Anthony Sykes & Company

           Even with a large backlog, the Internal Revenue Service ( IRS ) still sends out letters and notices to Taxpayers at all times of the year. They could be for several reasons including, the tax return being changed by the IRS , the taxpayer being due a larger or smaller refund, a question about the tax return, or even the need to verify an identity.           There can be an increase in mail sent out in the weeks after Tax Season has finished. If you receive mail from the IRS , please remember some simple things. Do not ignore it . Reading the letter will explain the reason for the contact and what, if anything, should be done. Do not panic. The IRS normally contacts people by mail. The letter or notice will explain what is needed. Read carefully and completely. Everything you need to know is usually in the letter. If a response is needed, the date required will be there. You can always ask your Qua...

     The Internal Revenue Service ( IRS ) has decided to suspend the mailing of many notices to taxpayers and tax professionals. Many of these letters are automatically generated. The reason for stopping these letters is that IRS employees have a great backlog of mail to sort through. At this point, many of the letters being sent out do not accurately reflect the current situation.      Some may still be received over the next few weeks. The IRS cannot legally stop sending out all notices. However, there is often no need to respond because they are still working on last year’s tax returns. But if there is a problem for this year, interest and penalties will continue to accrue. So, it is in your best interest to take care of current tax responsibilities as soon as possible.

                 With a new Tax Season set to begin, we need to remember to take steps to protect ourselves from scam artists and criminals. For a certainty, they are adjusting and preparing to attempt to capture your personal information. We need to be aware of their current tactics and remain vigilant. Here are some basic points to keep in mind.           One common trick that they use is to make a phone call and impersonate a Franchise Tax Board ( FTB ) or Internal Revenue Service ( IRS ) employee demanding a tax payment. If these agencies need to confirm details with you, the first step is always a letter mailed through the United States Postal Service. If a call is necessary, the employee will identify themselves, be courteous, and never demand immediate payment. They will never threaten to call the police, ask for gift cards, or try to find out your banking information. These are th...

                 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 Internal Revenue Service ( IRS ) will still initiate communication by written letter. Never using Social Media or a text message. There is always a specific reason for the letter, like informing the Taxpayer of a large Tax amount that is due, there is a question about the Tax Return, or that the Tax Return has been changed by the IRS . What should you do if you receive a letter like this?       Never ignore communication from the IRS . The letter will clearly state what needs to be done. There is no need to panic, reading the letter closely usually helps you to get a clear understanding about what has happened and if anything has changed. Always keep a copy of any letters or notices, and put them with your important tax documents. They may be needed later. If the letter informs you of a tax amount that must be paid, there are a variety of payment options . Pay as much as you can, even if it is not the full amount. However, if you are asked to pay in a specific way...

     The second round of Economic Impact Payments ( EIP ) are being sent out by the Internal Revenue Service ( IRS ) as fast as possible. To speed up the delivery, many will receive these funds as a debit card in the mail. The IRS does not make the determination of who receives a card, and your particular form of payment might be different from the last time. They are being sent to all 50 states, so watch your mail if you qualify and have not received your EIP yet. It has been stated that Taxpayers in the Western US are more likely to be sent a card. The Get My Payment tool is useful to determine your EIP status.

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...