Desert Breeze Bookkeeping - Tehachapi

Public Service Announcement:
Stock up on stamps before the increase next month.
The cost of mailing a letter is increasing again as the United States Postal Service works to address its long-running financial challenges.
Beginning July 12, the price of a First-Class Mail Forever Stamp will increase by 4 cents, from 78 cents to 82 cents. Domestic postcards will rise from 61 cents to 65 cents, while international postcards and letters will increase from $1.70 to $1.75. The price of domestic metered mail will climb from 74 cents to 78 cents. See less

Have a great Memorial Day and thank you to all of our veterans and active duty members for your service. We will be closed until Tuesday.

In case you were wondering...

State and Local Tax Collections Per Capita by State, 2026 Compare state and local tax collections by state, including state and local tax collections per capita in your state. See more.

Seven days, 5 hours, and 20 minutes until the 2025 tax deadline. Do you know where your tax forms are? Do you need an extension filed?

From the Tax Foundation:

Tax Cuts Arrive in the Form of Larger Refunds

Larger refunds arriving: The 2026 filing season is the first to reflect tax changes from the One Big Beautiful Bill Act, including new deductions for tips, overtime, auto loan interest, and senior citizens.

Because these tax cuts weren't reflected in IRS withholding tables, many taxpayers over-withheld throughout 2025—and are now seeing that money returned as larger refunds.

By the numbers: The most recent data finds that the average refund is $3,804, up about 10 percent compared to this time last year.

Total refunds issued are also running ahead—$109 billion so far compared to $102 billion at the same point in 2025.

Nearly 69 percent of filers have received a refund so far, compared to about 63 percent for the full 2025 filing season.

Big picture: While bigger refunds will grab attention this filing season, the temporary provisions driving the surge aren't why the law is expected to boost the economy.

The real growth impact comes from permanent reductions in marginal tax rates that increase incentives to work and invest over the long term. Read more.

Just a reminder that we are closed from noon on February 20th until 8am on Monday.

In the first week of doing 2025 Tax Returns, we haven't seen any clients with Tip Income. The clients that had overtime in 2025 are seeing substantial increases in refunds. If qualified OT is not shown on your 2025 W-2, bring your last pay stubs to your appointment!

We just transmitted our first tax return for the year. It was also the first client whose child was eligible for a Trump Account ($1,000) and they saved money from the overtime adjustment. A fun start to the 2026 Tax Season!

https://rcreports.com/blog/irs-cp261-update-what-accountants-should-tell-their-s-corp-clients/?omnisendContactID=61d63793ea5fa7001f2f3291&utm_campaign=email3&utm_campaign=260123-PTIN-RCR%2ASL3-04-Clicked-Ever-xGmail&utm_medium=content-syndication&utm_medium=email&utm_source=cpa-directory&utm_source=omnisend

IRS CP261 Update: What Accountants Should Tell Their S Corp Clients If you work with S corporations, you’ve probably seen the CP261 notice—the IRS letter confirming an S election. For years, it was a simple acknowledgment. That changed in late 2023. The IRS added language about reasonable compensation, and it’s not just a suggestion. It’s a compliance warnin...

Reminder to taxpayers who earned Overtime and/or Qualified Tips. If neither are noted on your 2025 W-2, bring your last pay stub of the year with you to your tax appointment. Only do so if you want to save paying for taxes that you may not have to!