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Virtual CFO Services for Startups: A 2026 Guide

2026-08-03T20:31:20.039-04:00

What Virtual CFO Services for Startups Actually Cover
- Core Responsibilities: From Financial Modeling to Investor Reporting
- How a Virtual CFO Differs from a Bookkeeper or Controller
When to Hire a CFO for a Startup: Timing Signals That Matter
- Pre-Seed Through Series A: Stage-by-Stage Decision Framework
Outsourced CFO vs. In-House CFO: A Direct Comparison
Startup Financial Modeling Services: What Good Looks Like
- Cash Flow Optimization, Burn Rate, and Runway Projections
- Unit Economics, CAC/LTV, and Budget Variance Analysis
Virtual CFO Pricing Models: What Startups Pay and Why
Red Flags and Vetting Criteria for Virtual CFO Services for Startups
- Tech Stack Integration: QuickBooks, Dashboards, and Reporting Tools
- Exit Strategy Planning and Investor Readiness
Fundraising, Investor Relations, and Pitch Deck Support
Conclusion

Last Updated: August 3, 2026

Founders who delay getting financial leadership often discover the hard way that virtual cfo services for startups are not a luxury reserved for later-stage companies. At Paldino Company CPA, we work with early-stage entrepreneurs and small business owners who consistently underestimate how much damage poor financial visibility does before their first major fundraise. The gap between a startup that closes a Series A and one that stalls is rarely the product. It is almost always the financial infrastructure behind it. Below, we break down exactly what these services cover, when to engage them, and how to vet providers so you do not waste money on the wrong fit.

What Virtual CFO Services for Startups Actually Cover

A virtual CFO is a senior finance professional who provides strategic financial leadership on a fractional or outsourced basis, without the overhead of a full-time hire. Virtual CFO services for startups typically span financial modeling, cash flow optimization, investor reporting, regulatory compliance, tax planning, and strategic advisory. This is not bookkeeping with a fancier title. A virtual CFO sits in board meetings, challenges your assumptions on unit economics, and tells you when your burn rate is unsustainable before your runway disappears.

Core Responsibilities: From Financial Modeling to Investor Reporting

The day-to-day work of a virtual CFO covers high-stakes functions:

Financial modeling and forecasting: Building dynamic models that project revenue, expenses, and capital needs across multiple scenarios
Burn rate and runway analysis: Calculating how long current cash reserves last under different growth assumptions
Budget variance analysis: Comparing actual performance to plan and explaining the gaps
Investor reporting: Preparing monthly or quarterly packages that give investors clean visibility into financial health
Cash flow management: Monitoring receivables, payables, and working capital to prevent liquidity surprises
FP&A support: Translating raw financial data into the strategic insights founders need for decisions
Pitch deck financials: Building the financial slides that underpin fundraising narratives
Tax planning and compliance: Coordinating with CPAs to minimize tax exposure and stay current with regulatory requirements

How a Virtual CFO Differs from a Bookkeeper or Controller

A bookkeeper records transactions. A controller ensures those transactions are accurate and produces financial statements. A virtual CFO uses those statements to drive strategy. Many startups hire a bookkeeper and assume their finances are "handled," then walk into an investor meeting with no coherent story about their CAC/LTV ratio, monthly recurring revenue trends, or Series A preparation timeline. A virtual CFO bridges the gap between compliance-level accounting and the financial transparency that investors and lenders actually require.

When to Hire a CFO for a Startup: Timing Signals That Matter

Knowing when to hire a CFO for a startup is one of the most consequential decisions founders make. The clearest signal is complexity, not revenue. When your financial decisions start requiring scenario modeling rather than gut instinct, you need a CFO. Other concrete triggers include:

Preparing for a seed or Series A fundraise
Managing equity management and cap table complexity
Hiring employees and dealing with payroll, benefits, and labor cost management
Entering contracts that involve milestone-based payments or deferred revenue
Needing to present audited or reviewed financials to a partner or investor

Pre-Seed Through Series A: Stage-by-Stage Decision Framework

Stage	Primary Need	Virtual CFO Focus
Pre-Seed	Clean books, basic runway model	Financial controls, bookkeeping oversight
Seed	Investor reporting, burn rate tracking	Cash flow optimization, pitch deck financials
Series A Prep	FP&A, due diligence readiness	Financial modeling, data room setup
Post-Series A	Board reporting, growth strategy	Budget variance analysis, capital allocation

Pre-seed founders often need basic financial hygiene more than strategic advisory. Seed-stage companies need someone who can speak investor language and build the financial narrative for the next raise. By Series A preparation, you need a virtual CFO who can run a clean due diligence process, because sophisticated investors will pull apart your financial model line by line.

Pro Tip If you are using QuickBooks and your chart of accounts has never been reviewed by a senior finance professional, fix that before you approach any investor. Messy books signal operational immaturity faster than almost anything else.

Outsourced CFO vs. In-House CFO: A Direct Comparison

The case for an outsourced CFO over a full-time hire is compelling at most startup stages. A full-time CFO commands a significant salary, equity, and benefits package. For early-stage companies, that cost is not justifiable when the CFO function is needed for a fraction of the working week. An outsourced CFO delivers senior-level expertise at a fraction of that cost, with the added benefit of scalability: you can increase engagement hours ahead of a fundraise and pull back during quieter periods.

Two professionals sitting across from each other at a modern office table reviewing financial documents and a laptop, bright natural light from floor-to-ceiling windows suggesting a strategic advisory conversation in a contemporary New York office

The trade-off is depth of integration. A full-time CFO is embedded in your culture and builds institutional knowledge over years. An outsourced CFO operates on a defined scope and may miss informal signals. For most startups before Series B, that trade-off strongly favors the outsourced model.

Factor	Virtual / Outsourced CFO	Full-Time CFO
Cost	Fraction of full-time cost	High salary plus equity
Availability	Defined hours, scalable	Full-time presence
Expertise breadth	Cross-industry experience	Deep company-specific knowledge
Scalability	Adjusts to stage	Fixed headcount
Best for	Pre-seed through Series A	Post-Series B and beyond

According to SCORE's small business financial guidance resources, most early-stage businesses significantly overspend on administrative overhead before establishing a clear financial strategy. Fractional leadership models address this directly by matching cost to actual need.

Startup Financial Modeling Services: What Good Looks Like

Most startup financial models are either too simple to be useful or too complex to be trusted. Good financial modeling lives in the middle: detailed enough to answer real questions and transparent enough that an investor can audit the assumptions in thirty minutes. A credible financial model includes revenue build by segment, a headcount plan tied to operational milestones, a working capital schedule, and scenario analysis showing what happens if growth is 30% below plan.

Cash Flow Optimization, Burn Rate, and Runway Projections

Burn rate is the single most important number for most pre-revenue and early-revenue startups. Gross burn tells you total monthly cash out. Net burn tells you what you are actually losing after revenue. Runway is simply your current cash divided by net burn. A virtual CFO builds a rolling 13-week cash flow forecast that flags potential shortfalls before they become crises.

Watch Out Startups that manage burn rate reactively rather than proactively routinely discover they have four to six weeks of runway left with no time to raise or cut costs strategically. By the time the bank balance triggers alarm, the options have already narrowed.

Unit Economics, CAC/LTV, and Budget Variance Analysis

Unit economics are the foundation of any credible growth story. Customer Acquisition Cost and Lifetime Value are the two numbers investors interrogate most aggressively, because they reveal whether your business model actually works at scale. A virtual CFO builds the CAC/LTV model from first principles: what does it actually cost to acquire a customer across every channel, and how long does a customer stay before churning? Budget variance analysis then closes the loop by comparing what you planned to spend on acquisition against what you actually spent.

Harvard Business Review's analysis of startup financial discipline consistently identifies poor unit economics tracking as a leading predictor of startup failure in growth stages.

Virtual CFO Pricing Models: What Startups Pay and Why

Pricing for virtual cfo services for startups varies considerably based on scope, stage, and provider model. Most providers use one of three models:

Monthly retainer: A fixed fee for a defined scope of work, typically covering a set number of hours and deliverables.
Project-based: A flat fee for a specific engagement such as building a financial model, preparing for a fundraise, or setting up financial reporting infrastructure.
Hourly or time-and-materials: Less common for ongoing CFO work, but used for advisory engagements or one-time analyses.

Platforms like Zeni start their CFO services at $1,500 per month, while Ignite Spot begins at $950 per month for smaller businesses. GrowthLab Financial Services also starts at $1,500 per month. For Paldino Company CPA's virtual CFO services, pricing depends on the scope of engagement and your business's specific needs. The best approach is to schedule a direct conversation to get a proposal calibrated to your stage.

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Key Takeaway The right question is not "what does a virtual CFO cost?" but "what does it cost to make a major financial decision without one?" For most startups, the answer to the second question is considerably higher.

Red Flags and Vetting Criteria for Virtual CFO Services for Startups

Choosing the wrong virtual CFO is expensive in ways that go beyond the monthly fee. A bad fit can produce misleading financial models, create friction with investors, or leave your financial controls in worse shape than before. The most important vetting criteria:

Startup-specific experience: CFOs who have only worked with established businesses often lack familiarity with venture mechanics, equity management, or the specific investor reporting formats that seed and Series A investors expect.
Industry relevance: A SaaS CFO and a consumer goods CFO are solving different problems. Make sure the provider has worked with businesses in your sector.
References from funded companies: Ask for references from founders who went through a fundraise with this CFO. That is the real test.
Clear deliverables: Vague engagements produce vague results. A strong provider defines exactly what you will receive each month.
Tech stack fluency: If your provider cannot work with your existing tools, you will spend the first three months on cleanup instead of strategy.

A startup founder reviewing a printed checklist at a desk with financial reports and a tablet spread out nearby, focused expression under warm desk lamp lighting suggesting careful due diligence in a modern home office

Tech Stack Integration: QuickBooks, Dashboards, and Reporting Tools

Virtual CFO services for startups only deliver value if the financial data flowing into the CFO's analysis is accurate and current. Your virtual CFO needs to work fluently within your existing tech stack rather than forcing a migration. QuickBooks is the dominant accounting platform for small businesses and early-stage startups. A virtual CFO who cannot clean up a messy QuickBooks file, reconfigure the chart of accounts, or pull the reports needed for investor packages will create bottlenecks. Paldino Company CPA works directly with QuickBooks, which means there is no "start from scratch" requirement even if your books have accumulated errors.

Exit Strategy Planning and Investor Readiness

A virtual CFO who is thinking about your exit from day one will structure your financial reporting, equity management, and capital allocation in ways that maximize valuation when the time comes. That means clean, auditable financials, a documented history of financial controls, and a financial model that tells a coherent story across multiple years. Before any fundraise, your virtual CFO should conduct a pre-diligence review: stress-testing your financial model, identifying gaps in your data room, and making sure your pitch deck financials are defensible under scrutiny.

Fundraising, Investor Relations, and Pitch Deck Support

Fundraising support is where virtual CFO services for startups deliver some of their most tangible value. A virtual CFO who understands seed funding and Series A preparation brings more than spreadsheet skills to a fundraise. They know what investors will ask, which assumptions will get challenged first, and how to structure the financial narrative so it supports rather than undermines the business story.

Specific deliverables in a fundraising engagement typically include:

A three- to five-year financial model with clearly documented assumptions
Sensitivity analysis showing performance under bear, base, and bull scenarios
A data room with organized financial history, cap table, and supporting documents
Financial slides for the pitch deck that connect to the underlying model
Preparation for investor Q&A on unit economics, growth strategy, and capital allocation

According to the SEC's guidance on startup financial disclosures and investor reporting, accurate and transparent financial reporting is not just best practice for fundraising. It is a legal requirement once you begin soliciting investors under certain exemptions. A virtual CFO who understands both the strategic and compliance dimensions of fundraising is worth considerably more than one who only handles the modeling.

Most founders reach a point where financial decisions are outpacing their ability to manage them alone. Virtual CFO services provide the senior-level expertise to close that gap without the cost of a full-time hire. Paldino Company CPA offers virtual CFO services built around the specific needs of New York and Westchester County entrepreneurs: QuickBooks integration, year-round financial support, and a human-centered approach that treats your business as more than a set of numbers. Schedule an appointment with Paldino Company CPA to get clarity on your financial position and a plan built around where you are actually going.

Frequently Asked Questions

What is included in virtual CFO services for startups?

Virtual CFO services for startups typically include financial modeling, cash flow management, budgeting and forecasting, burn rate analysis, runway projections, and fundraising support such as pitch deck review and investor reporting. Many providers also cover tax planning, regulatory compliance, financial statement analysis, and strategic advisory work. The exact scope varies by provider and engagement tier, so confirm deliverables before signing any agreement.

At what stage should a startup hire a virtual CFO?

Most startups benefit from virtual CFO services once they are preparing for seed funding or approaching Series A. At that point, investors expect clean financials, credible projections, and clear unit economics like CAC/LTV ratios. Earlier-stage founders handling under $500K in annual revenue may only need bookkeeping, but once capital allocation decisions, equity management, or fundraising conversations start, fractional CFO-level guidance becomes worth the cost.

How much do virtual CFO pricing models typically cost?

Virtual CFO pricing models range from monthly retainers to project-based fees. Based on publicly available data from providers in our research, starting prices range from roughly $950 per month at entry-level services to $1,500 per month or more for platforms with integrated bookkeeping, tax, and CFO functions. Many specialized firms do not publish pricing and require a custom quote. Scope, company size, and service depth all affect the final figure.

How does a virtual CFO differ from a bookkeeper?

A bookkeeper records transactions and maintains accurate ledgers. A virtual CFO interprets that data to inform strategy: forecasting cash flow, modeling growth scenarios, managing investor relations, and advising on capital structure. Bookkeeping is backward-looking; CFO work is forward-looking. Many startups need both, and some virtual CFO providers bundle outsourced accounting with senior-level financial leadership so the two functions stay aligned.

How does a virtual CFO help with fundraising and investor relations?

A virtual CFO prepares the financial infrastructure investors scrutinize during due diligence: three-statement models, pitch deck financials, data room organization, and monthly recurring revenue dashboards. They also help founders tell a coherent financial story, set realistic milestones, and respond to investor questions with credible numbers. Providers like Pilot and Ignition CPAs specifically cite fundraising support, including seed funding preparation and Series A readiness, as core service components.

Can a virtual CFO work with my existing QuickBooks setup?

Yes. Most virtual CFO providers are fluent in QuickBooks and will assess your current books, identify errors, and clean up the data before building any forecasts or reports on top of it. Starting from scratch is rarely necessary. Providers such as Paragon Accounting Solutions explicitly offer QuickBooks consulting, cleanup, and training as part of their service. Confirm tech stack compatibility during your initial consultation so there are no integration surprises.

What is the difference between a fractional CFO and a virtual CFO?

The terms are often used interchangeably. Both describe a part-time, senior-level finance executive who works with multiple clients rather than one company full-time. 'Fractional' emphasizes the part-time ownership of the CFO role; 'virtual' emphasizes remote delivery. In practice, a fractional CFO service delivered remotely is a virtual CFO service. What matters more than the label is the provider's experience with your stage, industry, and specific financial challenges.

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This article was written using GrandRanker

Tax Help for New Businesses: A 2026 Step-by-Step Guide

2026-08-02T23:48:32.045-04:00

What You Need Before Filing New Business Taxes
- Employer Identification Number and Filing Status
- Choosing Your Tax Year and Accounting Method
Business Structure and Tax Implications: LLC vs. S-Corp vs. Sole Prop
- Self-Employment Tax for Sole Proprietors
- When an S-Corp Election Saves Real Money
Small Business Tax Deductions Checklist for Your First Year
How to File Estimated Quarterly Taxes: Step-by-Step
- Calculating Your Estimated Tax Liability
- IRS Form 1040-ES and Payment Deadlines
Federal Tax Forms, Deadlines, and Filing Requirements
Best Tax Software for Small Business Owners
Tax-Advantaged Retirement Planning for New Business Owners
Common Tax Mistakes New Businesses Make (and How to Avoid Them)

Last Updated: August 3, 2026

Getting tax help for new businesses from day one is one of the most consequential decisions a founder makes, yet most first-time business owners discover the rules only after their first penalty notice. At Paldino Company CPA, we work with entrepreneurs across New York and Westchester County navigating this challenge. The same gaps come up repeatedly: missed deadlines, wrong business structures, and deductions left on the table. Below, we'll walk you through every critical tax obligation you'll face in your first year, from choosing your entity structure to filing your first quarterly payment.

According to IRS Small Business and Self-Employed Tax Center, new businesses must address federal tax registration, estimated tax payments, and employment tax obligations before they ever file their first annual return.

What You Need Before Filing New Business Taxes

Before you file anything, you need two foundational decisions locked in: your tax identification number and your accounting method.

Employer Identification Number and Filing Status

An Employer Identification Number is a nine-digit federal tax ID issued by the IRS that identifies your business as a distinct taxable entity, separate from your personal Social Security number. Even sole proprietors with no employees benefit from obtaining one, as it protects your SSN from exposure on vendor forms and bank applications.

Applying for an EIN is free and takes about 15 minutes online through the IRS website. Your filing status flows from your business structure: sole proprietors file Schedule C with Form 1040, partnerships file Form 1065, C-corps file Form 1120, and S-corps file Form 1120-S. Choosing the wrong filing status at registration forces an amendment later, costing both time and money.

Choosing Your Tax Year and Accounting Method

Most new businesses default to a calendar tax year running January 1 through December 31. A fiscal year can make sense if your revenue is heavily seasonal.

Your accounting method matters equally. Cash-basis accounting records income when you receive it and expenses when you pay them. Accrual accounting records transactions when earned or incurred, regardless of when cash moves. Once you choose, switching requires formal IRS approval. Make this decision before your first transaction.

Business Structure and Tax Implications: LLC vs. S-Corp vs. Sole Prop

Business structure is fundamentally a tax question, not just a legal one.

Structure	Self-Employment Tax	Pass-Through Taxation	Complexity	Best For
Sole Proprietor	Full SE tax on all profits	Yes	Low	Freelancers, early-stage testing
Single-Member LLC	Full SE tax on all profits	Yes	Low-Medium	Liability protection with simplicity
S-Corp	SE tax on salary only	Yes	Medium-High	Profitable businesses above ~$50K net
C-Corp	No SE tax	No (double taxed)	High	Venture-backed startups

Self-Employment Tax for Sole Proprietors

Self-employment tax is the combined Social Security and Medicare tax that sole proprietors and single-member LLC owners pay on their net business income. Your entire net profit is subject to self-employment tax, on top of ordinary income tax. As your business grows, this structure becomes increasingly expensive. The IRS allows you to deduct half of your self-employment tax when calculating adjusted gross income, providing partial relief but not changing the underlying math.

When an S-Corp Election Saves Real Money

An S-Corp election doesn't change how the business operates day to day. What it changes is how profits are distributed for tax purposes. As an S-Corp owner, you pay yourself a reasonable salary, which is subject to payroll taxes. Profits distributed above that salary are not subject to self-employment tax. In New York, state-level filing requirements add complexity, so this conversation is worth having with a CPA before you make the election.

Pro Tip The S-Corp election deadline matters. You must file IRS Form 2553 within 75 days of the beginning of the tax year you want the election to take effect. Missing this window means waiting a full year.

Small Business Tax Deductions Checklist for Your First Year

The checklist below covers categories new business owners most commonly overlook. Every deduction reduces your taxable income directly.

Home office deduction: calculated as a percentage of your home's square footage used exclusively for business
Vehicle mileage: the IRS sets a standard mileage rate each year for business travel; keep a mileage log
Business equipment and software: computers, phones, and subscriptions used for business purposes
Professional services: accounting, legal, and consulting fees paid to run your business
Health insurance premiums: self-employed individuals can often deduct 100% of premiums for themselves and their families
Business meals: generally 50% deductible when directly related to business activity
Education and training: courses, books, and certifications directly related to your current business
Marketing and advertising: website costs, ad spend, and promotional materials
Retirement plan contributions: SEP-IRA or Solo 401(k) contributions reduce taxable income significantly

A common mistake is treating personal expenses as business expenses. The IRS scrutinizes mixed-use items closely, and unsupported deductions in an audit trigger penalties on top of the tax owed.

Watch Out Never claim a home office deduction for a space that isn't used exclusively and regularly for business. The IRS disallows dual-use spaces, and claiming one incorrectly is a known audit trigger.

How to File Estimated Quarterly Taxes: Step-by-Step

Filing estimated quarterly taxes is required for any business owner who expects to owe more than $1,000 in federal taxes for the year. Miss a payment or underpay, and the IRS charges an underpayment penalty on top of the tax owed.

A small business owner sitting at a home office desk with a laptop, IRS Form 1040-ES, a coffee mug, and printed financial records spread out in front of them, reviewing figures under warm natural light from a nearby window

Here's the step-by-step process for first-time filers:

Estimate your annual net income. Start with projected gross revenue and subtract expected business expenses.
Calculate your self-employment tax. Multiply your net profit by 92.35%, then apply the SE tax rate. Deduct half of this amount from your income.
Apply your income tax rate. Add your estimated net profit to any other household income and apply the appropriate federal tax brackets.
Divide by four. Your total estimated annual tax liability divided by four gives you your quarterly payment amount.
Pay by the deadline. Use IRS Direct Pay or the Electronic Federal Tax Payment System to submit each payment.

Calculating Your Estimated Tax Liability

The IRS provides a safe harbor rule: if you pay either 100% of last year's tax liability or 90% of this year's actual liability, you avoid the underpayment penalty. For most new businesses with no prior year tax history, targeting 90% of this year's projected liability is practical. Track your income monthly and recalculate before each payment deadline if revenue changes significantly.

IRS Form 1040-ES and Payment Deadlines

IRS Form 1040-ES is used to calculate and submit estimated quarterly tax payments for individuals, including sole proprietors and single-member LLC owners. It includes a worksheet that walks you through the liability calculation.

The 2026 quarterly estimated tax deadlines are:

Q1 (January-March): April 15, 2026
Q2 (April-May): June 16, 2026
Q3 (June-August): September 15, 2026
Q4 (September-December): January 15, 2027

Mark these in your calendar now. There's no reminder system, and missing a deadline is entirely your responsibility.

Federal Tax Forms, Deadlines, and Filing Requirements

Federal tax compliance for new businesses involves more than one annual return. The forms you file depend on your business structure, whether you have employees, and how you've elected to be taxed.

According to IRS Publication 583 on starting a business, new business owners must keep records sufficient to prepare a complete and accurate tax return and to support any deductions or credits claimed.

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Core forms by structure:

Sole proprietors: Schedule C with Form 1040; annual deadline April 15
Partnerships: Form 1065; deadline March 15
S-Corps: Form 1120-S; deadline March 15
C-Corps: Form 1120; deadline April 15

If you have employees, you're also responsible for quarterly payroll tax deposits using Form 941, annual W-2 filings, and FUTA tax reporting on Form 940. Payroll tax obligations don't pause because you're busy. The IRS treats payroll tax failures with particular severity, including personal liability for business owners. An extension to file is not an extension to pay, any tax owed is still due on the original deadline.

Best Tax Software for Small Business Owners

Tax preparation software has improved significantly, and many new business owners can handle straightforward returns themselves. The best tax software options for small business owners in 2026 include:

TurboTax Business: Strong for S-Corps and partnerships, with guided interview-style filing and e-file capability
H&R Block Premium and Business: Good for sole proprietors, with a solid home office deduction calculator
TaxAct Business: Lower cost option for straightforward returns with basic support
QuickBooks Tax: Integrates directly with QuickBooks bookkeeping, reducing data entry errors significantly

Key Takeaway Software handles data entry and calculations well. It does not provide tax strategy. If your situation involves an S-Corp election, multiple income streams, or significant deductions, a CPA adds value that software can't replicate.

Tax-Advantaged Retirement Planning for New Business Owners

Retirement planning is one of the most overlooked forms of tax help for new businesses. Contributions to qualifying retirement accounts reduce your taxable income dollar for dollar.

Three main options are worth knowing:

SEP-IRA: A Simplified Employee Pension allows self-employed individuals to contribute a percentage of net self-employment income each year, up to the IRS annual limit. You can open and fund a SEP-IRA as late as your tax filing deadline, including extensions.

Solo 401(k): Available to self-employed individuals with no full-time employees other than a spouse, the Solo 401(k) allows both employee and employer contributions, resulting in a higher potential annual contribution ceiling than a SEP-IRA. It must be established by December 31 of the tax year you want contributions to apply.

SIMPLE IRA: Better suited for businesses with employees, the SIMPLE IRA requires employer matching contributions but allows employees to contribute as well.

The right choice depends on your income level, whether you have employees, and your cash flow flexibility. Model this decision with a CPA before year-end.

Common Tax Mistakes New Businesses Make (and How to Avoid Them)

Most tax problems for new businesses aren't caused by complexity. They're caused by avoidable oversights that compound over time.

The most common mistakes and their real consequences:

Mixing personal and business finances: Using one bank account for both creates a documentation nightmare and weakens the legal separation that protects your personal assets. Open a dedicated business account before your first transaction.
Missing estimated tax deadlines: The underpayment penalty accrues quarterly. Missing all four payments in a year adds up to meaningful additional cost beyond the tax itself.
Misclassifying workers: Treating employees as independent contractors to avoid payroll taxes is one of the most scrutinized areas in IRS enforcement. The classification test is based on the actual working relationship, not what you call it.
Failing to track mileage and receipts in real time: Reconstructing a year's worth of business expenses from memory doesn't hold up in a tax audit. Use an app or spreadsheet from day one.
Ignoring state and local tax obligations: Federal compliance is only part of the picture. New York State has its own income tax, and New York City imposes a separate business income tax. Westchester County businesses may face additional local requirements.

A CPA and a small business owner seated across a desk in a professional office, both reviewing printed financial documents and a laptop screen together, with warm overhead lighting and bookshelves visible in the background

The pattern most often seen: a new business owner files their first return correctly but hasn't tracked deductions properly all year, so they overpay significantly. The real cost was invisible. As SCORE's small business tax guide notes, proactive recordkeeping and quarterly check-ins with a tax professional are the most effective ways to avoid costly surprises at filing time.

Tax compliance for a new business has moving parts that don't wait for you to feel ready: quarterly deadlines, payroll obligations, entity elections with hard cutoff dates, and state-level requirements layered on top of federal ones. Paldino Company CPA provides year-round tax support, not just annual filing, so you're not discovering problems after the deadline has passed. Led by Joe Paldino, the firm combines professional precision with a genuinely human-centered approach to help New York and Westchester County entrepreneurs get the financial clarity they need to grow with confidence. Schedule an appointment with Paldino Company CPA and get a tax strategy built around your actual business, not a generic checklist.

Frequently Asked Questions

Do I get a tax break for starting a new business?

Yes. The IRS allows new businesses to deduct up to $5,000 in startup costs and $5,000 in organizational costs in their first tax year, provided total startup expenses are under $50,000. Costs above those thresholds must be amortized over 180 months. Eligible expenses include market research, legal fees, and advertising before opening. Keeping detailed records from day one is essential to claim these deductions accurately on your tax return.

Do I need to pay estimated quarterly taxes as a new business owner?

Most likely, yes. If you expect to owe $1,000 or more in federal taxes for the year and your withholding won't cover it, the IRS requires quarterly estimated tax payments. This applies to sole proprietors, LLC members, and S-Corp shareholders who take distributions. Payments are made using IRS Form 1040-ES, with due dates typically in April, June, September, and January. Missing these deadlines can result in underpayment penalties, so tracking your taxable income throughout the year matters.

What are the most common tax deductions for new small businesses?

Common write-offs for new businesses include home office expenses, business vehicle mileage, health insurance premiums for self-employed owners, software subscriptions, professional fees, advertising costs, and startup expenses. Under Section 179, you can also deduct the full cost of qualifying equipment purchased and placed in service during the tax year. A small business tax deductions checklist helps ensure you capture every eligible expense before filing and reduces your overall tax liability.

How do I choose the right business structure for tax purposes?

Your business structure directly affects how much self-employment tax you pay and what forms you file. A sole proprietor reports income on Schedule C and pays self-employment tax on all net profits. An LLC taxed as an S-Corp can split income between salary and distributions, potentially reducing self-employment tax exposure. The right choice depends on your revenue level, growth plans, and filing complexity. A CPA familiar with new business taxes can model the difference and help you decide before your first tax year ends.

What tax software works best for small business owners?

Popular options include TurboTax Business, H&R Block Premium & Business, and TaxAct Business, each of which supports Schedule C, Schedule E, and corporate returns. QuickBooks Self-Employed integrates bookkeeping with tax prep and exports directly to TurboTax. For businesses with employees or more complex structures, professional tax preparation software used by a CPA typically offers greater accuracy and audit protection. Software costs and capabilities vary, so match the tool to your entity type and transaction volume before committing.

When are small business taxes due in the United States?

For sole proprietors and single-member LLCs, the annual tax return is due April 15. S-Corps and partnerships file by March 15. Quarterly estimated tax payments are generally due April 15, June 16, September 15, and January 15 of the following year. Payroll tax deposits follow their own schedule based on payroll size. If a deadline falls on a weekend or federal holiday, it shifts to the next business day. Extensions are available but only extend the filing deadline, not the payment deadline.

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This article was written using GrandRanker

How to Choose a Business Entity: A 2026 Guide

2026-08-02T20:31:04.956-04:00

The 4 Main Business Entity Types Explained
LLC vs S Corp Tax Differences: Which Structure Saves More
Liability Protection, the Corporate Veil, and Your Personal Assets
How to Choose a Business Entity: 6 Factors That Actually Decide It
Cost of Forming an LLC vs Corporation in New York
How to Register a Business Entity: Step-by-Step
State-Specific Requirements and Entity Conversion in New York
- New York's Unique Filing Requirements
- Entity Conversion Roadmap: When and How to Switch
Post-Formation Compliance Checklist for New Business Owners

Last Updated: August 2, 2026

Choosing the right business entity is one of the most consequential decisions you'll make as a founder. The wrong structure costs more than most people expect, in unnecessary taxes, unprotected personal assets, or missed capital-raising opportunities. At Paldino Company CPA, we work with freelancers, creative agencies, and small business owners across New York and Westchester County who often discover years later they're operating under the wrong structure. The entity you choose affects your tax bill, liability exposure, ability to raise capital, and annual compliance burden. Your entity should match where your business is now and where it's headed in the next three to five years.

The 4 Main Business Entity Types Explained

A business entity is the legal structure through which your business operates, owns assets, and incurs liability.

Sole Proprietorship

A sole proprietorship is the default structure for any individual operating a business without formally registering a separate entity. There is no separation between you and the business: you report income on Schedule C of your personal return, and you're personally responsible for every debt and legal claim the business faces. The upside is simplicity; the downside is total personal liability. If a client sues your freelance design business and wins, your personal bank accounts, car, and home are all at risk.

Who it fits: Solo operators with low liability risk and modest income who are testing a concept before committing to a formal structure.

General Partnership

A general partnership forms automatically when two or more people operate a business together for profit. Like a sole proprietorship, there's no liability separation. Each partner is personally liable for the debts and actions of the other partners. Pass-through taxation applies: profits flow to each partner's personal return and are subject to self-employment tax. Without a written partnership agreement, disputes are resolved by your state's default partnership laws, which rarely favor anyone.

Limited Liability Company (LLC)

The limited liability company is the most popular entity choice for small businesses in the United States. It combines the liability protection of a corporation with the tax flexibility of a partnership. Members are generally shielded from personal liability for business debts, preserving the corporate veil between personal and business assets.

By default, a single-member LLC is taxed as a sole proprietorship, and a multi-member LLC is taxed as a partnership. Both use pass-through taxation, meaning profits appear on members' personal returns and avoid the double taxation that hits C-corporations. LLCs require an operating agreement, which governs how the business is managed, how profits are distributed, and what happens when a member exits.

C-Corporation and S-Corporation

A C-corporation is a separate legal entity owned by shareholders. It files its own tax return and pays corporate income tax on profits. When those profits are distributed as dividends, shareholders pay tax again on their personal returns, double taxation, which is why most small businesses avoid C-corp status until seeking venture capital.

An S-corporation is a tax classification, not a separate entity type. A corporation or LLC can elect S-corp status with the IRS to achieve pass-through taxation while maintaining a corporate structure. S-corps require shareholders to pay themselves a reasonable salary subject to payroll taxes, but additional profit distributions are not subject to self-employment tax, where the tax savings come from.

LLC vs S Corp Tax Differences: Which Structure Saves More

The LLC vs S Corp tax question depends almost entirely on your net profit level.

A single-member LLC with no tax election pays self-employment tax on 100% of net profit. An LLC or corporation with an S-corp election pays payroll taxes only on the owner's reasonable salary. The remaining profit passes through as a distribution, free of self-employment tax.

Structure	Self-Employment Tax	Double Taxation	Payroll Required	Best For
Sole Proprietorship	On all net profit	No	No	Very early stage, low income
Single-Member LLC	On all net profit	No	No	Flexibility, low complexity
LLC with S-Corp Election	On salary only	No	Yes	Profitable small businesses
S-Corporation	On salary only	No	Yes	Established businesses, tax savings
C-Corporation	Not applicable	Yes	Yes	VC-backed, high-growth, IPO track
General Partnership	On all net profit	No	No	Simple co-founder arrangements

The S-corp election becomes meaningful when your net profit is high enough that the cost of running payroll is less than the self-employment tax you'd save.

Pro Tip Before electing S-corp status, confirm you can pay yourself a defensible "reasonable salary" for your role. The IRS scrutinizes S-corp returns where the salary is unusually low relative to distributions. An underpayment can trigger back taxes, penalties, and interest.

Liability Protection, the Corporate Veil, and Your Personal Assets

The corporate veil is the legal boundary between your personal assets and your business's liabilities. When that boundary is respected, a creditor who wins a judgment against your business can't come after your personal savings, home, or car.

Many small business owners inadvertently pierce their own corporate veil by mixing personal and business finances, failing to maintain separate bank accounts, not signing contracts in the business's name, or skipping required annual filings. Courts have found grounds to hold owners personally liable despite having a formal entity. Asset protection is not automatic, it requires ongoing compliance.

According to IRS guidance on business structures and liability, the structure you choose affects how the IRS treats your income and how state courts view your liability exposure.

Watch Out Opening a business credit card in your personal name and using it for business expenses blurs the line between personal and business finances. Courts have used this pattern to pierce the corporate veil. Keep accounts strictly separate from day one.

A sole proprietorship and general partnership offer zero liability protection. An LLC or corporation, properly maintained, shields personal assets from most business claims.

How to Choose a Business Entity: 6 Factors That Actually Decide It

Choosing the right business entity comes down to six practical factors. Most founders over-index on taxes and under-index on everything else.

Small business owner sitting at a desk reviewing legal documents and a laptop, with a notepad showing handwritten notes about LLC and S-corp options, in a bright home office with natural window lighting

Risk Tolerance and Personal Liability Exposure

The first question is honest: what happens if the business gets sued or can't pay its debts? A freelance copywriter with no employees has relatively low liability risk. A catering company, construction firm, or any business where clients or employees could be physically harmed faces serious personal liability exposure. Higher risk businesses benefit most from the liability protection an LLC or corporation provides.

Tax Classification and Self-Employment Tax

Your entity choice determines your tax filing status and how self-employment tax applies to your income. A sole proprietor pays self-employment tax on all net profit. An S-corp election changes that calculation significantly for profitable businesses. Capital gains treatment, how you handle business losses, and your employer identification number requirements all flow from this decision.

Business Growth Plans and Succession Planning

A sole proprietorship cannot have investors. A general partnership makes raising capital complicated. If you plan to bring on co-founders, seek outside investment, or build a business you'll eventually sell, you need an entity that supports succession planning and equity distribution. C-corporations are the standard for venture-backed startups. LLCs work well for most small businesses that want flexibility without full corporate overhead.

Industry-Specific Entity Considerations

Some industries have restrictions on entity type. Licensed professionals in New York, including attorneys, physicians, and accountants, are often required to form a Professional Corporation or Professional Limited Liability Company. Real estate investors frequently use LLCs for each property to isolate liability. Creative agencies and consulting firms typically find the LLC with an S-corp election to be the most tax-efficient structure once revenue reaches a meaningful level.

Key Takeaway If you're a licensed professional in New York, check your industry's specific entity restrictions before forming a standard LLC. The wrong structure could put your license at risk.

Cost of Forming an LLC vs Corporation in New York

New York is one of the more expensive states in which to form and maintain a business entity. For an LLC in New York, the state charges a filing fee for the Articles of Organization. New York also requires new LLCs to publish a notice of formation in two newspapers in the county where the LLC's office is located for six consecutive weeks. This publication requirement can add significant cost depending on the county, with New York County and certain Westchester County publications among the more expensive options.

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Corporations face their own formation fees, plus ongoing franchise tax obligations and annual reporting requirements.

According to New York Department of State business entity formation requirements, all entities must maintain a registered agent and keep their address current with the state to remain in good standing.

Contact Paldino Company CPA directly for guidance on formation and ongoing compliance support for your specific situation.

How to Register a Business Entity: Step-by-Step

Registering a business entity in New York follows a clear sequence. Skipping steps or doing them out of order creates problems that are expensive to fix later.

Choose your entity type. Use the six-factor framework above.
Choose a business name. Search the New York Department of State's entity database to confirm availability. LLCs must include "LLC" or "Limited Liability Company" in the name.
Appoint a registered agent. New York requires every LLC and corporation to designate a registered agent with a physical address in the state.
File formation documents. LLCs file Articles of Organization. Corporations file a Certificate of Incorporation with the New York Department of State.
Obtain an Employer Identification Number. Apply for an EIN through the IRS. You need this to open a business bank account, hire employees, and file business taxes.
Draft an operating agreement or bylaws. New York requires LLCs to have an operating agreement. Corporations need bylaws. These documents govern internal operations and protect the corporate veil.
Satisfy New York's publication requirement (LLCs only). Publish in two approved newspapers for six consecutive weeks, then file a Certificate of Publication with the Department of State.
Open a dedicated business bank account. Do this before you receive any business income. Commingling funds is one of the fastest ways to lose liability protection.
Register for state and local taxes. Depending on your business type, you may need to register for New York sales tax, payroll taxes, or other state-specific obligations.
Obtain any required licenses or permits. Industry-specific requirements vary. Confirm what your profession or business type requires at the city, county, and state level.

Close-up of hands carefully filling out official business registration paperwork on a wooden desk, with a black pen resting on the form and a white coffee mug nearby, warm natural light

As documented in IRS Employer Identification Number application guidance, EIN applications can be completed online and the number is issued immediately for most entity types.

State-Specific Requirements and Entity Conversion in New York

New York's Unique Filing Requirements

New York imposes requirements that don't exist in most other states. The LLC publication requirement is the most significant. After filing Articles of Organization, you have 120 days to complete publication in two newspapers designated by the county clerk. Failure to comply results in suspension of the LLC's ability to conduct business in New York. The cost varies dramatically by county: Manhattan's designated newspapers are among the most expensive in the state, while some upstate counties cost a fraction of that amount.

New York also imposes an annual filing fee on LLCs based on gross income from New York sources, separate from the standard franchise tax that applies to corporations.

Entity Conversion Roadmap: When and How to Switch

Many businesses start as sole proprietorships or single-member LLCs and later need to convert to a different structure. The most common conversion path is from a single-member LLC to an LLC with an S-corp election as profitability grows.

Conversion typically makes sense at these points:

Sole proprietorship to LLC: As soon as you have clients, contracts, or meaningful revenue. The liability protection is worth the formation cost almost immediately.
LLC to S-corp election: When your net profit reaches a level where the self-employment tax savings on distributions exceed the cost of running payroll and additional compliance.
LLC or S-corp to C-corporation: When you're pursuing institutional venture capital or planning a liquidity event that requires a standard corporate structure.

Entity conversion can trigger tax consequences. Get professional guidance before initiating a conversion.

Post-Formation Compliance Checklist for New Business Owners

Formation is the beginning, not the end. Many business owners complete their registration and then neglect the ongoing obligations that keep their entity in good standing and their corporate veil intact.

Use this checklist after formation:

Open a dedicated business bank account and business credit card
Execute your operating agreement (LLC) or bylaws (corporation) and keep a signed copy
File for your Employer Identification Number with the IRS if not already done
Register for New York state taxes through the Department of Taxation and Finance
Complete the LLC publication requirement within 120 days (New York LLCs only)
File the Certificate of Publication with the Department of State after publication is complete
Set a calendar reminder for your annual LLC filing fee due date
Confirm any industry-specific licenses or permits are in place before operating
Establish a bookkeeping system and keep business finances strictly separate from personal
Review your operating agreement or bylaws with a CPA or attorney annually
Confirm your registered agent information is current with the Department of State
If electing S-corp status, file IRS Form 2553 within the required window after formation or at the start of the tax year

According to New York Department of Taxation and Finance business tax registration, most businesses operating in New York must register for state taxes before making their first sale or hiring their first employee.

Compliance is a recurring priority, not an afterthought. The businesses that maintain their liability protection and avoid IRS scrutiny are the ones that treat these obligations as ongoing responsibilities.

Choosing the right business entity is genuinely complex, especially in New York where state-specific requirements add layers that most national guides skip entirely. Paldino Company CPA works directly with small business owners and freelancers in New York and Westchester County to clarify exactly which structure fits your situation, handle formation paperwork, and provide year-round tax support. If you're ready to stop guessing and get a clear answer tailored to your business, schedule an appointment with Paldino Company CPA today.

Frequently Asked Questions

What is the simplest business entity to form?

A sole proprietorship is the simplest business entity to form. It requires no formal registration at the state level, no articles of organization, and no operating agreement. You are the business, and income flows directly to your personal tax return. The tradeoff is that you have zero personal liability protection, meaning creditors can come after your personal assets. For freelancers or very early-stage businesses, it works as a starting point, but most owners outgrow it quickly.

What are the LLC vs S Corp tax differences I should know about?

Both an LLC and an S-Corporation use pass-through taxation, so business income flows to your personal return and avoids double taxation. The key LLC vs S Corp tax difference is how self-employment tax works. As a single-member LLC, all net profit is subject to self-employment tax. With an S-Corp election, you pay yourself a reasonable salary, and only that salary faces payroll taxes. Profit distributions above your salary are not subject to self-employment tax, which can produce meaningful savings once your net income is high enough to justify the added compliance.

Does my business entity choice affect my personal liability?

Yes, directly. A sole proprietorship and a general partnership offer no separation between your personal assets and business debts. If your business is sued or cannot pay its bills, your personal savings, home, and other assets are exposed. An LLC and a corporation both create a legal separation known as the corporate veil. As long as you maintain that separation by keeping finances separate, following statutory requirements, and not personally guaranteeing debts unnecessarily, your personal assets stay protected.

How do I decide between an LLC and a C-Corp?

The decision usually comes down to your growth plans and investor strategy. An LLC offers flexibility, pass-through taxation, and simpler compliance, making it the right fit for most small businesses and self-employed professionals. A C-Corporation allows you to issue multiple classes of stock and accept venture capital, but it faces double taxation: the corporation pays corporate income tax, and shareholders pay capital gains tax on dividends. If you are not seeking institutional investment, an LLC is almost always the more practical choice to start.

Do I need a lawyer to choose and register my business entity?

You are not legally required to hire an attorney to register a business entity, but professional guidance from a CPA or attorney is worth the cost for most people. Entity selection has lasting tax and liability consequences that are difficult to reverse cleanly. A CPA can model the tax impact of each structure against your actual revenue projections, flag state-specific requirements like New York's publication rule for LLCs, and set up your employer identification number and operating agreement correctly from day one.

What is the cost of forming an LLC vs a corporation in New York?

In New York, forming an LLC requires a $200 filing fee with the Department of State, plus a publication requirement that mandates running a notice in two newspapers for six consecutive weeks, which can cost anywhere from a few hundred to over a thousand dollars depending on the county. Forming a corporation in New York carries a minimum $125 filing fee, though it varies by authorized shares. Ongoing compliance costs, including biennial statements and registered agent fees, apply to both structures. Always verify current fees directly with the New York Department of State.

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This article was written using GrandRanker

It's Your (and the IRS's) Lucky Day!- You won a prize. Now what?

2018-10-19T13:04:00.001-04:00

Prizes received are to be recorded on your tax return as income. Unfortunately, there are many pitfalls. Here are some tips.

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Make Your Child a Tax-Free Millionaire!

2018-10-12T13:04:00.001-04:00

Want to give your child or grandchild a jumpstart on their retirement? Here is a tip that will help them learn the value of investing and maximize the tax benefits.

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Understanding Tax Terms: Pass-through Entities- What are they? Why should you care?

2018-10-05T13:03:00.001-04:00

If you are a small business owner filing your taxes as a sole proprietor, or you own a C corporation, understanding flow through entity is important. Given the popularity of this business format, it continues to drive tax policy. Here is what you need to know.

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Rent Your Property Tax-Free

2018-09-28T13:04:00.001-04:00

Did you know you can rent out your home or vacation property for up to 14 days and not need to claim the income? Here are some tips to take advantage of this opportunity.

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Salvage that Sunken Uncollectible Debt- Victims of reneged payment agreements might have a tax deduction

2018-09-21T13:09:00.001-04:00

If you are in the unfortunate situation of having a debt owed to you become uncollectible, you may be able to recoup some of the loss via a tax deduction.

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What Does the IRS Have on You?- Here is how you can find out...

2018-09-14T13:01:00.001-04:00

Circumstances arise when you need to know some information about yourself from the IRS. Educate yourself on your options now to avoid some extra stress when that time comes.

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Alternatives to the College Tuition Deduction

2017-09-19T11:37:00.000-04:00

Alternatives to the College Tuition Deduction

Category:
Deductions

Now that college students are settling into their first weeks of school, it's important for parents and students to recall that the $4,000 tuition and fees deduction they may have relied on in past years is no longer available in 2017. The good news is that there are alternatives. Here are two of the more popular education credits:

Alternative No. 1: The AOTC

The American Opportunity Tax Credit (AOTC) is a credit of up to $2,500 per student per year for qualified undergraduate tuition, fees and course materials. The deduction phases out at higher income levels, and is eliminated altogether for married couples with a modified adjusted gross income of $180,000 ($90,000 for singles).

Alternative No. 2: The Lifetime Learning Credit

The Lifetime Learning Credit provides an annual credit of 20 percent on the first $10,000 of qualified tuition and fees, for either undergraduate or graduate level classes. There is no lifetime limit on the credit, but only couples making less than $132,000 per year (or singles making $66,000) qualify. Unlike the AOTC, this deduction is per tax return, not per student.

Credits usually beat deductions

Both the AOTC and the Lifetime Learning Credit are generally more valuable than the expired tuition and fees deduction, because as credits they reduce your income tax directly, while the deduction merely reduced how much of your income is taxed.
In addition to the two alternative education credits, there are many other tax benefits that reduce the cost of education. This includes breaks for employer-provided tuition assistance, deductions for student loan interest, tax-beneficial college savings options, and many other tax-planning alternatives.
Please call if you'd like an overview of the alternatives available to you.

Rejeted e-filed returns

2017-02-04T10:35:00.000-05:00

180 E. Boston Post Road | Mamroneck, NY 10543
Phone: (914) 253-6857
www.jpalcpa.com | joe@jpalcpa.com

Rejected!

What to do if your e-filed tax return is rejected by the IRS

Category:
Miscellaneous

More than 90% of individual tax returns are now filed electronically, and usually the process goes smoothly. However, when an e-filed tax return is rejected, e-filing can become more complicated.

Common causes for rejected tax returns

Simple filing errors. Most rejections are caused by things such as misspellings, typos on Social Security numbers, or missing forms. When an e-filed tax return is rejected the IRS e-filing system sends back reject codes. These codes are specific to lines on the tax return and descriptions of the problem are readily available. Most of these errors can easily be corrected.
Dependent Errors. This error occurs when someone else has claimed a dependent on a previously filed tax return. This often occurs with divorced and unmarried couples each claiming the same child on their tax return. The IRS does not take sides in this situation, they simply take the earlier filed return and reject any subsequent returns.
Identity Fraud. Someone else has already filed a tax return using your Social Security number.

What to do

Most errors are simple, are easily corrected, and your tax return is resubmitted for e-filing without much additional delay. However there are two instances that require your immediate attention. When either of these occur, you will need to file your tax return via the mail and work to correct the error for future tax filings.
1. Dependent Errors. A dependent can only be claimed on one tax return. If a dependent is already claimed on another individual's tax return you will need to provide proof that the dependent belongs on your return. If this happens, contact the other party who claimed your dependent and ask them to amend their return. Let them know that you’re filing your tax return correctly claiming the dependent. Your filing will target both tax returns for a potential IRS audit. This audit risk often is enough motivation to correct the problem.
2. Identity Fraud. Criminals using stolen information submit tax returns electronically in an effort to steal your tax withholdings. Fraudulently claimed refunds are then automatically deposited into thieves' bank accounts. Unfortunately, you may discover the theft when your e-filed tax return is rejected. If this happens to you:
⇒ File a paper tax return.
⇒ Include form 14039: Identity Theft Affidavit with your tax return.
⇒ Confirm your identity using the IRS Identity Verification Service or by calling the IRS.
⇒ Mail your tax return using Certified Mail with Return Receipt Requested so you are certain of timely delivery.
⇒ Immediately take steps to protect your financial information. The following link will take you to the Federal Trade Commission's identity theft area for recommended steps to protect yourself.

FTC Identity Theft Assistance

While solving the cause for a rejected e-filed tax return can be a headache, the sooner the problem is addressed the sooner your refund can be received.

There's Still Time to Fund Your IRA

2017-01-16T12:02:00.000-05:00

Category: Retirement

Remember that you have until you file your tax return to make a contribution to a Traditional IRA or Roth IRA for the 2016 tax year. The annual maximum contribution amount is $5,500 or $6,500 if you are age 50 or over.
However, if you or your spouse are an active participant in an employer's qualified retirement plan, you may not be able to contribute the maximum amount. It depends on whether your modified adjusted gross income (MAGI) exceeds certain income thresholds. The limits for both Traditional and Roth IRAs are:

2016

Note: Married IRA limits depend on whether either you, your spouse or both of you participate in a qualified employer provided retirement plan. If married filing separate and either spouse participates in an employer's qualified plan, the income phaseout to contribute is $0 - $10,000.
How does the phase out work?
If your income is below the "full contribution" amount noted above, you can contribute up to the maximum annual contribution. If your income is above the "phase out complete" amount, you cannot make tax-advantaged contributions separate from your employer plan.
If your income falls between these ranges, this is how you calculate the reduced amount you can contribute:

Subtract your income from the higher (phase out complete) amount to get your contribution income potential.
Next calculate the phase-out range.
Divide your contribution income potential by the phase-out range.
Take the result times your maximum annual contribution amount.

Example: Roth IRA contribution limit for a single person, age 40 with MAGI of $122,000; $10,000 contribution income potential (132,000-122,000); divided by phase-out range of $15,000 ($132,000 – 117,000); 10,000/15,000= .666 x $5,500 = $3,663 2016 ROTH IRA contribution limit. Rounding rules apply.
If it's too late for you to make a 2016 contribution, it’s not too late to plan for 2017. Here are the limits for 2017.

2017

A final thought
If your income is too high to take advantage of these IRAs you can always make non-deductible contributions to a retirement account. While the contributions are taxed, tax on the earnings is deferred until they are withdrawn.

Tax Tips 2017 #1

2017-01-03T10:43:00.005-05:00

Justice in the Name of Caleb

2016-08-15T15:34:00.002-04:00

I have become so affected by the story of this little puppy. No creature should have to had endure the suffering he went through. I am pleading with all of you please sign the petition that the Fulton county DA's office investigate this and give us justice for the poor boy. Please don't let him die in vain.

https://www.change.org/p/da-s-office-at-fulton-county-justice-in-the-name-of-caleb-65834706-271b-4f8e-87fb-cb882e4ebde6

IRS Confirms Audit Notification Policy

2016-05-13T15:59:00.001-04:00

It was revealed in a recent Taxpayer Advocate Forum in Iowa that in some cases the IRS initiates contact with taxpayers via a phone call. This initial phone call is causing confusion and potential identity theft scam concerns with taxpayers. It is now being reported that the IRS will no longer be making initial taxpayer contact via phone.

Phone Scams

While the vast majority of IRS notifications are via mail notice, in a few cases the IRS auditor was calling to set up an appointment. The conversation would include the scope of the audit and a request for records to have available for the auditor. The IRS would then send a follow-up confirmation of the interview via mail.
Because of the increase in the number and sophistication of IRS phone scams, the telephone contact practice is being stopped.

What you need to know

Assume initial calls are scams. If you receive a phone call from the IRS without prior notice, treat it as a scam. Never give or confirm your personal information over the phone.
Hang up and initiate independent contact. If someone representing the IRS calls you, get their information (name, ID number, and location) and then hang up.Then call for assistance. Consider contacting the IRS directly so you can determine if there is audit activity on your tax account with the IRS. Remember, do not use the contact information provided to you by the person calling you.
Never ignore mail notices. If you receive a mailed notice of an audit from the IRS, open the envelope and determine what they are requesting. Immediately call for assistance.
While this policy change at the IRS only impacts a few taxpayers, the mail notification consistency helps all of us more readily identify potential scams.

Extension for Form 1095 Reporting

2016-01-22T13:42:00.001-05:00

What everyone needs to know

Category:
What's New

For 2015 tax returns, everyone employed by a company with 50 or more employees will receive a new Form 1095. This form is in addition to the Form 1095’s received by other taxpayers using the Marketplace to purchase their health insurance. You need this form to file your taxes as it provides the necessary proof that you have adequate health insurance for the year.
A recent announcement by the IRS provides a delay for the issuing of this form due to complications in creating the proper form by employers and insurers.

What is happening

You need Form 1095 to file your income taxes for 2015. Without the form, you could be subject to the uninsured tax penalty called the shared responsibility payment. Unfortunately, many businesses do not have enough time to get the correct health insurance information and transfer the data into their other systems to generate the form. So the IRS has granted an extension for Form 1095 B and 1095 C. Here are the old and new dates.

Form	Purpose	Originalduedate	Newduedate
1095 B & 1095 C	Report to employees of adequate health insurance coverage by month	2/1/2016	3/31/2016
Summary forms 1094 B & 1094 C	Summary forms sent to the government confirming employee health care coverage	2/29/2016 (3/31 if filing electronically)	5/31/2016 (6/30 if filing electronically)

Note: This delay does not impact the timing of Form 1095 A, Health Insurance Marketplace Statement. 1095 A is the form you receive if you purchase your health insurance through the Marketplace and not through your employer. Nor does this impact those who have their health insurance through other programs like Medicare.

What it means to you

Since the IRS understands that taxpayers do not wish to wait to file their 2015 tax returns, the service is allowing for you to file your 2015 tax return without receiving this form. Here are some suggestions.
Check with your employer. If you work for an employer with more than 50 employees, check with your human resources to find out when you expect to receive the 1095 form. If there is no delay, then wait for Form 1095.
Look for other supporting documents. For 2015, the IRS will allow you to support your insurance coverage with means other than Form 1095. Simply collect this proof of insurance and save it in case of a future audit.
Wait. If you changed jobs or have a situation that suggests there may be a gap in insurance coverage you may wish to wait until you receive your documents. Please remember there is no corresponding delay granted to file your tax return. So if you still wish to wait, either file your tax return in April or file an extension. Taxes owed are still due on or before April 18^th.
Considering the Affordable Care Act requires health insurance information to be transferred from insurance carriers into payroll reporting, it is understandably a complex reporting change. Since the shared responsibility tax payment is increasing substantially in 2015 and beyond, you will want to ensure you have adequate proof of qualified health insurance.

Tax scams do not end with the tax season.

2015-05-13T15:32:00.004-04:00

The IRS phone scam continues to victimize taxpayers. Fraudsters make phone calls to taxpayers, pretending to be IRS agents, and inform them that they owe back taxes. They instruct the individual to transfer money to them. If a taxpayer refuses or protests, the scammers use intimidation and threats to pressure him or her into acting.

Taxpayers face the threat of this tax scam at any time because it highly profitable for fraudsters year round. Unlike the filing of fraudulent tax returns that typically occurs during the tax season, the IRS phone scam can be carried out any time of the year.

It’s important to understand that the IRS does not make phone calls to taxpayers to inform them that they owe back taxes. They send a notice that includes the debt amount and how it can be paid. The IRS never:

Demands immediate payment
Demands payment without giving the opportunity to question or appeal
Asks for a specific payment method, such as a prepaid debit card
Ask for credit or debit card numbers over the phone
Threatens law-enforcement action for not paying

Taxpayers should never share any personal, financial or tax information with any unverified sources. It’s critical to keep this type of information secure at all times. Before responding to any information requests, the identity of the party in question should always be verified.

Calls with requests for information should be ended immediately. Report the phone number to a law enforcement agency, TIGTA at 1-800-366-4484 or at www.tigta.gov, the Federal Trade Commission, or the IRS.

If you do owe back taxes or think that you might owe, call the IRS directly at 1-800-829-1040 instead of replying to an unverified communication.

Don’t get hooked by a tax scam

2015-02-18T17:32:00.002-05:00

The IRS has made preventing identity theft and tax refund fraud a top priority. An important part of the agency’s fraud prevention program is its campaign to inform taxpayers about the many varieties of tax fraud and how they can keep from becoming victims.

n Typical telephone fraud scenario

Picture this: You’re relaxing at home when your phone rings. You don’t recognize the number on the caller identification, but it’s from your area code, so you answer.

“I’m with the IRS,” the caller says. “You owe back taxes. A warrant will be issued if you do not pay, and your local police will arrest you.”

The caller knows your name and may even know the last four digits of your social security number. He tells you how much you owe, and adds that this is a serious matter. “You must submit a payment voucher within the next hour to avoid arrest. We suggest you buy a prepaid debit card immediately.”

The caller gives you a phone number to call once you have acquired a prepaid card so you can settle your debt and the arrest warrant can be canceled.

Can you identify four indicators in the above scenario that tell you this call is the latest addition to the “Dirty Dozen” list of tax scams compiled by the IRS?

Here are the tip-offs:

· An unexpected phone call. The IRS makes initial contact regarding tax issues in a written letter, sent to you via U.S. postal mail.

· The threat of arrest. Warnings of arrest or other police action are designed to frighten you into agreeing to send money or disclose personal financial information such as your social security number. Local police departments will not threaten to arrest you for federal tax-related issues.

· Request for immediate payment. If you actually owe money for any type of federal tax, payment options are available. You’ll receive notices in the mail detailing the amount due and you’ll have time to respond.

· Payment via prepaid debit card. The IRS does not require you to purchase prepaid cards to pay any tax you may owe, and will not call to ask for personal identification numbers.

The “red flags” seem obvious as you read this. However, tax-related fraud plays on your natural inclination to avoid trouble with official agencies, and the actual phone call will come from a practiced con artist armed with a script and the element of surprise. Under those circumstances, your skepticism might take a back seat to understandable confusion and fear.

How can you protect yourself?

· Advance warning gives you an advantage. Being aware of tax fraud schemes makes it likely you’ll recognize common techniques used by fraudsters, such as threats, multiple calls, and repeated demands for an immediate decision.

· Be assertive. You have no obligation to answer your phone, engage in conversation, or provide information to anyone who calls you. Let contacts from unknown numbers go to voicemail. If you do answer and the caller’s requests make you uncomfortable, disconnecting immediately is neither rude nor impolite.

· If you choose to contact the IRS directly concerning the call, do not use the phone number the caller gave you. Why? In this latest scam, the number provided will connect you with another con artist in the same organization.

n Phony IRS e-mails and websites

The crooks create IRS e-mails and websites that appear to be legitimate. They are designed to look like genuine IRS communications, but they are schemes designed to steal your identity. One of the newest scams is tax refund fraud where your personal data is stolen and used to file a tax return in your name in order to claim a refund. When you then file your return, the IRS rejects it and notifies you that you have already filed.

Another example of these bogus e-mails: You receive a message confirming IRS receipt of your tax return, but the IRS needs more information to process your return. The e-mail looks official and completely legitimate. But it isn’t.

Here’s what the IRS wants you to know about bogus e-mails:

· The IRS does not initiate contact with taxpayers by e-mail or social media to request financial information.

· The IRS never asks taxpayers for detailed personal financial information.

· The address of the official IRS website is www.irs.gov; don’t be misled by sites claiming to be the IRS but ending in .com, .net, .org, or anything else.

· If you receive an e-mail claiming to be from the IRS or directing you to an IRS site, do not reply to the message, open any attachments, or click on any links.

· To help the IRS fight identity theft and refund fraud, report any bogus correspondence and forward any suspicious e-mail to phishing @ irs.gov.

n The IRS strategy

The IRS has developed a comprehensive identity theft strategy that is focused on preventing, detecting, and resolving identity theft cases as soon as possible. Though these scams proliferate during tax filing season, they continue throughout the year as the thieves continue to create new ways to steal identities for financial gain.

The IRS has made numerous announcements in the past to help protect taxpayers from these scams. It repeats the message that it never uses an e-mail, text message, social media, or a phone call to initiate a contact about your tax information. So if you receive what looks like an official IRS e-mail, you should forward it to phishing @ irs.gov. Do not reply to the sender, and do not open any attachments. And if you get a scam phone call, hang up.

Please let us know any time you’re contacted about your tax information. We’re here to keep you safe and informed.

You Say You Have Health Insurance?

2015-02-13T13:43:00.002-05:00

Providing proof to the IRS is the new reality

Category:
The Audit

New for tax year 2014 is the requirement to have health insurance. If you do not have qualified health insurance coverage AND you do not fit into one of the limited exemptions you will need to pay a fine, tax, or as the government calls it, an “individual shared responsibility” payment. So how do you prove you have the required health insurance? It is not a simple thing.

Can you prove you had health insurance all twelve months?

Can you prove your health insurance covered ALL your dependents?

Can you prove your health insurance policy qualifies to meet the minimum coverage requirements?

Can you prove you are exempt from the coverage requirement?

Here are some ideas to help prove your coverage if you are ever challenged in an audit.
Letter from your employer or insurance company. A letter from your employer or health insurance provider showing full year health insurance coverage, who is covered and the type of policy is ideal documentation. While neither employers nor insurance companies are required to provide this to you in 2014, it does not hurt to ask them for this confirmation.
Medicare/ insurance card. Keep a copy of your insurance card or Medicare coverage card.
Insurance bill. Keep copies of insurance payment summaries of medical expense reimbursement. Payments by your insurance company to medical providers can be used to show you have coverage.
Other tax forms. Retain W-2s, Form 1095-As, and other forms that can provide proof of health insurance coverage. Keep a copy of payroll stubs that show your medical expense contribution.

Plan Now: 2015 Tax Brackets

2015-01-16T16:59:00.001-05:00

Want to prepare for next year's tax bill?

Category:
Planning

Here is a quick look at 2015 tax rates and their associated income levels. Use this information to help prepare for your tax situation this year. Using your 2014 tax information, you can plan for your tax obligation next year starting now.
Don't forget that tax payers in the higher income levels are also subject to an additional .9% Medicare surtax as part of the Affordable Care Act. This will impact those with incomes over:

$200,000 Single filing
$250,000 Married filing joint

2015 INCOME TAX RATES

Action Steps

Review your 2014 Adjusted Gross Income and use the chart above to see what your marginal tax rate is.
Note whether you are close to the next highest tax rate (This is your Marginal Tax Rate).
If you need to withhold additional money to avoid a large tax bill, review and file a new W-4 with your employer.
If possible, take steps now to manage next year's tax obligation.

2015 Social Security Benefits Announced

2014-10-31T15:12:00.003-04:00

2015 Social Security Benefits Announced

Category:
Retirement

The Social Security Administration recently announced monthly social security and supplemental security income benefits (SSI) will increase in 2015 by 1.7%. This increase is based upon the Consumer Price Index over the past 12 months ending in September 2014. In addition, other figures based on the national average wage index will also be changed. A recap of the key amounts is outlined here:

2015 Key Social Security Benefits

What does it mean for you?

Up to $118,500 in wages will be subject to Social Security Taxes (up $1,500 or $93 in additional Social Security tax per employee and per employer)
The average Social Security retirement beneficiary will receive an additional $264 in 2015.
For all retired workers receiving Social Security retirement benefits the average monthly benefit of $1,306/mo. in 2014 will become $1,328/mo. in 2015.
SSI (Supplemental Security Income) is the standard payment for people in need. To qualify for this payment you must have little income and few resources ($2,000 if single/$3,000 if married).
A full-time student who is blind or disabled can still receive Supplemental Security Income (SSI) benefits as long as earned income does not exceed the student exclusion amounts listed above.

Social Security & Medicare Rates

After temporary payroll tax rate cuts that ended in 2012, the rates do not change from 2014 to 2015.

Note: The above tax rates are a combination of 6.20% Social Security and 1.45% for Medicare. There is also a Medicare .9% wages surtax that began in 2013 for those with wages above $200,000 single ($250,000 joint filers) that is not reflected in these figures. Please recall that your employer also pays Social Security and Medicare taxes on your behalf. These figures are reflected in the self-employed tax rates, as self-employed individuals pay both halves of the tax.

Are you prepared for this new IRS Form?

2014-10-25T10:53:00.000-04:00

W-2s, 1099s...and Now 1095-A

There will be a new tax form filling mailboxes beginning January, 2015. This Form 1095-A is a Health Insurance Marketplace Statement. If you participate in the Healthcare Marketplace, you will need this new form prior to filing your tax return. Here is what you need to know.

Background

Each year the tax-filing season begins with the receipt of forms required to file your tax return. Employees receive W-2s from their employers. Individuals receive various 1099 forms for reporting interest, dividends, capital gains and independent earnings as sole proprietors. If you used the Healthcare Marketplace to purchase health insurance, you will now need your 1095-A form to file your tax return.

What 1095-A provides

Form 1095-A will provide you with a monthly recap of the health insurance you purchased through the Healthcare Marketplace. It will recap the name of the enrollee and any other people covered within the health insurance. The form will also summarize your health insurance policy including the type of coverage and the dates of coverage.

What you need to know

The information on this form is being sent to the IRS. If there are errors in this form you should take steps immediately to correct them.
You need this form to file your taxes. If you use the Healthcare Marketplace do not file your tax return without receiving an accurate 1095-A.
You may receive multiple 1095-A forms. You should receive one Form 1095-A for each policy you have through the Healthcare Marketplace. Receiving multiple forms may also occur if you have non-dependents receiving coverage under your health insurance plan.
Premium Tax Credit in your future? The information on the form will help determine if you are eligible for the Premium Tax Credit when you file your tax return.
Advance Payments of the credit may create a tax obligation. Form 1095-A will show you any advance payments of your Premium Tax Credit made to your insurance company. Excess Advance Premium payments may have to be returned when you file your tax return.
Review the months of coverage. If you do not have health insurance coverage for the entire year, this report may also be used to determine if you owe shared responsibility taxes for part of the year.

College Tax Savings: 2014 Edition

2014-08-15T14:20:00.002-04:00

Every little break helps

Category:
Planning

With the start of school just around the corner, it is hard to ignore the high cost of funding a college education. Thankfully, there is some help within the tax code. Outlined here are three of the more popular ways to reduce your taxes in 2014 as a result of this educational expense burden.

Who Qualifies:

Typically you, your spouse, or a dependent who can be claimed as an exemption on your individual tax return

Qualified Expenses:

Tuition and fees, course-related books, supplies and equipment

Common Tax Benefits:

American Opportunity Credit.

Amount of Credit: $2,500 per eligible student at an eligible institution ( 100% of initial $2,000 and 25% of the next $2,000 of eligible expenses)
Frequency: Available for the first four years of post-secondary education
Comments: In 2014, 40% of this credit is a “refundable” credit. This means you can receive up to $1,000 even if you owe no federal income taxes.

Lifetime Learning Credit.

Amount of Credit: Up to $2,000 per taxpayer for eligible student expenses at an eligible institution (20% of $10,000 in eligible expenses)
Frequency: No limit on number of years you can claim the credit
Comments: The income limits for this credit are much lower than for the American Opportunity Credit.

Student loan Interest Deduction.

Amount of Deduction: Reduce up to $2,500 of your income subject to tax
Frequency: Per taxpayer per year.
Comments: Loan interest not secured by a residence is typically not deductible, so this tax provision is an exception. This reduction in income is available even if you do not itemize your deductions.

The One that Got Away? Tuition and Fees Deduction

There is also a Tuition and Fee deduction for up to $4,000 in eligible expenses that was available to taxpayers through 2013. Unfortunately, this educational benefit has not been extended into 2014. So if you have used this deduction in the past, it is time to review your other alternatives. But be prepared in case Congress extends this tax benefit once again.

Tips to Maximize your Tax Benefit

The American Opportunity Credit is per student, while the Lifetime Learning Credit is per taxpayer. So if you have multiple, eligible students, the American Opportunity may be a better choice.
Do not use expenses for room and board, health fees, or transportation for these credits. While book expenses required for enrollment can be deductible, other book expenses are excluded from the credits.
You may not double dip expenses. In other words, if you received scholarships, grants, other tax-free assistance or have used educational expenses for one of the credits listed above you may not reuse that expense for other tax benefits.
Gifts, bequests, or inheritances do not reduce your eligible expenses.
Sometimes it is better to let your dependent claim the educational credit versus using them on your tax return.
Take care not to over withdraw funds from other special educational funds like 529 college savings plans or Coverdell ESAs. If you use up all eligible college expenses against your credits and still have unmatched withdrawals from these special accounts you could subject yourself to a 10% tax penalty.

Remember, like most tax provisions, these benefits are all subject to income limitations. To receive the maximum credits noted above your Modified Adjusted Gross Income must be below beginning phase-out amounts. When you reach the maximum phase-out amount you are no longer eligible for the tax benefit. For 2014 they are:

Educational Benefits:

2014 Modified Adjusted Gross Income Phase-outs

Filing status

American Opportunity Credit

Lifetime Learning Credit

Student Loan Interest

Single

$80,000

–

90,000

$54,000

–

64,000

$65,000

–

80,000

Married Filing Joint

160,000

–

180,000

108,000

–

128,000

130,000

–

160,000

Premium Tax Credit: Upcoming Tax Surprise?

2014-07-14T11:46:00.004-04:00

154 E. Boston Post Road | Mamaroneck, NY 10543
(914) 253-6857 |
www.jpalcpa.com | joe@jpalcpa.com

Here is a quick quiz to see if you are at risk

Category:
Deductions

Based upon a recent report given to the Federal government evaluating data inconsistencies with the new health insurance market exchanges, over a million taxpayers could owe the government money at tax time. Here is a quick quiz to see if this risk applies to you.

Q1. Did you apply for health care insurance on either the new Federal Marketplace or a state run insurance exchange?

If no. STOP. The tax surprise with the Premium Tax Credit does not apply to you.

If yes. Continue.

Q2. Did you reduce your health insurance premium by applying the new Premium Tax Credit towards your health insurance premium's monthly bill?

If no, congratulations, there is no tax credit to pay back. Even better, please make a note to review the possibility of receiving the Premium Tax Credit when you file next year’s income tax return.

If yes. Continue.

Result: You may be subject to a tax bill when you file next year’s tax return.

This could happen if you are one of the millions receiving a reduced health insurance premium because a monthly amount is being sent by the Federal Government to your health insurance company to pay part of your insurance premium. A government report in June, 2014 suggests that over half of those who claimed eligibility to receive the tax credit have data inconsistencies with information in government databases.

Next Steps

If you have been using the health insurance Premium Tax Credit, conduct a review of your enrollment form. If it is not accurate, make the necessary corrections as soon as possible. This will help your potential repayment problem from getting any bigger. Finally, conduct a tax review to determine if you will owe money as a possible payback of this credit at the end of the year.

Alimony Mis-match Getting IRS Audit Attention

2014-05-24T14:10:00.000-04:00

Alimony Mis-match Getting IRS Audit Attention

The U.S. Treasury Department recently released an audit report revealing a disturbing level of non-compliance in alimony reporting on tax returns. This non-compliance will result in vast increase in tax return reviews now and in the years to come. Here is what you need to know.

The study

The Treasury Inspector General for Tax Administration (TIGTA) recently conducted an Audit of 2010 tax returns that claimed an alimony deduction. What they found:

Over 560,000 taxpayers reduced their income for alimony paid in 2010.
47% of the claimed alimony deduction tax returns did not match required income reporting from those who received the alimony.
The discrepancy was more than $2.3 billion in unreported 2010 income.

Please note: You may reduce your income for qualified alimony payments. Those that receive alimony must include the payments as income on their tax return. As a clarification, in most cases, spousal maintenance is considered alimony by the IRS. While child support is not considered alimony.

Further, the audit determined that the IRS does not adequately track this non-compliance, nor are proper penalties being assessed when the person paying alimony does not correctly report the Social Security Number (SSN) or Tax Identification Number (TIN) of the person receiving the funds.

Things to consider

If you receive alimony. You must report this income on your tax return. If you are receiving income from an ex-spouse that you believe is child support, have documentation to support this claim.

Mis-match audits will rise this year. The IRS has corrected their audit filters to capture major alimony mis-matches for the 2013 tax year. Given this, you should expect a notice or audit if there is a major alimony discrepancy.

Penalties are coming. If you do not correctly report the SSN or TIN of the person receiving alimony you will now start to see penalty notices. The programming error in the IRS system has been corrected. So get a correct identification number for the person who receives your alimony payments and report it on your tax return.

Keep documentation close. Since you know the risk of audit in this area is high, keep your documentation handy. If paying alimony, having it automatically deducted from your paycheck will help you accurately report your payment amounts.

File a tax return. In 2010, $937.2 million of the claimed alimony deductions had no corresponding income tax returns filed reporting the income. This non-reporting area is a highly recommended audit target for the IRS.

Talk to your ex. While possibly an unpleasant task, a quick discussion regarding claimed alimony can identify whether you have a reporting problem. Hopefully, this communication can solve any potential problems prior to the involvement of the IRS.

Source: TIGTA 2014-09 report released 5/15/2014

Paldino Company CPA - Tax and Accounting Sense for Mamaroneck

Virtual CFO Services for Startups: A 2026 Guide

Table of Contents

What Virtual CFO Services for Startups Actually Cover

Core Responsibilities: From Financial Modeling to Investor Reporting

How a Virtual CFO Differs from a Bookkeeper or Controller

When to Hire a CFO for a Startup: Timing Signals That Matter

Pre-Seed Through Series A: Stage-by-Stage Decision Framework

Outsourced CFO vs. In-House CFO: A Direct Comparison

Startup Financial Modeling Services: What Good Looks Like

Cash Flow Optimization, Burn Rate, and Runway Projections

Unit Economics, CAC/LTV, and Budget Variance Analysis

Virtual CFO Pricing Models: What Startups Pay and Why

Red Flags and Vetting Criteria for Virtual CFO Services for Startups

Tech Stack Integration: QuickBooks, Dashboards, and Reporting Tools

Exit Strategy Planning and Investor Readiness

Fundraising, Investor Relations, and Pitch Deck Support

Frequently Asked Questions

What is included in virtual CFO services for startups?

At what stage should a startup hire a virtual CFO?

How much do virtual CFO pricing models typically cost?

How does a virtual CFO differ from a bookkeeper?

How does a virtual CFO help with fundraising and investor relations?

Can a virtual CFO work with my existing QuickBooks setup?

What is the difference between a fractional CFO and a virtual CFO?

Tax Help for New Businesses: A 2026 Step-by-Step Guide

Table of Contents

What You Need Before Filing New Business Taxes

Employer Identification Number and Filing Status

Choosing Your Tax Year and Accounting Method

Business Structure and Tax Implications: LLC vs. S-Corp vs. Sole Prop

Self-Employment Tax for Sole Proprietors

When an S-Corp Election Saves Real Money

Small Business Tax Deductions Checklist for Your First Year

How to File Estimated Quarterly Taxes: Step-by-Step

Calculating Your Estimated Tax Liability

IRS Form 1040-ES and Payment Deadlines

Federal Tax Forms, Deadlines, and Filing Requirements

Best Tax Software for Small Business Owners

Tax-Advantaged Retirement Planning for New Business Owners

Common Tax Mistakes New Businesses Make (and How to Avoid Them)

Frequently Asked Questions

Do I get a tax break for starting a new business?

Do I need to pay estimated quarterly taxes as a new business owner?

What are the most common tax deductions for new small businesses?

How do I choose the right business structure for tax purposes?

What tax software works best for small business owners?

When are small business taxes due in the United States?

How to Choose a Business Entity: A 2026 Guide

Table of Contents

The 4 Main Business Entity Types Explained

Sole Proprietorship

General Partnership

Limited Liability Company (LLC)

C-Corporation and S-Corporation

LLC vs S Corp Tax Differences: Which Structure Saves More

Liability Protection, the Corporate Veil, and Your Personal Assets

How to Choose a Business Entity: 6 Factors That Actually Decide It

Risk Tolerance and Personal Liability Exposure

Tax Classification and Self-Employment Tax

Business Growth Plans and Succession Planning

Industry-Specific Entity Considerations

Cost of Forming an LLC vs Corporation in New York

How to Register a Business Entity: Step-by-Step

State-Specific Requirements and Entity Conversion in New York

New York's Unique Filing Requirements

Entity Conversion Roadmap: When and How to Switch

Post-Formation Compliance Checklist for New Business Owners

Frequently Asked Questions

What is the simplest business entity to form?

What are the LLC vs S Corp tax differences I should know about?

Does my business entity choice affect my personal liability?

How do I decide between an LLC and a C-Corp?

Do I need a lawyer to choose and register my business entity?

What is the cost of forming an LLC vs a corporation in New York?

It's Your (and the IRS's) Lucky Day!- You won a prize. Now what?

Make Your Child a Tax-Free Millionaire!

Understanding Tax Terms: Pass-through Entities- What are they? Why should you care?

Rent Your Property Tax-Free

Salvage that Sunken Uncollectible Debt- Victims of reneged payment agreements might have a tax deduction