Anthony Sykes & Company

           Now is the time of year when online shopping kicks into full swing. Add to that the upcoming tax filing season and it is a prime target for criminals to take advantage of what they see as opportunities. Here are some good practices that individuals and business can put into effect to help protect themselves.            Scams against employers.  Businesses can and have had their identities stolen. They need to protect their Employer Identification Number ( EIN ), just like a person must protect their Social Security Number ( SSN ). For this coming year, the IRS will be asking for extra information to verify that a Tax Return for a business is true. A trusted Qualified Tax Professional can guide a business through this more detailed process.            Avoiding phishing emails.  These types of messages take on a v...

       This is the time when we take time to reflect, on what has happened in the year. However, it is also the right time to prepare for the next Tax Season. The more that is done now, the less stressful it will be when the time arrives. This is especially true for people who have gone through certain events this year.            A new job.  Congratulations on finding new employment! One thing that you should do very quickly is make sure that the right amount of tax is being withheld from your paycheck. Otherwise a very unpleasant surprise will be presented when filing an Income Tax Return. This can take time, but it is worth the effort.              Taxpayers who make estimated tax payments.  Those who make payments throughout the year are involved in a payment plan or are self-employed, in a business partnership, or an S-Corporation. No...

        One word that can be used to describe the current efforts in Tax Reform is: speed. There are major changes to the current Federal Tax plan that are being proposed, and if passed, they will go into effect in less than 5 years. But what will happen when they do? Since the different plans are still being debated, nobody can say for sure. However, there are many possibilities that are of concern because they can lead to very big loopholes.           For example, there is a provision to change the Corporate Tax System in the US. Currently, all Corporate profits for US companies are taxed, no matter where in the world they are earned. This has led some companies to keep their overseas profits from coming back to the US, by any number of complicated schemes. The change would be a switch that only taxes profits earned in this country. On the surface, this might give more incentive for a business to transfer...

          It has now been made official. The IRS will NOT accept Federal Tax Returns that do not answer the questions about health coverage under the Affordable Care Act. This change in policy will go into effect next year, for the upcoming Tax Season. This is a significant move on the part of the IRS.           In the past, this requirement had been something of a gray area. Due to a variety of factors, the IRS has been processing Tax Returns where individuals have not shown that they have health coverage. However, they would still apply a penalty to these Taxpayers. Even so, in these situations a Tax Refund would still be issued, a little later than most. That will no longer be the case. As it stands, the ACA is still in place, and the IRS will apply its obligations under the law to all Taxpayers. Even if it means suspending or rejecting the processing of a Tax Return until it gets an answe...

          Every year, there are many Taxpayers who ask for a 6-month extension to file their Federal Tax Return. This year, that deadline is fast approaching on October 16 . For those who are filing a Tax Return this month, here are a few points to keep in mind.           It may seem to be very obvious, but make sure your Tax Return is filed on time . If one files late, after being given an extension, there are penalties and fines that will result. These can be avoided by simply filing on time. For those who know that they will owe, they should pay as much as possible to avoid more penalties and interest. A Qualified Tax Professional can help you to see how much you will owe and go over your payment options. Those who have an extension, and have been effected by disasters like earthquakes and hurricanes, will normally have more time to file.         ...

          It seems today, that the only constant that we can rely on is change. Whether that is true or not, there are many things that we do need to be aware of, and adjust to. There are waves of change that hit us whether we like it or not. It’s at those times, that we may be best served, by taking a step back and reflecting on time tested advice that can give appropriate perspective.           “Never stop learning”. Considering how fast technology changes, and its effects on the world continue to be felt in different ways, all of us are learning many things at the same time. It allows us to better meet demands and provide much needed services, especially in the area of tax and finance. While this can be intimidating, it must be embraced. The future will not wait, and there are unknown benefits that await those who adapt to changing times.         ...

          Most people would prefer simple tasks and activities over anything complex. Is the same true of taxes and finance? Most would give a resounding “Yes!” to that question. However, it has been said that over the past 30 years, that Federal Tax law has grown from 26,000 pages to 70,000 pages. Why has this taken place?           One theory is that the Tax code is stuck in what can be called the “Rinse. Wash. Repeat.” cycle. In this situation, a law is passed, but Taxpayers and professionals do their best to comply with the law while paying as little in tax as possible. When this is observed, Congress will pass another law to prevent these tactics, and the process starts again. It highlights how complicated things can get when many different groups are trying to represent their own interests, including the US government. Perhaps a balance can be reached, but it will be difficult to say the...