Anthony Sykes & Company

     The tax filing deadline of April 18, 2022 is coming up soon. For those who need more time to gather their documentation and file a tax return, they can file an extension. That is much better than facing a failure to file penalty. However, from the point of view of the Internal Revenue Service ( IRS ), this does not mean that there is extra time to pay any taxes owed.      When payments are made late, penalties and interest are applied. So if a taxpayer were to wait until the extension date of October 17 to pay taxes that are due, there would be extra fines that could have been avoided. The filing date can be adjusted, but you must pay on time. If you need help, your Qualified Tax Professional can assist you in avoiding unnecessary penalties.

                 The Internal Revenue Service ( IRS ) is strongly encouraging all to remain vigilant in the face of ongoing and renewed scams and schemes. This would include having security software on phones, tablets, and computers. This along with understanding the basic trends of scams will protect taxpayers and tax professionals from identity theft.           Protect your personal information . This is more valuable than cash, or cryptocurrency if you’re into that. Never give it away to just anyone. Only share it when it is needed. A Social Security number, credit card number, bank or even utility account numbers can be used to steal money and create new accounts. Avoid phishing scams . The easiest way for criminals to get what they want is to ask for it. Internet ads don’t always come from companies that you can trust. Never download security software from a pop-up ad. It will say tha...

           At this point there is less than 1 month before the tax filing deadline. All needed documents should have been mailed or provided in electronic format. But what if something is missing? What if a form has a mistake? What should you do?           As soon as possible, contact your employer or the agency that issued the form and request a new one or inform them of the error. You might be able to receive a revised one soon. If not, the tax return must still be filed on time, or an extension must be filed before April 18, 2022 . Depending on what information is missing making an estimate is acceptable. When the form comes in later, an amended tax return can be filed.

          The Earned Income Tax Credit ( EITC ) is one of the largest tax credits. It has expanded for this year in a number of ways. For example, there is now no upper age limit for taxpayers to qualify for this credit. In addition, the EITC has expanded to include many who do not have children.           They must be at least 19 years old with income below certain limits. There are also provisions for those who are 18 and experiencing homelessness or who were in foster care. Overall, the amount of the credit has been raised and Economic Impact Payments or child tax credit payments do not count toward income when claiming this credit. Keep in mind that when claiming this credit, it will delay your tax refund by a few weeks by law as the Internal Revenue Service ( IRS ) checks to see if you truly qualify.