Welcome to www.BowenAccounting.com, providing quality Accounting and tax services to businesses and individuals in the greater Bakersfield area since 1999. "Helping you get to the bottom line!"
Current News and Updates
2/21/12 StopPodcastingYourself Plug!!!!!!
Oh my goodness! I love those crazy Canadians... They keep me sane while I am preparing your tax returns. We were Hoping to get some fans as clients. We were very lucky to be plugged on the show that had Paul F. Tomkins on it. He is one of my favorite comedians, and he also happens to be American, which can't hurt. If you have never heard the show click here to hear the episode where they plug Bowen Accounting.
2/17/12 Dirty Dozen Tax Scams
Here is an article from the IRS about the most prevelant tax scams that you should be on the lookout for. Identity theft, free money, and phishing scams are always in full swing during tax season because people are more likely to be handing out their social security number and personal information during this time. The key to all scams is that they prey on the lack of knowledge of the target and on the natural greed of people. Please read the article and be careful.
2/13/12 Stop Podcasting Yourself Spot
We recently signed up to have our company advertised on the www.StopPodcastingYourself.com podcast. Since we spend most of our days sitting at a desk or driving around to visit clients, we have a decent amount of time to stay entertained by lots of amazing podcasts. If you like Stop Podcasting Yourself, then we want you as a client. We are a small accounting firm, with only one CPA (Richard Bowen, CPA), and we hope to work with people that have a good sense of humor and a great outlook on life. Give us a call or email us to schedule an appointment (661) 342-0087, Richard@BowenAccounting.com.
2/2/12 Official Opening of Tax Season
We are very excited to get rolling with the official opening of tax season. We have already completed several tax returns, but the bulk is still yet to come. Great new! The IRS is accepting eFilings in just under a few hours, as opposed to the 24 hours it has taken for the last 8 years. I have also recieved reports from clients that they are recieving their refunds in as little as 5 days.
If you are new to our company than a there are a few things you should know; 1. We can prepare your tax return solely by email/fax if you are too busy for in office appointment. 2. We have evening and weekend appointments if you need them. 3. You can send us your documents by email, mail, fax, and by dropping them off in our drop box.
Our Schedule fills up pretty fast so contact us as soon as you have all of your documents ready.
12/31/11 Happy New Year
The new year is coming and I hope you are getting ready for tax season. The IRS has some helpful items on their website to help you out.
IRS - Where is my refund?IRS - 2012 Withholding Calculator
10/01/11 Final Filing Deadline
The final filing deadline is coming up. Please give me a call if you are ready (or not) to file. Even if you do not have all of your paperwork ready I can help you with that part. Filing on time (even by the second extension) is key when dealing with businesses or when you have an outstanding payment arrangment with the IRS. Not filing tax returns is a crime and can be used by the IRS and FTB as a reason to move forward with garnishments and property seizures!
All of that is a little scary! The point is that if you have not filed, it is time to do so. Give me a call and we will work together to make it happen.
04/18/11 1st Extension Information
Today is the last official day of tax season, and a few people have asked me file extensions for them. This is not a problem and is pretty easy to do. What is important to note is that if you end up owing money on your tax return and do not make a payment of more than you end up owing when you file your extension, you will be subject to the same penalties and fees as if you had just filed late without the extension. You may avoid a small 'late filing' penalty, but that is it. So if your return is not done, and you need an extension, you really need to work with your CPA on whether or not you need to make a payment with that extension.
Something else important to note is that on 4/15 your tax balance is already over 4 months late. This is why penalties and interest are such a big deal to late filers and extension filers. If you have a business that makes a net profit, you really need to make estimated payments throughout the current tax year. I have written an article on this topic called 'Counting the cost of taxes... In advance!' If you struggle with tax payments, or always feel like you are behind, you very well might be.
04/06/11 Sales Tax Automatic Deduction Proven
Many people do not know that they are entitled to an automatic deduction on thier schedule A of Sales Tax paid for the year. Most people do not keep track of all the sales tax they pay because it is a very time consuming process. If you do not keep track of it you will recieve an automatic deduction based on your income. There is a simple percentage used to figure this. Some might ask, 'how accurate is this percentage'? Well, as you can see from the picture, my client kept track of his sales tax all year and was a mere $18.00 below the freely given deduction built into the schedule A.
Click here to see the picture on our 'Tax News' Page
Maybe the IRS and FTB do know what they are doing after all.
04/01/11 The End Draws Neigh!
With only 2 weeks left in tax season people will no doubt be scrambling to get all of thier documents together. The official end of my tax season will be Friday April 15, 2011. You can call me after that, but I will be observing a strict holiday on that Saturday, and likely will not answer. If you still need to schedule an appointment, I am still taking new clients, you can contact us with the information on our contacts page.
If you have not yet recieved your tax refund or need to change your mailing address with the IRS, please use this official page.
03/04/11 Tax Season is Half Over
Even with the delay, we are nearly half way done with tax season. Most of the people who wait till late in the season to get their returns prepared have more complicated reporting requirements. Some others, just have not gotten around to it. Either way, I just want to remind you that Bowen Accounting has several methods available to deliver documentation (fax, email, drop off). Please contact us when you are ready, because our schedule at the end of the season is commonly very full, and we want to make sure you get the attention you deserve.
01/21/11 First Two Classes are Done
We completed the first two 'How did I get here, and what do I do now?!' classes. In total we had 10 attendees between the two offered classes. This is a much smaller turn out than I originally expected, but what we learned in the classes was powerful none the less. A reminder to everyone who attended, 'Take the time to invest in yourself and your future! Be the designer of your life, and do not let life happen to you on accident!'
We will be holding more classes after tax season. Please let me know if you are interested, and I will alert you when new dates are available.
01/04/11 Tax Season Delayed
Thanks to the new tax law changes that have taken affect as late at December 23, 2010 certain tax payers will have to wait until mid to late February to file their tax returns. If you fall into one of these three categories then you will be stuck until the IRS is done reprogramming their system. 1. Anyone who files a Schedule A (long form), and claims the state sales tax deduction (this is automatic on the Schedule A). 2. Anyone claiming the 'Higher Education and Fees Deduction' which is a new credit for post secondary school costs. 3. Anyone claiming 'Educator' expenses on the Schedule A. If you do not fit into one of these categories, I am ready to prepare your return as soon as you have all of your documents together.
However, do not let this stop you from making an appointment to have you tax return prepared. All of the tax forms will be finalized as of 1/14/11 (with a few exceptions), so we can prepare your return and be ready to file, whenever the IRS opens the efile system. Simple returns will be allowed to be filed 1/14/11, and most of the rest are scheduled to be allowed 2/14/11. If you are in a real rush, we can always paper file your return to give you a slightly faster return.
12/31/10 2010 Tax Year Letter & Check List
I have sent out an email and a letter with the tax year 2010 tax letter and check list, and I have also posted it here if you need to
refer to it for any reason.
2010 Tax Letter
2010 Tax Check List
12/27/10 IRS changes employee's Social Security Rates
On 12/17/10 The IRS officially released the payroll tax changes that are the result of the 'Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010 (H.R. 4853)', of which the net effect will be a 2% reduction of the employees portion of Social Security paid from payroll withholdings in 2011. Apparently this temporary reduction will not reduce the employee's lifetime Social Security benefits. The current withholding rate is a standard 6.2% of all taxable wages, and it will be reduced to 4.2% as of January 1, 2011. Employer's usually match what the employees pay in Social Security, but for 2011 they will be required to continue to pay 6.2%, while employees only pay 4.2%.
The income tax withholding tables will also be adjusted to allow employee's to take more pay home, but the annual income tax will not be affected, which may mean that many employees will owe the IRS money at the end of 2011. For 2009 and 2010 this is supposed to be offset by the 'Making Work Pay' credit, but that credit will not be available in 2011.
For the self employed there will also be a reduction in the SE Tax paid on your net earnings equivalent to the 2% reduction that employees are recieving (from 12.4% to 10.4%) for 2011.
12/21/10 First FREE class has been scheduled!
On the 'Classes' page you can see that we have two dates avaialable for the 'How did I get here, and what do I do now?' class. This class will have helpful information about identifying the weak spots in your current financial situation, practical and simple budgetting tools, and outlines that will help you plan and change your future.
This class is designed to help people that don't know what to do improve their financial outlook. If all goes well, the class will provide you with some much needed help, and some very practical and useful tools. To register for a class (for free) click the 'Sign-up for Class' logo on the left hand side under the menu.
12/20/10 New article about buying a house
Buying a house is a long and daunting process. Having a good outline of that process can make the process a little bit easier. This article is important for people that are in the middle of the process, people thinking about beginning the process, and also for people who will be buying a home in the next 1 to 2 years. Click here to read it.
12/15/10 New Tool to help you create amortization schedules
An amortization schedule is a listing of all the payments you will make on a loan and how they are broken down into principle and interest portions. You don't often need an amortization schedule, but when you do it is nice to create one quickly and easily. On the Bowen Accounting 'Tools' page you can use our 'Amortization Schedule Creator' to create a schedule, and also to see how much money you can save by making extra payments on your mortgage.
12/09/10 New Article about paying your mortgage off early
This article discusses whether it is a good idea to pay off your mortgage early or to take advantage of the maximum tax savings available via the 'Home Owners' Mortgage Interest Deduction'. Click here to read the article and find out for yourself.
11/25/10 IRS Video about the Small Business Health Care Tax Credit
For more information on this topic see our 'Tax News' section.
11/09/10 - New Article on how to get out of debt
The new article 'How to Get Out of Debt... Spend Less than You Make' has been posted to the 'Free Advice' Blog. It is chalked full of information on how to create, cut, and operate a budget. Most importantly, it tells you how to figure out how much debt you have, and has techniques on how to get out of debt. Click here to read it.
09/13/10 - 3rd 2010 estimates are due!
If you run a small business, or are an independent contractor then you probably need make estimated payments to the IRS and FTB. The 3rd payment for tax year 2010 is due 9/15/10. If you need help calculating the amount of the payment please contact Richard Bowen, CPA. This service is free to most of my clients, and very reasonably priced for new clients.
08/31/10 - New website
I have recently updated the website with a new look and a lot of new information. If you have not looked at our Resources, Services, Endorsements or Classes pages please do. While you are looking through the pages, if you think there is more information that you would like me to add please email me Richard Bowen, CPA.
06/23/10 - IRS is requiring testing for all federal tax return preparers
I must say that it is about time. Individual states have been requiring yearly testing and registration of state preparers for decades now. The IRS is in the process of taking this out of the hands of the state and mandating federal standardized testing. If your tax preparer is not registered with the IRS, and has not taken specific tests then they may not be eligible to prepare your tax return.
As a CPA I am no longer required to test for the state tax preparer registration through CTEC, and I will also be exempt from taking the IRS testing. The reason for this is that the annual continuing education (CE) requirements for a CPA are much more rigorous than for a registered tax preparer. There will be much more discussion on this to come since the IRS has not released all of the standards yet.