FAQ

What are your areas of expertise, and do you specialize in personal or business tax matters?

We have decades of experience in both personal and business tax returns. We also have experience with estates, trusts, and nonprofit organizations. Both Scott and Jay have different areas of expertise from negotiating on behalf of clients with the IRS and State Department of Revenue to keeping up with digital tax payments for online and internet-based services.

How long have you been in practice, and do you have experience with clients in my industry or financial situation?

J. Mitchell Sincoff,C.P.A. has been preparing and filing tax returns, doing bookkeeping, audits  and financial planning for clients in more than 28 states since the 1980s. He is a Certified Public Accountant licensed by the State of  New Jersey and New York State and a Certified Quickbooks ProAdvisor. 

Scott Sincoff,being a broadcast meteorologist around the country for the past decade, Scott has grown up around the financial business and is studying for his Enrolled Agent certification. He is taking his experiences and transforming this venture to a way to help people and thoroughly communicate their financial needs. 

What services do you offer beyond tax preparation, such as financial planning or bookkeeping?

Beyond tax preparation for personal, partnership, corporations, estates, trusts, and non- profit  entities.We also offer financial planning , bookkeeping using Quickbooks online and Quickbook Desktop and CAS engagements. We have done IRS audits, State and Locall Tax audits, Residency audits, Department of Labor audits, and Sales Tax audits.

How do you keep up with changing tax laws and regulations?

Both Jay and Scott take multiple Continuing and Professional Education (CPE) courses to keep up with the evolving tax codes and laws on the federal level, as well as for multiple states. These courses are certified through the National Association of Tax Preparers (NATP) and the American Institute of Certified Public Accountants (AICPA).

What is your fee structure, and do you charge by the hour, project, or flat rate?

Our fee structure is based on your needs and what services you request. The first appointment is a free one hour consultation so we can get to know each other better and see what we can do together to better your financial health. We charge by the hour and are willing to negotiate. Please make sure to give us a call or email to set up an appointment!

How accessible are you throughout the year, and what is your communication style?

We are accessible 24/7/365! As a Veteran and LGBTQ-owned business, we are thoroughly and transparent with you from beginning to finish. We can meet in person, over Zoom/Google Meet webchat, or by telephone. We have a secure document filing service known as VeriFyle which allows for documents to be shared safely and securely with our accounting firm.

Can you provide references or client testimonials?

We can provide references of our work and services from various clients spanning more than twenty years.

How do you handle audits or issues with the IRS?

When a client has an issue with the IRS or the State, the first thing we need is a Power of Attorney form. This allows us to represent the client to the IRS,the State and work with them on any situation, such as working on an Offer in Confidence for back taxes, or any other issues they may have.

Do you perform certified audits?

We do not perform Certified Audits or Reviews. We partner with other accounting firms who have complied with Peer Review on the State level. We do not perform Department of Labor Audits. We do not perform Pension Plan Audits. 

What tax planning strategies do you recommend for minimizing liabilities?

The strategy for tax planning is very simple. Yes, there are the simple strategies of moving income and expenses back and forth. The real strategy with any client is to sit down, either in person or virtually, and ask questions. We talk to them about their business and personal life. The answers are in listening to the objectives of our clients.

Do you offer any digital tools or online portals for managing my finances and tax documents?

We use Quickbooks for bookkeeping and managing your finances. We have a secure document filing service known as VeriFyle which allows for documents to be shared safely and securely with our accounting firm.

How do you stay updated with the latest tax laws and regulations?

Both Jay and Scott take multiple Continuing and Professional Education (CPE) courses to keep up with the evolving tax codes and laws on the federal level, as well as for multiple states. These courses are certified through the National Association of State Boards of Accountancy.

What is your fee structure, and are there any additional costs I should be aware of?

Our fee structure is based on your needs and what services you request. The first appointment is a free one hour consultation so we can get to know each other better and see what we can do together to better your financial health. We charge by the hour and are willing to negotiate. Please make sure to give us a call or email to set up an appointment!

How do you handle communication and availability throughout the year?

We are available throughout the year from January through December, so we never close for our clients. We are always there to listen and be transparent on the tax preparation process with your specific needs. Contact us via phone, email, or any other method that you like.

Can you provide references or testimonials from past clients?

We can provide references and testimonials from clients that span over two decades. We also have reviews on Yelp and Google.

What is your approach to tax planning and strategy?

Our approach to tax planning is simple. We sit down with our clients and listen to their specific needs – whether it be a simple 1040 or something related to your business, estate, or nonprofit. From there, we can figure out what is needed to suit your financial health.

How do you manage and store client information securely?

We communicate and manage client information through VeriFyle which is an encrypted, secure software to send information to and from the client. We also maintain and keep client records for the maximum time allowed by the IRS.

What is your process for handling audits or IRS inquiries?

We do not perform Certified Audits or Reviews. We partner with other accounting firms who have complied with Peer Review on the State level. We do not perform Department of Labor Audits. We do not perform Pension Plan Audits. 

When it comes to an IRS inquiry, the first thing we need is the client to sign a Form 2848 which allows us to work with the IRS on your behalf as a Power of Attorney. From there – we will contact the IRS and work with them to get your needs taken care of.

Do you offer assistance with financial planning or investment advice?

We offer assistance with financial planning and investment advice as it pertains to your short-term and long-term capital gains, IRAs, 401Ks, and other things that could help your financial health.

What software or digital tools do you use for managing client accounts?

We use Quickbooks, Drake Tax Pro, and Verifyle to manage client accounts and records.

How will you ensure my tax filings are accurate and timely?

At the beginning of every tax season, we send out a tax organizer for our personal, business, and nonprofit clients. This is to ensure that our clients know what deductions they can get as well as properly organize their tax information. This will help us process their tax returns in a timely fashion, and allow us to work with the clients every step of the way so that everything gets turned in on time.

Do you offer any services for small business owners, such as bookkeeping or payroll?

We offer bookkeeping services for our clients. We do not offer payroll services.

What is your policy on responding to client questions or concerns? 

We strive to return all client questions and inquiries within 24-48 hours. If you don’t hear from us, try us again! Our transparency and communication is key to keep the trust of our partners and clients.

Personal Tax FAQ’s

What deductions am I eligible for?

Deductions depend on the state and kind of return that you have. If you only have W-2 forms, you are not able to write off as many expenses for work. If you only have 1099 forms, you are able to deduct more expenses that pertain to your business. You also may be eligible for adjustments due to student loan interest, being a teacher, and medical expenses. We can best help you out during a consultation to see what you are eligible for to deduct and reduce your tax bill.

How can I reduce my tax bill?

You can reduce your tax bill by having deductions, credits, and certain expenses. It all depends on your situation.

Do I need to file quarterly estimated taxes?

If you did not have any federal or state taxes withheld, it is a good idea to file quarterly estimated taxes to reduce your tax bill at filing.

How do I report freelance or side income?

You can report freelance or side income by filling out a Schedule C to report your expenses and income.

Can I deduct my mortgage interest and property taxes?

You can deduct your mortgage interest and property taxes.

What are the tax implications of selling my home or property?

Tax implications of selling your home or property depend on a couple of things. It depends if you are under a threshold for income, as well as how much capital gains you have.

How should I report investment income and capital gains?

You can report investment income and capital gains by filling out Form 8949.

Can I deduct my student loan interest?

You can deduct your student loan interest. The amount is located on Form 1098-T.

What is the best retirement savings strategy for tax benefits?

The best retirement savings strategy for tax benefits depends on each person’s specific situation. Call today for a consultation so we may discuss this further.

How long should I keep my tax records?  

You should keep your tax records for a maximum of seven years, depending on your tax filings.

Business Tax FAQ’s

What expenses can I deduct for my business?

Expenses for a business are those that are directly related to the business, but many indirect expenses can also be deducted. We discuss with our clients those deductions that will give them the maximum reduction in their taxes and can give them tax credits which they may not even know about. 

How should I classify my business for tax purposes (LLC, S-Corp, etc.)?

If you’re an LLC, you can file your taxes as either a Sole Proprietor, an S-Corporation, or a regular corporation (C-Corporation). To be considered an LLC for a partnership, you would have to have filed for your EIN not as a single member LLC. 

How do I handle payroll taxes for employees?

We strongly urge our clients to use a professional filing service. For example – ADP, Paychex, Quickbooks, Xero, or Gusto. If the professional payroll companies make a mistake, they pay any interest or penalties that may occur. Remember that payroll taxes could be a personal liability to anyone that files them on behalf of the business.

Can I deduct the cost of my home office?

You can deduct a portion of your home office expenses, as long as the space is used primarily as an office. The IRS has also approved other safe-harbor rules for deducting home office expenses.

What are the rules for depreciating business assets?

The IRS has dictated what assets may or may not be depreciated. Some assets have to be capitalized; some assets may be written off completely in the current tax year; some assets have to be written off over time; some assets you can break out and separate and get better depreciation than taken as a whole. There is a difference between how items are depreciated by the IRS and by the states. 

How do I report income from multiple business ventures?

This sounds like a very simple question, but many times it is not. Therefore, we have to discuss it with you to find out what kind of income and venture.

What are the tax implications of hiring contractors vs. employees?

An independent contractor is a business that, like yours, has other characters and reaches out to do business in the marketplace. The problem with some independent contractors is that some states may consider them employees for unemployment and other miscellaneous taxes. You must be careful that those you hire as independent contractors are truly in business. They must be open to work for the general public. An independent contractor must pay for their own state and federal taxes on the income they earn. The income is reported on a 1099 form.

An employee is someone who just works for you. You control their location, representation, hours; you supervise that person. In most situations, employers withhold a portion of their income for state and federal taxes. This is reported on a W-2 form.

How do I calculate estimated tax payments for my business?

It is very complicated to estimate federal and state taxes for your business. With many of our clients – we review their situation each quarter.

Are there tax credits available for my industry?

We have found that there are many tax credits that may be applicable to our clients businesses, that are originally designed for other industries. Also – where there are no federal tax credits available, there may be the possible state tax credits and vice versa. 

How do I handle sales tax for online sales?

If you are using a company like Amazon, Etsy, etc., they will collect and remit the local and state sales tax for you. If you use your own website, it depends on what type of business and the amount of sales in the state that the product is sold in. Depending upon the situation, you may still be subject to business and personal taxes in those states.  

Estate & Trust FAQs  

What is the difference between a revocable and irrevocable trust?

An irrevocable trust may not be broken, but if the use of the trust isn’t correct – it can be broken.

A revocable trust may be manipulated and changed.

How are trusts taxed?

Trusts are taxed at a much higher rate than personal and business taxes. You need to consult with us on the best way to minimize these kinds of taxes.

How can I minimize estate taxes for my heirs?

Looking at minimizing estate and inheritance taxes – we work with your estate attorney for the best way to do it on the federal and state level.

Do I need to file an estate tax return?

The vast majority of individuals do not need to file an estate and gift tax return on the federal level. On the state level, it is determined by the state where the person is a resident.

Can I avoid probate with a trust?

You may avoid probate with a trust. Assets placed in a trust avoid probate. Assets outside of a trust may avoid probate depending on the beneficiaries of the asset. Therefore, it is very important to consult with an estate or elder attorney. 

How does a trust distribute income to beneficiaries?

Income is distributed at the discretion of the executor/executrix of the estate.

What are the tax implications of gifting assets before death?

We said to one of our clients whose mother was in hospice before her death: “Give your assets to her before her death.” This may sound confusing, but in this particular situation, save the beneficiary millions of dollars. This is why we plan ahead with an estate attorney and/or accountant. 

How do I handle estate taxes on inherited property?

There are no estate or income taxes on inherited property to the beneficiary.

What expenses can be deducted on an estate tax return?

Any expenses related to the execution of the estate or dictated by the will may be deducted on an estate tax return.

Financial Analysis FAQs

What is the difference between cash flow and profit?

Profit on your business is basically a fictitious number that we base your business taxes on. 

Cash flow is what you have left in your bank account at the end of the day. You can have a loss for tax purposes and still have more money in the bank every year.

How do I interpret my company’s financial statements?

The best way to interpret these statements is to sit down with your Certified Public Accountant, and go over the financial statements and their footnotes. Financial statements are your representation to whom you are sending them to.  

What financial ratios should I be tracking?

Financial ratios are different for all businesses. Yes – there are common ratios which are important. However, there are others that are more pertinent to your business.

How can I improve my company’s profitability?

We don’t look at improving your company’s profitability. We look at how we can help increase your business’s cash flow. Your business depends on the cash flow to meet all of your expenses, salaries, and taxes.

What is break-even analysis and how is it calculated?

We need to figure out your break-even to make sure that you have a positive cash flow. That means we need to work with you to better understand all of your fixed, permanent, and variable costs.

How do I manage business liquidity effectively?

The liquidity of your business is your cash flow. You always want to have a positive cash flow and use it to the best of your ability. The only time we should have a negative cash flow is when we’re looking to improve all aspects of your business.

How do I assess the financial health of my company?

As a financial advisor, we look at your business for mistakes that have been made in the past. Then, we sit down with you to go over what you want for the future and come up with a positive plan that benefits your company. Financial health is not the only thing we look at. 

What is the best way to forecast future revenue?

In the 21st century, we cannot look back on the 20th century. Ways of making money and how to do it rely on different practices that go back hundreds of years. Today -we look at the past as a building block and use the nuances, technology, psychology, and sociology of our current business landscape.

How should I approach budgeting and expense control?

This is an area where we listen to your thoughts and ideas because it is your business. We work with you to assess a positive path for you to follow.

Bookkeeping FAQ’s

 What is the best software for small business bookkeeping?

With the different kinds of programs available, there are different definitions of what a small business is. There is no specific answer – it all depends on you and your company’s needs.

How often should I update my books?

Books should always be current. This information is vital to your business.

What expenses should I track for tax purposes?

Any and all expenses that have been paid by the business should be tracked for tax purposes. Some of these expenses may or may not be deductible on your tax return. We discuss this with our clients.

How do I properly categorize my business transactions?

Sit down with your bookkeeper or accountant to discuss the best way to classify and categorize your business expenses.

What is the difference between cash and accrual accounting?

Cash accounting is what you receive and spend as of today.

Accrual accounting is hoping you get the money that you owed. With the future money that you are owed, you can pay your expenses that need to come out to properly run your business. With accrual accounting, you always need to know what your bad debts are so you can write off the losses and reduce your income.

How should I handle payroll in my bookkeeping system?

Payroll in your bookkeeping system depends on the company that you use. Some payroll integrate with different bookkeeping systems and some do not.

What financial reports should I generate regularly?

The most important financial report for any business is your cash flow statement.

How can I track accounts receivable and payable effectively?

The bookkeeping program that you are using for tracking your invoices and expenses should have a program to age your accounts receivable and accounts payable, respectively. If it does not – we suggest that you change the bookkeeping program that you are using. 

What records should I keep for year-end tax filing?

In this age of technology, both the federal and state governments like paper trails. Make sure to keep copies or scans of your statements either in physical or digital formats just in case of an audit. Government has not kept up with the times of current cloud-based technology and social media.

New Business Entity FAQ’s

What is the best business structure for my company (LLC, S-Corp, C-Corp, or Sole Proprietorship)?

An LLC is an entity which gives you the same protection as a corporation would. However, the tax reporting requirements of an LLC is decided by reviewing what is best for the owner of the business at the current time; this may also be changed in the future.

An S-Corp and a Partnership are limited to permanent residents or other partnerships, trusts, estates, and corporations. The income, credits, or loss pass through to the individual owners of the business.

A Corporation, or C-Corp, is like an individual that pays its own taxes. 

A Sole Proprietor pays all taxes as personal taxes. Under current tax rules, there are certain adjustments to the individual’s personal tax return.

In order to figure out which structure is best, please sit down with your accountant with all of your statements and documents. A discussion is the best way to go over your personal situation and the best path is going forward.

What are the tax implications of each business entity type?

All owners of pass-through businesses (such as an estate, trust, LLC, Sole Proprietorship, or S-Corp) have tax liabilities from all of these tax structures. 

The tax liability of a C-Corp or regular Corporation stays with that business. All taxes that create a personal liability rest with those reporting and paying those taxes.

How do I register my business and obtain an EIN?

To register and set up your business, you should consult with a business attorney and accountant. You obtain an EIN when setting up the business through your attorney or can file it online with the IRS.

What legal requirements do I need to meet when forming a new business entity?

The legal requirements of different businesses should be discussed with a business attorney familiar with that industry.

What are the benefits of incorporating in one state versus another?

This is a complicated area. Many states that have no corporation taxes have other fees that can be just as expensive as a corporate or franchise tax. Other legal considerations need to be looked at because of states’ different tax and liability laws.

How do I separate my personal and business finances?

At all times, you should have separate checking accounts and credit cards for your personal finances and business expenses.

What deductions and credits are available to new businesses?

Right now – there is a specific deduction for a business start-up on the federal and state levels. There are many different credits in multiple areas depending on human resources and plans that can be set up with the new business for their employees. This can be changed by the Congress and state governments at any time.

How should I handle payroll for my new business?

We suggest that all businesses use a reputable payroll company (such as ADP, Gusto, or Paychex, etc.). Remember – Sole Proprietors or partners in a Partnership are never salaried employees in a business.