Anthony Sykes & Company

        The Tax Cuts and Job Act has made people in all areas of life stop and evaluate their financial situation. This is especially true of small business owners. This shake-up of the tax code has led to some potential opportunities. You may be familiar with the new 21% top tax rate for business and “pass-through entities” that can qualify for a 20% deduction on income going through the business. But do you know how those businesses can qualify for these benefits?          There are specific guidelines to meet, and it often involves changing incorporation status. The IRS has just released new guidelines which have adjusted this process. Now is the time to take an honest look at your business to see if it would be the right choice for you. At Anthony Sykes & Company , we will give you a free consultation to help you make the best decisions for your business.

      When the IRS makes a change, they try to tell Taxpayers about it, so the adjustment is made easier. The Tax Cuts and Jobs Act is a huge change, and they have been slowly letting all of us know about how things will look moving forward. January 1 is just around the corner! Most of us would think Tax Reform applies to those still in the workforce. It certainly does, but it will have a great impact on those who have retired and are living off their pension, Social Security, or an annuity.        Simply put, they need to make sure they are withholding enough tax from their retirement income. If not, these older Taxpayers will be in for a shock. Sending in estimated payments, 4 times each year, is recommended to make sure everything stays balanced. Each source of income has unique rules to follow, so it is strongly encouraged for those in this situation to seek the help of a Qualified Tax Professional. They can help navigate this n...

          The plague of business identity theft has been a growing problem for many years. While the IRS has taken steps to keep fraudulent Business Returns from being processed , criminals are always adapting their methods.           The filters put in place last year flagged over 20,000 returns that had suspicious activity. This kept over $2.2 Billion in “refunds” from being paid out. Sadly, this is still not enough. It seems that the new guidelines are not catching everything. During the same period last year, about $200 Million was paid out by the IRS in Business Tax Refunds using Employer Identification Numbers (EIN) that should not have been processed. Some funds are even being accidentally released when the accounts have been locked.           The IRS does its best, but it cannot be relied on for everything. As Taxpayers and Business Owners, we must do our...

         Now that school is back in session, it’s a clear sign that summer is coming to an end. In many places, it’s time to expect a clear change of weather. It can also be the time for parents to prepare for some serious tax savings when it comes to expenses related to their children. With a little organization now, the benefits can be felt in the future.           Most of us are familiar with the Childhood Tax Credit , which can be claimed for children under the age of 17. The TCJA has affected this slightly, but it continues to be a source of joy for parents. However, there are other situations that can become tax benefits, which often occur during the summer months.           If the children are sent to a day camp, or have a nanny for the school break, those costs might be able to be written off by the parents. This is where good record keeping is critical. The car...

     At times, it seems that the only constant in life is change. This can be magnified if we hold onto wrong ideas, or do not recognize the shift to what the future will hold. When the Tax Cuts and Jobs Act was passed, it was a major event in the world of taxation. Now we all need to take time to understand how it will change things.      Along with the 21% corporate tax, the TCJA will now apply the same tax on nonprofits when it comes to employee benefits. Having a nonprofit pay taxes is nothing new . However, this provision looks to affect churches as well, which would be unprecedented. The tax is really directed at benefits the employees receive. What benefits are subject to taxation and who will pay?      That is unclear because the IRS has not yet given any direction on this subject. This could mean that certain groups will have to file tax forms for the first time. The move forward must be tempered with some patience, as the IRS ...

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