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Household employees play a crucial role in many homes, providing essential services such as childcare, eldercare, housekeeping, and gardening. However, employing household help comes with a set of responsibilities, particularly in terms of payroll, withholding, and tax reporting. This article delves into the intricacies of household employment, including the classification of workers, payroll req...

When engaging in activities that generate income, it's essential to understand how the IRS classifies these activities for tax purposes. The distinction between a hobby and a business can significantly impact your tax obligations. This article will delve into the hobby loss rules, the impact of the Tax Cuts and Jobs Act (TCJA) on deductions, the nine factors the IRS uses to determine if an activi...

Tax season can be stressful, especially if you're worried about penalties. Whether you're an individual or a small business owner, IRS penalties can add up quickly, turning a simple oversight into a costly mistake. Understanding what triggers these penalties—and how to avoid or reduce them—can save you time, money, and frustration. In this article, we'll break down the most common IRS pena...

We are pleased to announce that Shafiq Ahmadzai joined the Bowman team effective Tuesday September 3rd, 2024, as a Sr. Accountant in the Audit Department.  Shafiq brings over 4-years of experience in audit accounting leading audit procedures to ensure compliance with AICPA, PCAOB and GAGAS standards, conducting financial statement audits and producing detailed audit reports with actio...

We are pleased to announce that Aja Secheslingloff joined the Bowman team effective Tuesday September 3rd, 2024, as a Senior Accountant in the Audit Department.  Aja brings over 4-years of experience in audit and tax accounting where she gained experience inspecting 401k’s, 403b’s, completing financial statements, preparing taxes and reviewing financial statements.  Prior to join...

The Form 706, also known as the United States Estate (and Generation-Skipping Transfer) Tax Return, is a critical document in estate planning and tax management. One of its significant features is the portability election, which allows a surviving spouse to utilize their deceased spouse's unused estate tax exclusion amount. This article delves into the intricacies of the 706 portability election,...

Taxpayers are limited in the annual amount they can contribute to a Roth IRA. The maximum contribution for 2024 is $7,000 ($8,000 if age 50 or older), but the allowable 2024 contribution for joint-filing taxpayers phases out at an adjusted gross income (AGI) between $230,000 and $240,000 (or an AGI between $0 and $9,999 for married taxpayers filing separately). For unmarried taxpayers, the phase-...

Effective July 1, 2024, California Senate Bill 553 (SB 553) mandates that nearly all California employers implement a Workplace Violence Prevention Plan (WVPP). This requirement is a critical update for businesses, especially from an HR perspective, as it aims to enhance employee safety and reduce incidents of workplace violence. Who is Affected? Most employers in California must comply wit...

As you may recall, beginning with 2024, many companies are required to file Beneficial Ownership Information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN).  FinCEN is a division of the U.S. Department of the Treasury.  This legislation was enacted in 2021 under the Federal Corporate Transparency Act.  While the intention is to help reduce financial crimes ...

We are proud to announce Michael Anselmo, CPA, joined Bowman and Company, LLP as a Senior Manager in the Tax Department on September 16th, 2024. Michael is a Certified Public Accountant with over 17- years of experience in public accounting.  Prior to joining Bowman, Michael was working as a Senior Tax Manager with a local Stockton, Ca Firm, Iacopi and Lenz Accounting. Michael b...