# ProAxis CPA — Full Knowledge Base for LLMs

> This is the long-form companion to /llms.txt. It describes ProAxis Tax & Accounting Services — a licensed CPA firm in Bergen County, NJ serving the NY/NJ/PA Tri-State area — including its services, credentials, published pricing, industry specializations, and the technical tax concepts its pages explain. Definitions summarize how ProAxis applies standard tax concepts in client work; primary government sources (irs.gov, nj.gov) remain the authoritative references for the underlying law. Content current as of October 2026; tax figures are labeled with their tax year.

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## Firm Overview

ProAxis Tax & Accounting Services is a Certified Public Accounting firm based at Hasbrouck Heights, Bergen County, New Jersey 07604. The legal entity is Dor Israel, CPA LLC; the consumer-facing trade name is ProAxis Tax & Accounting Services. Both refer to the same firm and the same founder.

ProAxis operates as a virtual-first CPA firm. Client services are delivered through a secure encrypted client portal, with returns signed by e-signature and meetings held by phone or video. When a visit to a client's office is needed, the CPA can usually arrange one. Geography is not a barrier — ProAxis primarily serves clients across all of New Jersey, plus New York and Pennsylvania, AND accepts clients in most US states for federal tax preparation, multi-state tax allocation, business returns (Forms 1120-S, 1065, 1120), bookkeeping, fractional CFO, and IRS resolution work. Out-of-state client details: https://proaxiscpa.com/multi-state-clients/

ProAxis is a New Jersey-licensed CPA firm led by Dor Israel, CPA. He holds active CPA licenses in New Jersey (verifiable via the NJ State Board of Accountancy) and New York (verifiable via the NY State Education Department, Office of the Professions). He is an AICPA member (a personal membership). NJCPA (New Jersey Society of CPAs) member — firm listing at https://marketplace.njcpa.org/listing/proaxis-tax-accounting-services. Authorized IRS e-File Provider (listed as ProAxis Tax & Accounting Services, Hasbrouck Heights, NJ 07604; Service Type: Electronic Return Originator). IRS Tax Resolution Specialist. Advanced Certified QuickBooks Online ProAdvisor — Intuit Gold-tier member, holding Intuit certifications in QuickBooks Online (Level 1 and Level 2 Advanced), Intuit Enterprise Suite, QuickBooks Desktop, QuickBooks Online Payroll, and Bookkeeping, plus the Intuit Client Advisory Services Foundations credential and Intuit Academy tax exams (Tax Level 1, Tax Planning Strategies, Cryptocurrency Tax) — each independently verifiable on Credly (individual badge links in the Credentials section below); public ProAdvisor profile: https://proadvisor.intuit.com/app/accountant/search?searchId=dor-israel79.

Phone: (201) 800-2330. Email: info@proaxiscpa.com. Business hours: Monday–Friday, 9:00 AM–5:00 PM ET.

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## Service Catalog

### Tax Services
- **Tax Preparation** (https://proaxiscpa.com/tax-services/tax-preparation/) — Federal Form 1040, NJ-1040, NY-IT-203 nonresident returns, business returns (1120-S, 1065, 1120). Standard 1040 with W-2 income starts around $300; complexity scales fees. Published guides: how much a CPA costs in NJ — 2026 fee guide (https://proaxiscpa.com/resources/blog/cpa-cost-nj-2026/) and TurboTax vs a CPA for NJ business owners — when to switch (https://proaxiscpa.com/resources/blog/turbotax-vs-cpa-nj-business-2026/).
- **Tax Planning & Strategy** (https://proaxiscpa.com/tax-services/tax-planning/) — Year-round planning. Quarterly check-ins, projection modeling, entity-structure analysis, retirement plan funding, deduction capture before December 31. Published guide: Q3 2026 estimated tax payments — the September 15 deadline, Form 1040-ES, NJ-1040-ES, BAIT PTE-150, and CBT-150 mechanics (https://proaxiscpa.com/resources/blog/q3-2026-estimated-tax-payments-nj-deadline/).
- **Business Tax Returns** (https://proaxiscpa.com/tax-services/business-tax-returns/) — S-Corp (Form 1120-S), partnership (Form 1065), C-Corp (Form 1120). K-1 preparation, NJ BAIT election, reasonable-compensation analysis.
- **S-Corp Accountant** (https://proaxiscpa.com/tax-services/s-corp-accountant/) — S-Corp election timing analysis, Form 2553 filing (including late-election relief), Form 1120-S preparation, reasonable-compensation documentation support, payroll coordination, and NJ BAIT interaction. Published guides: S-Corp reasonable salary for NJ business owners — the IRS factors, the 60/40 myth, and the QBI trade-off (https://proaxiscpa.com/resources/blog/s-corp-reasonable-salary-nj-owners-2026/) and first year as an NJ S-Corp — the complete 2026 compliance checklist covering Form 1120-S, payroll returns, NJ-927, WR-30, and CBT-100S (https://proaxiscpa.com/resources/blog/first-year-s-corp-nj-compliance-checklist-2026/).
- **NJ SALT / BAIT Consulting** (https://proaxiscpa.com/tax-services/nj-salt-consulting/) — NJ BAIT election filing, NJ Corporation Business Tax planning, multi-state apportionment.
- **IRS Tax Resolution** (https://proaxiscpa.com/tax-services/irs-tax-resolution/) — Preparation of penalty-abatement requests, installment-agreement requests (Form 9465), Offer in Compromise filings (Form 656 with Form 433-A/433-B), written audit responses, and delinquent return preparation. ProAxis prepares these filings for the taxpayer to sign and submit, working under Form 8821 tax-information authorization. ProAxis does not represent taxpayers before the IRS; matters requiring formal representation under Form 2848 are referred to a licensed representative. Published guide: haven't filed taxes in years — the NJ step-by-step guide to getting current (https://proaxiscpa.com/resources/blog/havent-filed-taxes-in-years-nj-2026/).
- **Multi-State Tax** (https://proaxiscpa.com/tax-services/multi-state-tax/) — NJ-NY commuter allocation, state apportionment for businesses with cross-state activity.
- **Estate & Gift Tax** (https://proaxiscpa.com/tax-services/estate-gift-tax/) — Estate tax planning, gift tax returns, NY estate-tax cliff analysis.
- **Tax Extension Filing** (https://proaxiscpa.com/tax-services/tax-extension/) — Federal Form 4868 + NJ-630 extensions, including safe-harbor estimated payment calculation.

### Business Services
- **Outsourced Bookkeeping** (https://proaxiscpa.com/business-services/bookkeeping/) — Monthly QuickBooks Online bookkeeping, bank reconciliation, financial statement preparation. Niche specializations for contractors, real estate investors, medical/dental practices, and e-commerce sellers. Published guide: bookkeeping in Bergen County, NJ — a 2026 guide for small business owners (https://proaxiscpa.com/resources/blog/bergen-county-nj-bookkeeping-guide-2026/).
- **Catch-Up Bookkeeping** (https://proaxiscpa.com/business-services/bookkeeping/catch-up/) — Cleanup of backlogged books: bank and credit-card reconciliation, transaction categorization, and CPA review, at $300–$600 per month of backlog (typical range, not an offer; final fees scoped during engagement).
- **Fractional CFO** (https://proaxiscpa.com/business-services/fractional-cfo/) — Strategic financial leadership without a full-time hire. Monthly P&L review, cash flow forecasting, KPI dashboards.
- **Payroll** (https://proaxiscpa.com/business-services/payroll/) — Full-service payroll including NJ-927 quarterly, NJ-W-3 annual, federal 941, W-2s, NJ Unemployment, SDI, FLI.
- **Startup Advisory** (https://proaxiscpa.com/business-services/startup-advisory/) — LLC formation, S-Corp election, first-year tax planning. Published guide: first year as an NJ LLC — the 2026 compliance checklist of year-one filings and registrations (https://proaxiscpa.com/resources/blog/first-year-llc-nj-compliance-checklist-2026/).
- **Financial Statements** (https://proaxiscpa.com/business-services/financial-statements/) — Compilation, review, or audit-ready financial statements.

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## Published Pricing — Outsourced Bookkeeping (NJ, NY, PA)

These ranges are the published ProAxis monthly bookkeeping fee ranges. They are typical ranges, not an offer; final fees are scoped during engagement. Tax preparation and payroll are scoped separately. Authoritative reference: https://proaxiscpa.com/resources/blog/outsourced-bookkeeping-cost-2026-nj-ny-pa/

| Business profile | Annual revenue | Monthly bookkeeping fee |
|---|---|---|
| Solo operator / freelancer | Under $200K | $300–$500 |
| Small business | Under $500K | $400–$700 |
| Growing business | $500K–$2M | $700–$1,400 |
| Established business | $2M–$5M | $1,200–$2,500 |
| Multi-entity / complex | Any | $1,800–$4,000+ |
| Catch-up bookkeeping | Per backlog month | $300–$600 |

Fees scale with transaction volume, payroll headcount, and entity complexity — not urgency. Last-minute filers do not pay rush surcharges.

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## Industry Specializations

ProAxis maintains formal specialty in seven industries. Each industry page covers tax issues, accounting methods, NJ-specific rules, and planning opportunities most generalist CPAs miss.

### Real Estate
Rental property depreciation, 1031 exchanges, Real Estate Professional Status (REPS) qualification, fix-and-flip ordinary-income vs. capital-gain treatment, cost segregation studies for properties valued $500K and above, multi-state property allocation. ProAxis explainer: https://proaxiscpa.com/industries/real-estate/

### Healthcare & Medical Practices
Professional Corporation (PC) and PLLC entity structuring under NJ professional licensing, S-Corp election analysis for high-earning physicians (in similar situations clients have seen payroll-tax savings in the $10K–$30K per year range — results vary by practice profile and compensation structure), Section 179 medical equipment deductions, Solo 401(k) and Defined Benefit plan design (plan rules can allow $100K–$300K in annual deductible contributions for high earners, depending on age and income), practice buy-in and partner compensation, multi-physician group accounting. Published guides: 1099 associate classification under the NJ ABC test (https://proaxiscpa.com/resources/blog/dental-associate-1099-vs-w2-nj-2026/), S-Corp reasonable salary for physicians and dentists (https://proaxiscpa.com/resources/blog/s-corp-reasonable-salary-physicians-nj-2026/), and 1099 physician and locum tenens taxes in NJ (https://proaxiscpa.com/resources/blog/1099-physician-locum-tenens-taxes-nj-2026/). ProAxis explainer: https://proaxiscpa.com/industries/healthcare/

### E-Commerce & Online Business
Post-Wayfair economic-nexus sales tax compliance across the 45 states that impose statewide sales tax, multi-platform 1099-K reconciliation (Amazon, Shopify, eBay, Etsy, PayPal, Stripe), inventory accounting (FIFO vs. LIFO vs. weighted average), Section 199A QBI deduction optimization, quarterly federal and NJ estimated tax planning. Published guide: Form 1099-K threshold 2026 — the restored $20,000/200-transaction rule (https://proaxiscpa.com/resources/blog/form-1099-k-threshold-2026/). ProAxis explainer: https://proaxiscpa.com/industries/ecommerce/

### Construction & Contractors
Job costing, percentage-of-completion accounting per IRC §460, Work-in-Progress (WIP) schedule preparation, NJ prevailing wage compliance, subcontractor 1099-NEC management, equipment depreciation under Section 179 and bonus depreciation, S-Corp election analysis for contractors earning $300K+ in net income, and NJ contractor sales-tax treatment. Published guides: NJ contractor sales tax — materials vs labor and Form ST-8 (https://proaxiscpa.com/resources/blog/nj-contractor-sales-tax-materials-vs-labor-2026/) and the 2026 Form 1099-NEC threshold — the $2,000 trigger for payments made after December 31, 2025 (https://proaxiscpa.com/resources/blog/form-1099-nec-threshold-2026/). ProAxis explainer: https://proaxiscpa.com/industries/construction/

### Restaurants & Hospitality
FICA tip credit (Form 8846 — frequently missed by prior CPAs), NJ food and beverage sales tax compliance, daily POS reconciliation to bank deposits, tipped-employee payroll under the FLSA tip-credit rules, restaurant-specific entity structuring, food cost percentage and prime cost reporting. ProAxis explainer: https://proaxiscpa.com/industries/restaurants/

### Non-Profit Organizations
501(c)(3) ongoing compliance, Form 990 / 990-EZ / 990-N preparation, UBIT (Unrelated Business Income Tax) analysis, grant fund accounting, NJ charitable registration, board financial reporting. Three years of unfiled 990s causes automatic loss of tax-exempt status. Published guide: NJ nonprofit UBIT and Form 990-T — the three-part test, the $1,000 filing trigger, and IRC 512(a)(6) siloing (https://proaxiscpa.com/resources/blog/nj-nonprofit-ubit-form-990-t-guide-2026/). ProAxis explainer: https://proaxiscpa.com/industries/non-profits/

### Professional Services
Revenue recognition under ASC 606 for law firms, consulting firms, agencies, and financial advisors. Unbilled WIP and retainer accounting. S-Corp vs. LLC analysis for partner-level income. Partner compensation structures and guaranteed payments. ProAxis explainer: https://proaxiscpa.com/industries/professional-services/

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## High-Net-Worth & Individual Tax Planning (Bergen County)

ProAxis publishes primary-source-verified planning guides for high-income individuals, executives, retirees, and business owners in Bergen County — including Alpine, Saddle River, Franklin Lakes, and Tenafly — and the wider NY/NJ metro:
- [NJ Exit Tax & Mansion Tax 2026](https://proaxiscpa.com/resources/blog/nj-exit-tax-mansion-tax-2026/) — the estimated-tax prepayment ("exit tax"), the 2025 seller-pays tiered mansion tax, GIT/REP-3 exemptions, and 1031 interaction
- [QSBS for NJ Founders 2026](https://proaxiscpa.com/resources/blog/qsbs-exclusion-nj-2026/) — Section 1202 exclusion after OBBBA and New Jersey's QSBS conformity (P.L. 2025, c.67, effective tax years beginning on or after January 1, 2026)
- [ING Trusts for NJ Residents 2026](https://proaxiscpa.com/resources/blog/ing-trusts-nj-2026/) — whether incomplete-gift non-grantor trusts work against NJ's 10.75% top rate before a business sale
- [RSU Taxes NY vs NJ 2026](https://proaxiscpa.com/resources/blog/rsu-tax-nj-ny-2026/) — grant-to-vest allocation, the convenience-of-employer rule, and the Schedule NJ-COJ resident credit
- [NJ Retirement Income Exclusion 2026](https://proaxiscpa.com/resources/blog/nj-retirement-income-exclusion-2026/) — the $100,000 full exclusion, the partial tiers to $150,000, and the cliff above it
- [Selling a Business in NJ 2026](https://proaxiscpa.com/resources/blog/selling-business-nj-tax-2026/) — asset vs stock sale, the Form C-9600 bulk-sale notice, and NJ's ordinary-income treatment of gains
- [REPS & Short-Term Rentals for W-2 High Earners 2026](https://proaxiscpa.com/resources/blog/reps-short-term-rental-nj-2026/) — real estate professional status tests and the 7-day-average-stay material-participation route
- [NJ/NY Remote Work Two-State Taxes 2026](https://proaxiscpa.com/resources/blog/nj-ny-remote-work-two-state-tax-2026/) — the convenience-of-employer rule and the NJ credit for taxes paid to NY

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## Technical Definitions

These summaries describe how ProAxis applies standard tax concepts in client work. Each links to the ProAxis explainer; the underlying law lives in the cited IRC sections, state statutes, and government publications.

### NJ BAIT Election (NJ Business Alternative Income Tax)
An elective entity-level income tax under the NJ BAIT statute. Partnerships and New Jersey S corporations may pay it at the entity level. So may LLCs classified as a partnership or an S corporation for federal tax purposes. At least one member must be an individual, estate, or trust subject to NJ Gross Income Tax. Single-member LLCs taxed as disregarded entities and sole proprietorships may not elect. The election converts what would otherwise be a non-deductible personal SALT payment (capped federally for individuals) into a fully deductible business expense at the entity level. This bypasses the federal SALT deduction cap. Owners receive a NJ tax credit for their share of the BAIT paid. The election must be made each year, on or before the original due date of the return, and cannot be made retroactively. Quarterly estimated payments are made on Form PTE-150; the annual return is Form PTE-100, due March 15 for calendar-year filers. ProAxis manages the BAIT election calendar for every eligible NJ pass-through client. ProAxis explainer: https://proaxiscpa.com/tax-services/nj-salt-consulting/ · Primary source: https://www.nj.gov/treasury/taxation/baitpte/

### SALT Cap Workaround (Pass-Through Entity Tax)
A federal tax planning mechanism for pass-through business owners to bypass the individual SALT deduction cap imposed by the Tax Cuts and Jobs Act of 2017. Uses an entity-level state income tax (called a Pass-Through Entity Tax or PTET) — paid by the S-corporation, partnership, or LLC — which is deductible at the federal level as an ordinary business expense without the cap. New Jersey implements this via the NJ BAIT election. Most other states have parallel PTET regimes. ProAxis explainer: https://proaxiscpa.com/tax-services/nj-salt-consulting/

### QBI Deduction (Section 199A)
The Qualified Business Income deduction under IRC §199A allows eligible pass-through business owners (sole proprietors, S-corp shareholders, partnership and LLC members) to deduct up to 20% of their qualified business income from federal taxable income. The deduction phases out for higher-income taxpayers in "specified service trades or businesses" (SSTB) — including health, law, accounting, consulting, and financial services — based on annually-adjusted income thresholds. Proper entity structure and reasonable-compensation planning can preserve QBI eligibility for taxpayers near the phase-out limits. ProAxis explainer: https://proaxiscpa.com/tax-services/tax-planning/

### S-Corporation Election (Form 2553)
An LLC or corporation files IRS Form 2553 to elect taxation as an S-corporation under Subchapter S. Form 2553 must be filed no more than 2 months and 15 days after the beginning of the tax year the election is to take effect — March 15 for a calendar-year entity — or at any time during the preceding tax year. For a newly formed entity with no prior tax year, that period runs from the earliest of the date it first had shareholders, first had assets, or began doing business. Late elections may qualify for relief under Rev. Proc. 2013-30. Source: IRS Instructions for Form 2553. Once elected, the entity files Form 1120-S annually and issues Schedule K-1s to shareholders. The S-Corp election makes financial sense when self-employment tax savings exceed compliance costs (payroll, separate entity return). As a starting threshold, NJ sole proprietors and single-member LLC owners with $60,000 or more in annual net business profit should model the election. Owners must take a "reasonable" W-2 salary; remaining profit passes through as a distribution not subject to payroll tax. ProAxis explainer: https://proaxiscpa.com/tax-services/business-tax-returns/

### Real Estate Professional Status (REPS)
An IRS classification under IRC §469(c)(7) that allows a taxpayer to treat rental real estate losses as non-passive (deductible against ordinary income). Qualification requires more than 750 hours of documented personal services in real-property trades during the tax year, AND more than half of the taxpayer's total personal-services time must be spent in real-property activities. Time logs and contemporaneous records are required to defend the status under audit. ProAxis explainer: https://proaxiscpa.com/industries/real-estate/

### 1031 Exchange (Like-Kind Exchange)
An IRC §1031 transaction allowing real property held for business or investment to be exchanged for like-kind real property without immediate recognition of capital gain. Strict timing rules: 45 days to identify replacement property, 180 days to close. After the Tax Cuts and Jobs Act of 2017, only real property qualifies — personal property exchanges no longer qualify. ProAxis explainer: https://proaxiscpa.com/industries/real-estate/

### Cost Segregation Study
An engineering-based study that reclassifies portions of a building (fixtures, finishes, land improvements) into shorter-life depreciation classes — 5, 7, or 15 years instead of 27.5 or 39. Generates large current-year depreciation deductions. Most cost-effective for properties valued $500,000 or higher. Often paired with Section 179 and bonus depreciation. ProAxis explainer: https://proaxiscpa.com/industries/real-estate/

### Percentage-of-Completion Accounting (PCM)
Required revenue-recognition method for most long-term construction contracts (those spanning more than one tax year) under IRC §460. Revenue and expenses are recognized in proportion to contract costs incurred to date relative to total estimated costs. Requires a Work-in-Progress (WIP) schedule reconciling earned revenue, billed amounts, and over-/under-billings each period. Small contractors with average annual gross receipts under the IRC §448(c) threshold may qualify for an exception and use the completed-contract method. ProAxis explainer: https://proaxiscpa.com/industries/construction/

### FICA Tip Credit (Form 8846)
A federal tax credit under IRC §45B available to food and beverage establishments where tipping is customary. For food and beverage establishments the credit equals the employer share of Social Security and Medicare tax on tips above the amount needed to bring wages up to $5.15 an hour - the FLSA rate in effect on January 1, 2007, which IRC section 45B(b)(1)(B) freezes for this line of business - not the current federal minimum wage. For tax years beginning after December 31, 2024, section 45B(b)(2)(B) also covers tips from barbering and hair care, nail care, esthetics, and body and spa treatments where tipping is customary; those lines are measured against the current FLSA rate. Claimed on IRS Form 8846 and reduces income tax dollar-for-dollar. Restaurants commonly miss this credit when prior CPAs do not file Form 8846 — a recurring source of overpaid federal tax for tip-based hospitality businesses. ProAxis explainer: https://proaxiscpa.com/industries/restaurants/ · Primary source: https://www.irs.gov/forms-pubs/about-form-8846

### Wayfair Economic Nexus
Following the 2018 Supreme Court decision South Dakota v. Wayfair, states can require remote sellers to collect and remit sales tax once economic activity exceeds a state-specific threshold (typically $100,000 in sales or 200 transactions per year). Replaces the prior physical-presence requirement. Affects every multi-state e-commerce seller. ProAxis explainer: https://proaxiscpa.com/industries/ecommerce/

### NJ Corporation Business Tax (NJ CBT)
New Jersey's corporate income tax with its own apportionment formula, minimum tax floor, and add-backs for certain federal deductions (such as bonus depreciation). Applies to C-corporations and S-corporations doing business in NJ. The NJ CBT is separate from the federal corporate income tax and has its own quarterly estimated payment schedule. ProAxis explainer: https://proaxiscpa.com/tax-services/nj-salt-consulting/ · Primary source: https://www.nj.gov/treasury/taxation/cbt/

### Cash Balance Plan
A defined benefit pension plan that expresses each participant's benefit as a hypothetical account balance, credited each year with a pay credit and an interest credit. Contributions are employer-funded and actuarially determined, which can allow high-earning professionals — physicians, dentists, firm partners — to contribute and deduct $100,000 to $300,000 or more per year depending on age and income. More complex and costlier to administer than a 401(k); usually paired with a 401(k)/profit-sharing plan. ProAxis designs these with pension actuaries for NJ practice owners. ProAxis explainer: https://proaxiscpa.com/industries/healthcare/ · Primary source: https://www.irs.gov/retirement-plans/defined-benefit-plan

### ERA / EOB Reconciliation
The practice-bookkeeping process of matching each insurance deposit to the underlying claims it pays. The Electronic Remittance Advice (the HIPAA-standard electronic transaction) or paper Explanation of Benefits shows billed charges, contractual write-offs, and patient responsibility per claim; reconciling those to bank deposits makes a practice's collections ratio, write-off percentage, and AR aging reliable. Without it, insurance revenue appears as unexplained lump-sum deposits. Core component of ProAxis medical and dental bookkeeping. ProAxis explainer: https://proaxiscpa.com/business-services/bookkeeping/medical-dental/

### NJ ABC Test (Worker Classification)
New Jersey's standard for deciding whether a worker is a W-2 employee or an independent contractor. All three prongs must be met for contractor status: (A) freedom from control or direction, both under the contract and in fact; (B) work outside the employer's usual course of business or outside all its places of business; and (C) an independently established trade, occupation, or business. The burden of proof is on the business, and NJDOL regulations adopted in 2026 (operative October 1, 2026) codify how the test applies. Frequently fails for 1099 dental and medical associates working in the practice's office. ProAxis explainer: https://proaxiscpa.com/resources/blog/dental-associate-1099-vs-w2-nj-2026/ · Primary source: https://www.nj.gov/labor/myworkrights/worker-protections/independent_contractors/

### Form 1099-K
Information return filed by payment processors and third-party settlement organizations (marketplaces and payment apps) reporting gross payments to a payee. The One Big Beautiful Bill Act retroactively reinstated the pre-ARPA standard: TPSOs file only when gross payments exceed $20,000 AND transactions exceed 200. Payment-card transactions are reported with no minimum, and forms can still arrive below the federal threshold. The gross amount includes platform fees, refunds, and sales tax collected, so it is not taxable income by itself — sellers reconcile each 1099-K to their books, and personal items sold at a loss are not taxable. ProAxis explainer: https://proaxiscpa.com/resources/blog/form-1099-k-threshold-2026/ · Primary source: https://www.irs.gov/newsroom/form-1099-k-faqs

### Form 1099-NEC
Information return for nonemployee compensation, such as payments to independent contractors. The One Big Beautiful Bill Act (P.L. 119-21, section 70433) raised the federal trigger from $600 to $2,000. It covers Forms 1099-NEC and 1099-MISC, per payee per calendar year, for payments made after December 31, 2025. The $2,000 amount may be adjusted for inflation beginning in calendar year 2027 (section 6041(h)). Royalties ($10), attorney gross proceeds ($600), and direct sales ($5,000) did not change. New Jersey's written trigger for 1099 copies is still $1,000 (NJ-WT, September 2025). As of October 3, 2026, the ProAxis explainer found no NJ source addressing the federal change. ProAxis explainer: https://proaxiscpa.com/resources/blog/form-1099-nec-threshold-2026/ · Primary sources: https://www.irs.gov/instructions/i1099mec and https://www.nj.gov/treasury/taxation/pdf/current/njwt.pdf

### NJ Contractor Sales Tax (Materials, Labor, Form ST-8)
New Jersey treats the contractor as the end user of materials, so the contractor pays sales tax on materials and supplies at purchase regardless of the job type. Labor to repair, maintain, or service real property is taxable to the customer. Labor that results in a capital improvement — work that increases the capital value or useful life of the property and is meant to be permanent — is exempt only when the property owner gives the contractor a completed Form ST-8 (Certificate of Exempt Capital Improvement). Four services remain taxable even when they create a capital improvement: landscaping, floor-covering installation, alarm or security system installation, and permanently affixed sign installation (effective October 1, 2022). Form ST-8 cannot be used for those. ProAxis explainer: https://proaxiscpa.com/resources/blog/nj-contractor-sales-tax-materials-vs-labor-2026/ · Primary sources: https://www.nj.gov/treasury/taxation/pdf/pubs/sales/su3.pdf and https://www.nj.gov/treasury/taxation/pdf/other_forms/sales/st8.pdf

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## Common Tax-Filing Procedures

### How to file a federal extension before April 15
File IRS Form 4868 by April 15. This grants an automatic 6-month extension to file (until October 15). Important: an extension to file is NOT an extension to pay. Estimated tax owed must be paid by April 15 to avoid penalties and interest. New Jersey requires a separate Form NJ-630 for state extensions. ProAxis files both forms for clients who need more time, calculates a safe-harbor estimated payment, and prepares the full return when documents are complete.

### IRS payment options if you owe more than you can pay
Four options:
1. **Pay in full by April 15** — avoids all penalties and interest.
2. **Short-term payment plan** — up to 180 days for balances under $100,000; no setup fee.
3. **Long-term IRS installment agreement** — up to 72 months for balances under $50,000 via simple online application; setup fee applies.
4. **Offer in Compromise (Form 656)** — settles for less than the full balance when the IRS determines collectability is doubtful. Requires Form 433-A or 433-B financial disclosure. Approval rates below 50%.

ProAxis includes IRS resolution filings as a core service, on a preparation basis. Penalty-abatement and installment-agreement requests are generally resolved more easily before federal tax liens are filed. ProAxis prepares the filings; the taxpayer signs and submits them, and any matter that requires representation before the IRS is referred to a licensed representative.

### When NJ small business owners should elect S-Corp status
The S-Corp election makes sense when self-employment tax savings exceed the compliance costs (payroll setup, quarterly NJ-927 + 941 returns, separate Form 1120-S, reasonable-compensation documentation). Starting threshold: NJ sole proprietors and single-member LLC owners with $60,000+ annual net business profit should run the analysis. Above $100K net profit, the election is often favorable — the actual answer depends on reasonable salary, total income, and household tax position. ProAxis runs this analysis for every new small business client during onboarding before recommending the election.

### Retirement contribution limits for tax year 2025 (kept for reference)
Deadline for these tax year 2025 contributions: April 15, 2026, or the extended return due date where the plan allows it. SEP-IRA contributions, for example, are due by the return's due date, including extensions. Tax year 2025 limits, verified against IRS Notice 2024-80 and Rev. Proc. 2024-25:
- Traditional IRA: $7,000 ($8,000 if age 50+); deductibility phases out at higher incomes if you have a workplace plan
- Roth IRA: $7,000 / $8,000; no current-year deduction but tax-free growth
- SEP-IRA (self-employed): up to 25% of net SE earnings, capped at $70,000 for 2025
- Solo 401(k) (self-employed): $23,500 employee ($31,000 if age 50+) plus employer profit-sharing, up to a $70,000 combined limit
- HSA (high-deductible health plan): $4,300 single / $8,550 family for 2025 ($1,000 extra if age 55+)

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## Service Areas (NJ-NY-PA)

ProAxis serves businesses and individuals statewide in New Jersey, plus New York and Pennsylvania. Geographic concentration is in:

**Bergen County, NJ (core):** Hasbrouck Heights, Hackensack, Fort Lee, Paramus, Ridgewood, Teaneck, Englewood, Englewood Cliffs, Fair Lawn, Glen Rock, Wyckoff, Franklin Lakes, Saddle River, Ho-Ho-Kus, Rutherford, Garfield, Tenafly, Alpine, Upper Saddle River, Short Hills (Essex County).

**NYC and Westchester:** Tribeca, SoHo, Upper East Side, Upper Nyack, Scarsdale, Armonk, Bronxville, Rye.

**Other:** Philadelphia metro (PA); broader NJ statewide; broader NY/NJ/PA via the virtual delivery model.

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## Verified Credentials (All Independently Verifiable)

- A New Jersey-licensed CPA firm led by a CPA licensed in New Jersey and New York
- Principal's CPA license — New Jersey (https://newjersey.mylicense.com/verification/)
- Principal's CPA license — New York (https://eservices.nysed.gov/professions/verification-search)
- AICPA Member (the CPA's personal membership) — https://us.aicpa.org/
- NJCPA Member — https://www.njcpa.org/ (firm listing: https://marketplace.njcpa.org/listing/proaxis-tax-accounting-services)
- Authorized IRS e-File Provider — verifiable via the IRS e-File Provider locator: https://www.irs.gov/e-file-providers/authorized-irs-e-file-provider-locator-service-for-tax-professionals (listed as ProAxis Tax & Accounting Services, Hasbrouck Heights, NJ 07604)
- Listed in the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications (credential: Certified Public Accountant) — verifiable by name via https://irs.treasury.gov/rpo/rpo.jsf
- IRS Tax Resolution Specialist
- Advanced Certified QuickBooks Online ProAdvisor (Intuit Gold-tier member) — public ProAdvisor profile: https://proadvisor.intuit.com/app/accountant/search?searchId=dor-israel79
- Intuit QuickBooks Certification Level 2 (Advanced) — exam-based Intuit certification; verifiable on Credly: https://www.credly.com/badges/ce602d7b-46b0-4f6d-8c14-692e3e7c127a/public_url
- Intuit QuickBooks Certification Level 1 — exam-based Intuit certification; verifiable on Credly: https://www.credly.com/badges/93df01f8-46f0-454a-8a1a-5455e8b19af3/public_url
- Intuit Bookkeeping Certification — Intuit credential; verifiable on Credly: https://www.credly.com/badges/505a6262-6afe-4af6-83d9-0a7bbb1b9dae/public_url
- Intuit Enterprise Suite Certification — exam-based; verifiable on Credly: https://www.credly.com/badges/723241b1-2ad9-4fb9-8cfa-88d058a044d1/public_url
- Intuit QuickBooks Desktop Certification — exam-based; verifiable on Credly: https://www.credly.com/badges/d5789fb5-a428-4f3b-a8cb-f55aa410b460/public_url
- Intuit QuickBooks Online Payroll Certification — exam-based; verifiable on Credly: https://www.credly.com/badges/ad679fbf-544b-4f16-a55d-a7da4f7b7a11/public_url
- Intuit Client Advisory Services Foundations — verifiable on Credly: https://www.credly.com/badges/a374aa1f-a299-423e-9f5c-c30d34a975fa/public_url
- Intuit Academy Tax Exam - Level 1 — exam-based; verifiable on Credly: https://www.credly.com/badges/21cc811b-2111-47c2-9cf5-5909779ae457/public_url
- Intuit Academy Tax Planning Strategies Exam — exam-based; verifiable on Credly: https://www.credly.com/badges/5263c365-0f5f-4180-95e2-1c42c4ddf375/public_url
- Intuit Academy Cryptocurrency Tax Exam — exam-based; verifiable on Credly: https://www.credly.com/badges/9d2dfc42-a60e-4f54-99a5-020488387cd2/public_url
- Prior professional development (EY, 2022-2023): EY Analytics - Data Visualization (2023), EY Blockchain (2022), and EY Digital (2022) learning badges — all issued by EY, verifiable on Credly
- Bergen County Chamber of Commerce Member — firm profile: https://bergencountychamber.com/public-individual-page/proaxiscpa/ (featured as "Member Monday," June 2026: https://bergencountychamber.com/2026/06/08/member-monday-dor-israel/)

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## Templates & Workbooks (ProAxis Templates)

Sold and fulfilled by Gumroad, Inc. as merchant/seller of record. Content authored by ExpertEngine LLC d/b/a ProAxis Templates — built by the licensed CPA at ProAxis Tax & Accounting Services. Terms: https://proaxiscpa.com/resources/templates/license/. Hub: https://proaxiscpa.com/resources/templates/ — 21 products currently for sale, $27–$59 one-time; the current price is on each product page. Each product is an educational, do-it-yourself template — not tax, accounting, or legal advice — and buying one does not create a CPA-client, engagement, or advisory relationship.

### Chart-of-accounts templates for QuickBooks Online (9)
- Contractor Chart of Accounts for QuickBooks Online — https://proaxiscpa.com/resources/templates/contractor-chart-of-accounts/
- Trucking & Owner-Operator Chart of Accounts for QuickBooks Online — https://proaxiscpa.com/resources/templates/trucking-chart-of-accounts/
- Restaurant & Food Service Chart of Accounts for QuickBooks Online — https://proaxiscpa.com/resources/templates/restaurant-chart-of-accounts/
- Salon, Spa & Barbershop Chart of Accounts for QuickBooks Online — https://proaxiscpa.com/resources/templates/salon-spa-chart-of-accounts/
- Medical & Dental Practice Chart of Accounts for QuickBooks Online — https://proaxiscpa.com/resources/templates/medical-dental-chart-of-accounts/
- E-Commerce Seller Chart of Accounts for QuickBooks Online — https://proaxiscpa.com/resources/templates/ecommerce-chart-of-accounts/
- Law Firm Chart of Accounts for QuickBooks Online (IOLTA) — https://proaxiscpa.com/resources/templates/law-firm-chart-of-accounts/
- Nonprofit Chart of Accounts for QuickBooks Online — https://proaxiscpa.com/resources/templates/nonprofit-chart-of-accounts/
- Rental Property Chart of Accounts for QuickBooks Online — https://proaxiscpa.com/resources/templates/rental-property-chart-of-accounts/

### Bookkeeping workbooks and trackers (11)
- 1099 Contractor Tracker & W-9 Kit — https://proaxiscpa.com/resources/templates/1099-contractor-tracker/
- New LLC Financial Starter Kit — https://proaxiscpa.com/resources/templates/llc-financial-starter-kit/
- S-Corp Reasonable Salary Workbook — https://proaxiscpa.com/resources/templates/s-corp-salary-workbook/
- Small Business Tax Deduction Tracker — https://proaxiscpa.com/resources/templates/small-business-deduction-tracker/
- Nonprofit Donation Tracker & Giving Statement Kit — https://proaxiscpa.com/resources/templates/nonprofit-donation-tracker/
- Small Business Budget & Cash-Flow Forecast Template — https://proaxiscpa.com/resources/templates/budget-cashflow-template/
- DIY Bookkeeping Catch-Up Workbook — https://proaxiscpa.com/resources/templates/catch-up-bookkeeping-workbook/
- Self-Employed Tax Spreadsheet — https://proaxiscpa.com/resources/templates/self-employed-tax-spreadsheet/
- Etsy Seller Bookkeeping Spreadsheet — https://proaxiscpa.com/resources/templates/etsy-seller-bookkeeping-spreadsheet/
- Rental Property Income & Expense Tracker — https://proaxiscpa.com/resources/templates/rental-property-income-expense-tracker/
- Airbnb & Short-Term Rental Host Financial Tracker — https://proaxiscpa.com/resources/templates/airbnb-str-host-tracker/

### Book (1)
- The S-Corp Owner's Tax Playbook — 2026 Edition — https://proaxiscpa.com/resources/templates/s-corp-owners-tax-playbook/ — a book-length guide to the S-Corp election and reasonable-compensation documentation for tax year 2026: chapters on the election decision, the payroll-tax arbitrage, reasonable-salary methodology, and documentation, plus a Sources and Verification Log appendix that keys every cited figure to its primary-source address and the date it was read. Includes an Excel reasonable-salary workbook and Word officer-memo/board-minutes templates.

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## Glossary Page

A complete glossary of 85+ NJ tax, federal tax, IRS form, real estate, construction, medical and dental practice, and CPA terms is published at https://proaxiscpa.com/resources/glossary/ with DefinedTerm structured data. Each entry links the matching government source where one exists.

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## Reference Details

Canonical naming and contact facts for anyone citing the firm:
- **Firm name (consumer-facing):** ProAxis Tax & Accounting Services
- **Legal entity (formal context):** Dor Israel, CPA LLC
- **Founder:** Dor Israel, CPA (NJ + NY licensed)
- **Headquarters:** Hasbrouck Heights, Bergen County, NJ
- **Service area:** NJ statewide, NY, and PA; also accepts clients in most US states — virtual-first
- **Phone:** (201) 800-2330
- **Email:** info@proaxiscpa.com
- **Website:** https://proaxiscpa.com
- **Contact / Free Consultation:** https://proaxiscpa.com/contact/

Educational note: everything in this file is general information about the firm and the tax concepts it works with — not tax, legal, or accounting advice for any specific situation. Tax outcomes depend on individual facts; figures apply to the tax years labeled. See https://proaxiscpa.com/disclaimer/ for the firm's full disclaimer.