925-330-2795 info@chaoticcancellation.com

2016 Deadlines and Dates

Its that time of year again, well technically that time of year started last month but I’m a little bit behind or on-time or just barely by the skin of my teeth on time. We are working hard to get all of our clients up-to-date and all requests handled as fast as possible after being “out” sick for a few months. Technically, I’m never out sick for more than a day or two but did have a small setback in August, then again in Sept, snowballing into December but I’m all healed and ready to get through these deadlines…so without further ado..the official deadlines. 1/27/16 = W2s have to be mailed out –  done 2/1/16 = 4th qtr 2015 Sales Tax Return and Payments due – whew, done 2/17/16 = 1099s need to be mailed out to people 2/29/16  = San Francisco Payroll Tax Return due for last year 3/2/16  = FAFSA due for California 3/15/16 = Corporate Tax Returns due 3/31/16 = 1099s must be electronically filed (at this point, no changes can be made) 4/15/16 = Personal Tax Returns due 4/16/16 = I’m going to need a...

Love/Hate

I have this love/hate relationship with Better Business Bureau – I’m not sure that it does my business any good and having to pay for a membership to boost my rating really doesn’t seem right. They cancelled my membership again because my CTEC license hadn’t been renewed as of 12/2/15, ok, so I was little bit behind on getting that renewed. Clients come first, I hadn’t had a chance to get my continued education as of 12/2/15 – btw, that’s done, 20 hours of boring federal tax law updates done! but I still had plenty of time to renew with a late CTEC registration + fee as of 12/2/15. And the love part – sometimes I think it might be a good idea Then there’s the hate part of being really pushy and then refusing to renew it because the CTEC License had expired a smidgen – currently my company on the BBB site says non-rated (non-rated means I didn’t renew my membership) So random search on google for tax preparer in Concord, CA – found several on the PTIN website, then checked their licenses on the CTEC website – of the five I checked, only two were registered with CTEC and none were listed on the BBB website – so yeah, not going to be renewing that anytime soon, save my...

How To Know If You Have Or Are A Great Bookkeeper

Absolutely love this post from Nerd Enterprises, Excerpt:  So how do you know if your bookkeeper is really great?! How do you know the difference between a bookkeeper who is just ok and one who really knows what (s)he is doing such that you are truly getting value for your money? How do you know if you are getting quality bookkeeping services? There are probably many ways of evaluating this and I am sure that if I ask 5 different people I will get 5 different answers with multiple criteria and there will likely be some crossover in the answers. The first thing a great bookkeeper should be concerned with when taking on your job is to review a copy of your books and along with that your last filed tax return. When I ask a client’s CPA for their last filed tax return so I can make sure the balance sheet agrees the reaction I get is that I am singing music to their ears. The very fact that I am asking for that tells them that I know what is important. It is also all too frequently an issue. Check your own company’s books right now. Go run the balance sheet for 12/31/xx where ‘xx’ is the last year you filed hopefully 2010 at the latest if not 2011. Then pull out your balance sheet page from your tax return. This does not apply to sole proprietors, only Corporations and LLC’s. Look at the Cash line: Does it agree to your balance sheet? Either way skip down to total Liabilities and Equity. Does that agree? Does the...

Why I am not a CPA

California CPA Licensing requires that you have a bachelor’s degree with related accounting courses + pass the exam + 1 year and only 1 year of experience certified by a licensed CPA to get your CPA license. I could pass the exam, on practice tests, I’ve passed with 80% or better. I have a masters of science in accountancy, I have over 100 hours of continuing education, each year I get about 20-30 hours of continuing education and I have over 25 years of accounting experience but I don’t work for an licensed CPA or CPA Firm and have no desire to work for someone else or at a CPA Firm. I had a friend that worked for a CPA firm and it almost killed her, the amount of work and stress related to working there and I have no desire to be that stressed out to just gain the 1 year of experience from a licensed CPA. I think the laws need to be changed, you should be able to get your certified of experience from other sources such as letters of recommendation from clients or mentors, you should not have to get your experience certified by a licensed CPA. I don’t know that I’d want to work for someone that only has a year of experience or just holds a bachelor’s degree. When I was in my master’s classes, a lot of those people had no experience in the actual day to day accounting. I also think the laws should be changed to require more than 1 year of experience, you should have a least 5 years...

BBB Accreditation

BBB Accreditation Re-Instated 11/24/14 I have been reinstated by BBB, still doing the same thing..bookkeeping, accounting and tax prep services.  Still have an A+ Rating and now their site just says Accredited since 11/24/2014.   BBB Accreditation Removed Utterly ridiculous, Better Business Bureau just told me that I can’t be accredited through them unless I take tax preparation off my website or have a CPA license. You know how many people prepare taxes that don’t have any kind of license or education. The thing is I always wondered if the only reason I had accreditation with the BBB is because I pay the them each month for the pleasure of having an accreditation. I don’t know that I have gotten any related business through having a BBB Accreditation status either for that matter. I’ve had an A+ Rating since 2008 and now because I don’t have a California Tax Return Preparer license or CPA License, I’m no longer qualified in their eyes to be accredited but I still do bookkeeping and accounting and tax preparation, ridiculous!    Oh well, that saves me $62.00 per month   This is going to be taken down soon but here’s what the BBB website currently says about Chaotic Cancellation as of 8/25/14:        ...

Quote of the Day

Do not go where the path may lead, go instead where there is no path and leave a trail. – Emerson What lies behind us and what lies before us are small matters compared to what lies within us – Emerson Earth laughs in flowers – Emerson Time is an illusion.— Albert Einstein Not all those who wander are lost.— J.R.R. Tolkien (The Fellowship of the Ring) Short cuts make for long delays.— J.R.R. Tolkien (The Hobbit) May the wind under your wings bear you where the sun sails and the moon walks.— J.R.R....

Office Hours 2014

Our office hours have changed once again. We are closed Sunday and Monday. We are open Tuesday through Saturday from 12pm-8pm.

SEPs: A Quick and Easy Retirement Plan Option

Setting up and maintaining a simplified employee pension (SEP) is probably easier than you think. The sooner you get started saving, the more secure your retirement will be, plus your business can gain tax advantages right away. SEP Basics The SEP is a stripped-down retirement plan mainly intended for self-employed individuals (including sole proprietors, partners, and LLC members), as well as small corporate employers. If you’re self-employed, you can make an annual deductible contribution of up to 20 percent of self-employment income to a SEP account. For this purpose, self-employment income generally equals the net profit shown on your Schedule C, E, or F, minus the deduction for 50 percent of self-employment tax from page one of Form 1040. If you’re employed by an S or C corporation, the company must establish the SEP on your behalf. The corporation can then make a deductible contribution of up to 25 percent of your salary to your SEP account. For 2014, the maximum possible contribution to any participant’s SEP account is $52,000 (up from $51,000 in 2013). The Advantages and Disadvantages Advantages: You can establish a SEP at just about any brokerage firm or financial institution. Simply fill out Form 5305-SEP, which takes only a few minutes. It doesn’t get any easier than this. Even better, you can establish a SEP as late as the extended due date of the federal income tax return for the year the initial deductible contribution will be made. Here’s an example, assuming you are a sole proprietor. You extend your 2013 individual tax return as long as possible, to October 15, 2014. You have until...

Questions to ask your tax preparer

Great article on Forbes today about 11 questions to ask when hiring a tax preparer and I agree on the 11 questions you should ask your tax preparer or potential tax preparer and we got your answers and we’ve added an additional question and answer. Do you have a valid PTIN?  Yes, we do and you can check for valid PTIN on the PTIN Directory What is your tax background? Check out our qualifications Have you prepared a tax return before for my type of situation? If we have never done your type of tax return or special circumstances, we will tell you up-front that it might be an extra cost or we will need to consultant with a specialist in that area. We do have several resources and other CPA firms we can contact to help with specialized tax returns and if we can’t help you, we will refer you to someone that can. Do you know the requirements of the state and localities where I am required to file? We do know Federal Tax Law, California Tax Law and New Mexico Tax Law. Each state has quirky filing requirements and as part of our due diligence, we do research and learn about a specific state law or requirement before filing. What records and other documentation do you need from me? We send out a tax list of required documents at the beginning of each year to each of our clients, since every client is different, everyone gets a different list. However for a new client, we send a generic tax planner and then ask questions regarding the answers....

What Income in Nontaxable?

Most types of income are taxable, but some are not. Income can include money, property or services that you receive. Here are some examples of income that are usually not taxable: Child support payments; Gifts, bequests and inheritances; Welfare benefits; Damage awards for physical injury or sickness; Cash rebates from a dealer or manufacturer for an item you buy; and Reimbursements for qualified adoption expenses. Some income is not taxable except under certain conditions. Examples include: Life insurance proceeds paid to you because of an insured person’s death are usually not taxable. However, if you redeem a life insurance policy for cash, any amount that is more than the cost of the policy is taxable. Income you get from a qualified scholarship is normally not taxable. Amounts you use for certain costs, such as tuition and required course books, are not taxable. However, amounts used for room and board are taxable. All income, such as wages and tips, is taxable unless the law specifically excludes it. This includes non-cash income from bartering, such as the exchange of property or services. Both parties must include the fair market value of goods or services received as income on their tax return. If you received a refund, credit or offset of state or local income taxes in 2012, you may be required to report this amount. If you did not receive a 2012 Form 1099-G, check with the government agency that made the payments to you. That agency may have made the form available only in an electronic format. You will need to get instructions from the agency to retrieve this document....