Anthony Sykes & Company

         A sweeping change of the Federal Tax code has been passed. There are many questions and concerns about how it will affect individuals and businesses. Some changes are planned to be permanent, others will go away after a period of time, but now is the time to get familiar with the details of what this act will really do.           First of all, please keep in mind that this law will not affect the Tax Return you will file by April 2018 . The provisions and changes in this Act will start in 2018 and will be seen in the Tax filings in 2019. For individuals , there will be some very big adjustments in how their finances are taxed. For example, a Taxpayer will only be able to file as: Single or Married Filing Jointly . In future posts we will go into greater detail on this and other changes.           In the area of business , we can find other ways the Tax C...

          In recent years, there has been a rapid growth in the travel industry with regard to vacation accommodations. It seems that there are many options that allow people to choose where they can stay when visiting other areas, but most interestingly, more people than ever can now offer up their home or a vacation home for travelers to stay in. While this might be a new field to some, this is a source of income that is quite familiar to the IRS. As a result, there are well established rules in effect when it comes to renting a vacation home.           Simply stated, the rules about taxing vacation home rentals change depending on whether the home is rented for 15 days or more in the given year. If it is less than 15 days, then congratulations are in order. There will be no taxes applied to that income! Qualified expenses can still be used as deductions as well.            If t...

          Now is the time of year when many employers may give gifts to their employees or show appreciation to the staff for a year of good work. These are common expressions, but like with most situations, there is a potential Tax impact depending on the details of what is provided and how.           If the gifts provided are infrequent and have a low cash value to make it impractical and unreasonable to account for them, they meet a certain criteria. They will be tax-free to the employee and tax-deductible for the employer. For example, books or flowers given for outstanding performance, “low cash value” holiday or birthday gift, or an occasional meal for employees and their guests would fall into this category. This is a familiar situation for many.           However, if the gift is cash, or can easily become cash, the circumstances change. In the view of the IRS, this becomes ...

          Identity theft has been a growing source of criminal activity for many years. Unfortunately, the same can be said for businesses, especially small businesses. This information has often been used to gain fraudulent Tax Refunds or credit cards. Stealing this sort of data has essentially turned into an industry of theft.           To combat these clever thieves, the IRS has new protection methods in place that will go into full effect next year. They are designed to spot suspicious Tax Returns, while at the same time, making sure the true Returns are processed faster. This is really an expansion of some pilot programs that were put in place 2 years ago. Last year that program was expanded, now it is going full scale, and their effects will be made known in the coming months.           There will be a variety of new questions that will accompany a submission ...

           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...