Anthony Sykes & Company

            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.    ...

                 In our last few posts, we have taken the time to highlight all of the details found in the Taxpayer Bill of Rights . This is the guide for how the Internal Revenue Service ( IRS ) operates. The last point is The Right to a Fair and Just Tax System .           This certainly sounds like a very difficult thing to expect, especially with how things have been going the past few years. But the basic idea is that we can expect the tax system to consider facts and circumstances that affect the ability to pay, or provide information in a timely manner. We have seen this applied the past 2 years when the individual tax filing deadline was pushed back because of COVID-19 . It was not practical to expect people to provide their tax returns at the same time as normal.           If you meet certain conditions and cannot pay your tax debt, yo...

                 The Taxpayer Bill of Rights is a detailed document that outlines the rights that all taxpayers have before the Internal Revenue Service ( IRS ). We all need to be aware of them because taxes are a very personal matter. This post will discuss The Right to Privacy . This involves the expectation that all IRS inquiries, examinations, and enforcements will comply with all laws (including due process rights), be no more intrusive than necessary.           If collection measures get to the point where the IRS is seizing wages, there is a portion that will be protected from a levy. The IRS cannot seize necessary personal items. A home can only be taken by court order and they must show there is no other reasonable way to collect the tax debt. The IRS should not seek any information about your lifestyle during an audit if there is no sign you have unreported income. The taxpayer h...

When it comes to collecting tax debt, the IRS has a variety of options to use. Certain ones can only be used when proper criteria have been met. That is the case when it comes to a levy. Employers must be aware of this because there can be situations when they are contacted by the IRS.           If a levy comes against an employee, vendor, or customer you must quickly turn over the property that has been named. These levies are continuous, and the IRS will give notification when it will end. When it comes to a levy on wages, you will still pay your employee what is not covered by the levy. Following these rules as a business owner will keep the person subject to the levy from having more penalties added to them. If this situation comes up, promptly cooperate with the IRS requests. It will help the other person or entity.

         When it comes to collecting tax debt, the IRS has a variety of options to use. Certain ones can only be used when proper criteria have been met. That is the case when it comes to a levy. This can only be applied after a tax debt has been made known to a Taxpayer or business, they refuse to pay, and a notice of a levy has been provided to them.           The Tax Cut and Jobs Act has now extended the time for filing a claim and take civil action to stop a wrongful levy. That time has increased from 9 months to 2 years. This ability is not available to the one subject to the levy. A wrongful levy claim can only be made by someone who feels the property belongs to them (not the Taxpayer in debt), or that they have a claim greater than the IRS. When it comes to situations like this, it is often best to consult a Qualified Tax Professional to get the best guidance on how to move forward

         When it comes to collecting tax debt, the IRS has a variety of options to use. Certain ones can only be used when proper criteria have been met. That is the case when it comes to a levy. A levy is the taking of property to make sure a tax debt is paid. This option can only be used if (1) a Tax bill has been sent, (2) the Tax bill has not been paid, and (3) a levy notice has been sent informing the taxpayer of the process that will take place. It must inform them at least 30 days before that happens.         A levy can involve individuals when it comes to the IRS seizing property they hold like their house or car. It can also involve business owners. The IRS has a wide view when it comes to property. It has consistently held that wages and bank accounts are property and can also be levied. This would involve notices being sent to them as well. However, the Tax Cuts and Jobs Act passed last year has made some adjustments i...