Anthony Sykes & Company

             The Internal Revenue Service ( IRS ) continues to focus on applying the tax laws with accuracy and fairness. With that in mind, they have announced that they are restarting a program that focuses on individuals who did not file returns from 2017 to 2021 and had at least $400,000 in income. They have identified at least 125,000 cases of people who are not in compliance.           The non-filer letters will be going out every week to start the process of filing returns, collecting taxes, interest, and penalties. The basis of these letters comes from information through Forms W2, 1099 and others. Those who receive letters of this nature need to take quick action. The enforcement actions in this program are stronger than usual. That makes it critical that those who receive these letters go to a qualified tax professional . The IRS can be made aware of qualifying deductions and credits that can change the overall situation. Time is of the essence.

              Phishing is a problem that never really goes away, but the intensity increases at certain times of the year. Tax Season is one of those times. Phishing is the practice of sending fraudulent communication pretending to be from a source that is trustworthy. This can take on different forms. Most common are emails and text messages.           The Internal Revenue Service ( IRS ) will never send a message to taxpayers asking for personal or financial information. These types of messages are received frequently and are created to induce panic or fear so that taxpayers will act without thinking. If you get a suspicious message, do not reply. Do not click on any attachments or links. This can install a virus. Delete the message. The IRS will never use social media to ask taxpayers for information.

            The pandemic caused a great disruption to many institutions, and the Internal Revenue Service ( IRS ) was not exempt from this. In fact, their mail services were paused for a time and many who had tax balances did not receive a notice for the tax years 2020 and 2021. When tax balances are not paid promptly, penalties and interest will compound the amount. How will the IRS rectify this problem?           At the end of 2023, it was announced that the IRS had created a program to provide relief for those who were not given a written notice that they had a tax balance. They will automatically waive penalties on taxed amounts of $100,000 or less. Those who have already paid may be eligible for a credit on other tax years or a refund of the tax penalty. Those with more than $100,000 in taxes assessed are not automatically enrolled, but they can apply for relief.           One reason why these letters are so important is that they provide the options available for taxpayers