40 answers covering tax preparation, tax planning, NJ BAIT, multi-state filing, IRS resolution, bookkeeping, pricing, and the virtual CPA model. Use the index below to jump to your section.
5 questions
All client services are delivered 100% online through a secure encrypted client portal. Clients upload documents, complete onboarding by video call, sign returns by e-signature, and meet with their CPA by phone or video. There are no in-person requirements. ProAxis is headquartered at Hasbrouck Heights, NJ — but no client visits the office.
ProAxis uses an encrypted client portal with bank-level security (256-bit encryption) for all document sharing. Returns are signed via e-signature (DocuSign or equivalent). The firm does not transmit sensitive documents by email. All practices comply with IRS Publication 4557 (Safeguarding Taxpayer Data) and AICPA confidentiality standards.
ProAxis commits to a one-business-day response on all client communications. For urgent matters, clients call (201) 800-2330 directly. During tax season (January–April), the firm maintains extended availability. Slow response times are one of the most common complaints about traditional accounting firms — responsiveness is a core ProAxis commitment.
ProAxis primarily serves small-to-mid-size business owners ($500K–$10M revenue), real estate investors, medical and dental professionals, executives, and high-income individuals. Industry specializations include real estate, healthcare, e-commerce, construction, restaurants, non-profits, and professional services. Geographic focus is NJ + NY + PA, with multi-state and out-of-state clients accepted in most US states.
Yes. ProAxis accepts new clients year-round, with capacity prioritization given to existing clients during the final 72 hours before April 15. New-client engagements typically begin within 2 weeks of the free consultation. Schedule at proaxiscpa.com/contact or call (201) 800-2330.
5 questions
Published prices are ranges, not an offer. Final fees depend on scope and are set in an engagement letter signed before work begins.
Fixed fees for tax preparation, business returns, and annual bookkeeping engagements — quoted in writing in an engagement letter before work begins. Hourly rates ($200–$300/hr) apply only to ad-hoc advisory work outside a defined engagement. See proaxiscpa.com/pricing/ for the published fee structure. Published prices are ranges, not an offer. Final fees depend on scope and are set in an engagement letter signed before work begins.
Bookkeeping fees range from $300/month (solo operators) to $4,000+/month (multi-entity / complex businesses). The tier is determined by transaction volume, payroll headcount, and entity complexity. Five published tiers: Solo $300–$500; Small Business $400–$700; Growing $700–$1,400; Established $1,200–$2,500; Multi-entity $1,800–$4,000+. Published prices are ranges, not an offer. Final fees depend on scope and are set in an engagement letter signed before work begins.
Individual Form 1040 with W-2 income starts at $300. Itemized + investments from $500. Multi-state from $650. Schedule E rentals from $700. S-Corp Form 1120-S from $1,200. Partnership Form 1065 from $1,200. C-Corp Form 1120 from $1,500. Form 990 from $1,500. Final fee depends on full scope, identified at the free consultation. Published prices are ranges, not an offer. Final fees depend on scope and are set in an engagement letter signed before work begins.
No. ProAxis does not charge rush fees, urgency premiums, or last-minute surcharges. Fees are determined by complexity, not timing. Last-minute filers in the final 72 hours before April 15 pay the same prices as clients who started in January.
Yes. Clients who engage ProAxis for both monthly bookkeeping AND business tax preparation receive 10% off the tax return fee. Clients who add payroll receive an additional 5% off bookkeeping. 501(c)(3) non-profits receive 10% off Form 990 prep and 10% off bookkeeping. Bundle discounts are reflected in the engagement letter.
6 questions
ProAxis prepares individual returns (Form 1040 and all schedules). Business returns include S-Corp Form 1120-S, C-Corp Form 1120, partnership Form 1065, and multi-member LLC returns. ProAxis also prepares trust returns (Form 1041) and non-profit returns (Form 990, 990-EZ, 990-N). New Jersey state returns include NJ-1040, NJ CBT-100, and NJ PTE-100. New York state returns include NY-IT-201, NY-IT-203, and NY CT-3. Pennsylvania state returns include PA-40 and PA-RCT-101. Multi-state returns are prepared for clients with nexus in multiple states.
Individual Form 1040 is due April 15. Partnership Form 1065 and S-Corp Form 1120-S are due March 15. C-Corp Form 1120 is due April 15 (or the 15th day of the 4th month after fiscal year end). Form 990 is due May 15. Deadlines can be extended, but the right extension form depends on the return. Individuals extend on Form 4868. Business returns extend on Form 7004. Form 990-series and other exempt-organization returns extend on Form 8868. An extension extends time to file, NOT time to pay.
Yes. ProAxis files Form 4868 (federal individual) and Form 7004 (federal business) extensions, plus state extensions including NJ-630 and equivalents. Extensions grant an additional 6 months to file. Tax owed is still due April 15 to avoid late-payment penalties (0.5% per month). ProAxis calculates a safe-harbor estimated payment as part of the extension filing.
Standard documents: W-2s and all 1099s (1099-NEC, 1099-MISC, 1099-K, 1099-INT, 1099-DIV, 1099-B). Also needed: mortgage interest 1098, property tax records, and the year-end brokerage statement. Plus K-1s from S-corps or partnerships, the prior-year return, and category-level summaries of deductions (medical, charitable, business mileage). ProAxis only needs summaries — not every receipt.
Yes. Delinquent (late-filed) returns are a common engagement. ProAxis prepares back-year returns going back as many years as required by the IRS or the taxpayer's situation — most commonly 3–6 prior years. Penalty abatement and installment agreement work is often paired with delinquent return filing.
Related guide: what to do if you haven't filed taxes in years (NJ)
Yes — and it's recommended. The free consultation includes a review of the most recent return for missed deductions. It also covers unfiled credits (FICA tip credit, R&D credit, NJ BAIT) and entity structure issues. Recovery of missed deductions via Form 1040-X amendment is common, especially for restaurant and real estate clients.
5 questions
Tax preparation is backward-looking — it documents what happened in the prior year and ensures correct filing. Tax planning is forward-looking — analyzing current and projected income to make strategic moves before December 31 that legally reduce future tax. Most CPAs only do prep. ProAxis includes year-round planning as a standard part of every engagement.
Varies by income, business structure, and starting position. Common ProAxis-engagement savings: $5,000–$25,000+ per year from NJ BAIT election. S-Corp election for sole proprietors above $60K net profit: $5,000–$15,000. Defined-benefit retirement plans for high-earning physicians: $10,000–$30,000+. Cost segregation studies on commercial real estate: $3,000–$10,000+. Total savings stack across multiple strategies.
Ideally January or February — as early as possible. Many high-impact strategies (S-Corp reasonable comp, BAIT election, retirement plan funding, equipment purchases for Section 179) require action during the year. December is too late for most. Quarterly planning sessions are built into ongoing ProAxis engagements.
The NJ Business Alternative Income Tax (BAIT) is an annual election available to NJ S-corporations, partnerships, and multi-member LLCs. The entity pays NJ tax at the entity level (federally deductible) instead of the owner paying it personally. The owner's personal payment would be subject to the federal SALT cap ($40,400 for 2026, less for very high earners). Bypasses that cap. Typical savings: $5,000–$25,000 per year per owner. Savings vary with income, entity type, ownership share, and the owner's other state-tax positions. The range shown is illustrative, not a projection for any specific business. Full guide at /tax-services/nj-salt-consulting/nj-bait-election/.
If your single-member LLC nets $60,000+ per year in business profit, S-Corp election usually saves significant self-employment tax. The election requires reasonable W-2 compensation to the owner (subject to payroll tax), with remaining profit passing through as distributions (not subject to SE tax). ProAxis runs the analysis for every new small-business client during onboarding.
5 questions
NJ CBT is New Jersey's corporate income tax with its own apportionment formula and minimum-tax floor. Applies to C-corporations and S-corporations doing business in NJ. Has its own quarterly estimated payment schedule and add-backs for certain federal deductions (such as bonus depreciation). Filed on Form CBT-100 annually.
NJ Gross Income Tax (GIT) uses its own rate brackets separate from federal. Applies to NJ residents on worldwide income and to nonresidents on NJ-source income. NJ does not conform to all federal tax changes. Tax Cuts and Jobs Act and One Big Beautiful Bill (OBBB) provisions do not automatically flow through to NJ returns. State-level adjustments are required.
The NJ Senior Freeze (Property Tax Reimbursement, PTR) program reimburses eligible senior citizens (age 65+) and disabled persons. The reimbursement covers property tax increases above their base year. You must be 65 or older as of December 31 of the application year. Receiving federal Social Security disability benefits also qualifies you. You must have owned and lived in the home since December 31 three years before the application year. Property taxes must be paid in full. Income limits change each year — $168,268 or less for 2024 and $172,475 or less for 2025. There is no longer a 10-year New Jersey residency test. Senior Freeze is now claimed on the combined Application for Property Tax Relief, Form PAS-1. The PAS-1 covers Senior Freeze, ANCHOR, and Stay NJ in one filing. Seniors and disability-benefit recipients must file the PAS-1 themselves — it is not filed automatically. The deadline for the 2025 application is November 2, 2026. Forms PTR-1 and PTR-2 applied to earlier application years only. Easy to miss for older taxpayers — ProAxis flags eligibility during the consultation.
Federal: Form 941 quarterly, FUTA annually, W-2s annually. NJ: Form NJ-927 quarterly (income tax + UI/SDI/FLI), NJ-W-3 annual reconciliation. Plus state Workforce Development and Family Leave contributions. NY commuter wages add Form NY-IT-2104. ProAxis handles all federal and multi-state payroll filings for full-service payroll clients.
NJ collects a Realty Transfer Fee (RTF) on the sale of real property. Two standard rate schedules apply. On sales of $350,000 or less, the rate is $2.00 per $500 (about 0.4%) on the first $150,000. It then runs $3.35 per $500 up to $200,000 and $3.90 per $500 up to $350,000. On sales over $350,000 a higher schedule applies from the first dollar. It starts at $2.90 per $500 on the first $150,000, then $4.25 per $500 up to $200,000. Higher tiers run $4.80 to $550,000, $5.30 to $850,000, and $5.80 to $1,000,000. Above $1,000,000 the rate is $6.05 per $500. Paid by the seller at closing. Senior citizens and disabled sellers may qualify for partial exemption. On sales over $1 million, the seller (not the buyer) now pays a graduated supplemental fee (the former 'mansion tax'). It runs from 1% up to 3.5% by price tier, under New Jersey's law effective July 10, 2025. Both are common surprise costs in NJ real estate transactions.
4 questions
NJ residents working in NYC face a complex multi-state filing. NY taxes wages earned in NY (NY-IT-203 nonresident return). NJ taxes worldwide income but credits NY tax paid. NY's convenience-of-the-employer rule treats remote work as NY-source unless the employer's NECESSITY (not employee preference) requires it. ProAxis handles this filing pattern weekly.
The 2018 South Dakota v. Wayfair Supreme Court decision lets states require remote sellers to collect and remit sales tax. The requirement applies when economic activity exceeds a state-specific threshold (typically $100,000 in sales OR 200 transactions per year). Affects every multi-state e-commerce seller. ProAxis runs nexus analysis for every e-commerce client across all 45 sales-tax states.
Yes. ProAxis accepts clients in most US states. Federal Form 1040 is filed for any state of residence. Resident state returns are prepared for the states ProAxis serves. Multi-state nonresident returns add $150–$400 per additional state. See /multi-state-clients/ for the full out-of-state client policy. Published prices are ranges, not an offer. Final fees depend on scope and are set in an engagement letter signed before work begins.
When a business has income from operations in multiple states, that income must be ALLOCATED among the states (apportionment). Each state has its own apportionment formula (typically based on sales, payroll, and property factors). Common challenges: defining where revenue is sourced, allocating service revenue, and applying single-sales-factor formulas. ProAxis handles multi-state apportionment for businesses with cross-state operations.
5 questions
QuickBooks is a tool, not expertise. Many business owners categorize transactions incorrectly, miss reconciliation errors, or produce financial statements that don't reflect reality. CPA-supervised bookkeeping ensures books are accurate AND set up to minimize tax liability — not just compliant. Errors compound: a misclassified $5,000 expense per year becomes $25,000 over 5 years of returns.
A Fractional CFO provides CFO-level financial leadership (cash flow forecasting, financial modeling, KPI dashboards, banking relationships, exit planning) on a part-time basis. Right for businesses with $1M–$10M+ revenue that have outgrown bookkeeping but aren't ready for a full-time CFO ($150K–$300K salary). ProAxis offers fractional CFO as a separate engagement from bookkeeping.
Primary platform: QuickBooks Online (Certified ProAdvisor). Also supports Xero, NetSuite (mid-market clients), and FreshBooks. ProAxis can migrate clients between platforms if business needs change. New clients on no current software are typically set up on QuickBooks Online during the onboarding engagement.
Depends on backlog. Catch-up engagements range from 1 month (fixing a current-year gap) to 36 months (multi-year reconstruction). ProAxis charges $300–$600 per backlog month. Common scenarios: missed reconciliations from a prior bookkeeper, business that fell behind during COVID, or new client whose prior records were never closed properly.
Standard scope: bank and credit card reconciliation, transaction categorization, accounts payable and receivable tracking, and payroll integration. Also included: monthly profit-and-loss and balance sheet, year-end close, and tax-ready books delivered to the tax-prep team. NOT included by default (separate engagements): tax return prep, payroll processing, fractional CFO, audit support.
5 questions
Don't panic and don't ignore it. Most IRS letters are routine (CP2000 underreporter notices, balance-due notices, refund-correction notices) — not audit notices. Read it carefully, note the response deadline, and forward to ProAxis immediately. The free initial consultation includes review of any IRS correspondence at no cost. Never respond to the IRS without CPA guidance — the wrong response can convert a routine notice into a costly audit.
Licensed CPAs hold full representation rights before the IRS. ProAxis currently focuses on preparation and resolution filings, working under Form 8821 (tax-information authorization). Form 8821 is an information authorization only: it lets ProAxis pull your IRS transcripts and receive your notices, and its instructions expressly bar the designee from advocating your position. It is not a power of attorney. ProAxis prepares the filings themselves — notice responses, penalty-abatement requests, installment-agreement requests, and Offer in Compromise packages — for you to sign and submit. When a matter requires formal representation, ProAxis refers you to qualified representation and keeps preparing the underlying returns.
An IRS Offer in Compromise (OIC, Form 656) settles tax debt for less than the full amount owed when the IRS determines collectability is doubtful. Requires extensive financial disclosure (Form 433-A or 433-B). Approval rates run below 50% — the IRS only accepts when the full debt cannot reasonably be collected. ProAxis evaluates OIC eligibility for clients with significant balance due. Engagement starts at $2,500. Published prices are ranges, not an offer. Final fees depend on scope and are set in an engagement letter signed before work begins.
IRS installment agreements come in three main types. 1) Short-term plan — up to 180 days for balances under $100,000, no setup fee. 2) Long-term Streamlined Installment Agreement — up to 72 months for balances under $50,000 via simple online application. 3) Non-Streamlined Installment Agreement — for balances $50K–$100K+ requiring Form 9465 plus Form 433-F financial disclosure. Interest and reduced penalties accrue during all plans.
Yes. NJ Division of Taxation matters (CBT examination, GIT audit, PTR denials, payroll tax notices, BAIT compliance) are handled the same way as IRS matters. ProAxis prepares the responses and filings for NJ correspondence and appeals. When a matter requires formal representation, ProAxis refers you to qualified representation.
ProAxis is happy to answer any question about your specific tax or accounting situation during the free consultation. If the answer is probably already published, the site directory lists every page on proaxiscpa.com.
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Content last updated: August 23, 2026. Figures reflect the law in effect when written; see the Disclaimer.
