Anthony Sykes & Company

             Is your QuickBooks Online account safe? Most likely it is. There is a reason why they are the most popular cloud-based accounting software today. However, when something is popular with consumers, it is also popular with criminals looking to take advantage of any opportunity they can. Consider this real-life example of how we helped one of our clients recover from an account hack.           The following details indicate a very sophisticated hack and underscore the need to be vigilant when it comes to criminals trying to steal your money. The Administrator’s account was hacked, and the associated phone number was changed. A Payroll Core subscription plan was added. This allowed the thief to add fake contractor names and associated email addresses. That step is key because this meant W-9’s were emailed to the “contractors”, filled out, and signed via DocuSign and then added to the Administ...

          Just like last year, the Tax Deadline for 2021 will be pushed back. This year it will now fall on Monday, May 17 . There have been calls for this action for some time. The reasons the Internal Revenue Service ( IRS ) took this action are many, but here are a few.           The Tax Season this year started two weeks later than normal. This was to accommodate law changes that were passed in December 2020 and make sure that IRS computers were updated. The newly enacted 2021 American Rescue Plan Act also makes some significant changes to existing tax law, including allowing a certain amount of unemployment benefits from 2020 to be untaxed. With this recent news, some may take additional time to file, but the IRS does not want anyone to file an amended Tax Return at this time. If you look at this time last year, there have been about 18% fewer Tax Returns filed . It’s clear that people needed more time....

There is much discussion at this time regarding the United States Postal Service ( USPS ) and how its capacity does not meet certain needs. This particular government agency touches almost all areas of life and it is the essential communication lifeline for the Internal Revenue Service ( IRS ). Many of our posts have been dedicated to helping Taxpayers understand how to identify and avoid tax related fraud. One constant truth is that the IRS only sends official communication through the USPS system. It is through these letters that Taxpayers will find out if they have tax responsibilities to care for and how to do so. There are also some who still file their tax returns on paper, through the mail. Many care for these things online, but for those who do not, a slow postal system wreaks havoc with IRS communication. If someone is sending a payment to the IRS , they will consider the postmark on the envelope as the date it was received. However a slower mail system will keep the c...

         Now that Tax Season is over and you have filed your Tax Return or received an extension, it can seem to be a time to rest. However, some may be concerned about a potential audit in the future. That is never an enjoyable process, but let us take a closer look at what the odds actually are.           In reality, just over 0.5% of all individual Tax Returns are selected for an audit. Most people do not need to have a morbid fear of this occurring to them. But there are different factors that can change this percentage. For example, those who do not own a business, claim no Tax Credits, or make less than $200,000 have about 0.2% chance of getting an audit. These individual tax filers will have simple returns that are less likely to set off any IRS red flags. The opposite can also be true.           Areas of Tax Credit, business and rental income, along with the fo...

     In the news, hardly a day goes by without hearing of or reading about a new type of Tax scam. They seem to get more deceptive as time goes by, and as a result it can be difficult to know if or when we have become a target of criminals. With that said, there are a few points that we can keep in mind that will indicate whether or not we are really dealing with the IRS, or just an impersonator. 1.    A Surprise Deposit in Your Bank Account. This is a new variation of a time tested trick. Fraudulent Tax Returns being filed with stolen identities is nothing new. The goal has always been to receive the Tax Refund before the IRS knew that a crime had taken place. The new aspect is that the Refund is being sent to the real Taxpayer, into their bank account. If you find yourself in this situation do not spend that money. Contact your bank, local police, the FBI, and the IRS. Inform them of the situation, as this is evidence of Identity Theft and bank fraud. A...

The 12 Biggest Tax Scams to Avoid  1. Phishing . There are so many fake websites and emails that are created with the sole intention to steal personal information. Remember that the IRS will never start contact with an email. 2. Phone Scams. This is a well-known and still very common method used by thieves. The IRS will never threaten a Taxpayer with arrest by the police or deportation. 3. Identity Theft . Tax Season is the time when the greatest amount of identity theft takes place. Taxpayers can help to protect themselves by choosing a Tax Professional who is trustworthy, honest, and protects their personal information. 4. Tax Preparer Fraud. Sadly, there are some preparers who look to take advantage of others. Taxpayers can help themselves by never signing a blank return and making sure they clearly understand the fees before choosing a preparer. 5. Fake Charities . If a group sounds similar to a well-known organization, but not quite the same, take some time to do mo...