Frequently Asked Questions

Everything you need to know about RoboTax, our process, and how we help business owners keep more of what they earn.

Getting Started

Who is RoboTax designed for?

RoboTax is designed for business owners with federal tax liability of $250,000 or more annually. Our strategies deliver the most value for S-Corps, C-Corps, LLCs, and partnerships with significant taxable income. Business owners who recently received Employee Retention Credit (ERC) refunds are particularly well-suited, as they often face substantial tax liability without proactive planning.

How is RoboTax different from my CPA?

CPAs are compliance-focused — they accurately report what happened. We're strategy-focused — we proactively structure what will happen. We don't replace your CPA; we work alongside them. Your CPA handles preparation and filing while we identify and implement the strategies that create the numbers they'll file. Think of us as the architect and your CPA as the builder.

What information do I need to get started?

For your initial Tax Analysis & Strategy Session (Meeting 1), you don't need anything — we'll explain our methodology and what's possible. After you engage us, for the Tax Analysis Questionnaire (Meeting 2), we'll need:

  • Prior 2-3 years of tax returns (personal and business)
  • Entity structure documentation
  • Recent financial statements
  • Information about recent real estate purchases
  • Details on any ERC refunds received

Pricing & Fees

What does the $2,500 TASS fee include?

The Tax Analysis & Strategy Session includes your complete analysis through our 435-strategy database, a personalized tax plan with IRC citations, a risk assessment for each recommended strategy, and a 90-minute delivery presentation. If we can't identify at least $25,000 in potential savings, the entire $2,500 is refunded.

How do you calculate implementation fees?

Implementation fees are fixed-fee based on scope and complexity — never a percentage of savings (that would create conflicts of interest). Fees are determined by the number of strategies, complexity of implementation, entity restructuring requirements, and ongoing compliance needs. Average implementation engagements range from $35,000 to $75,000, though complex multi-entity situations may be higher.

What is the Foglia Rule?

The Foglia Rule is our internal compliance safeguard: no strategy is ever recommended unless it would pass attorney review. Named after our Compliance Lead Mike Foglia, J.D., this ensures every recommendation has been vetted for legal defensibility before it reaches your tax plan. If a strategy wouldn't survive IRS scrutiny, you'll never see it.

What is the 5% Audit Defense Reserve?

We set aside 5% of implementation fees into an Audit Defense Reserve for each client. If you're ever audited on strategies we implemented, this fund covers your defense costs. If you're never audited, unused funds are returned at the end of your engagement. We call unused reserve funds the "Furdock Fee" — payment for the peace of mind we've provided.

Process

What is the 9-meeting journey?

Our structured client journey spans 9 meetings across three phases:

  • Discovery (M1-M3): TASS presentation, data collection, and tax analysis delivery
  • Implementation (M4-M5): Strategy execution kickoff and progress review
  • Optimization (M6-M9): Quarterly reviews and annual renewal

This structure ensures nothing falls through the cracks and your strategies are continuously optimized.

How long does implementation take?

Timeline varies by strategy complexity. Simple strategies like Augusta Rule or Section 179 can be implemented within 2-4 weeks. Complex strategies like cost segregation studies or defined benefit plans typically take 6-12 weeks. Multi-strategy implementations usually span 3-6 months for full execution. We'll provide specific timelines during Meeting 3.

Will you coordinate with my existing CPA and attorney?

Absolutely. Collaboration is core to our model. We provide your CPA with complete documentation for proper tax return preparation. We coordinate with your attorney on any entity restructuring or legal documents. We establish clear communication protocols so everyone stays aligned. This isn't about replacing your team — it's about giving them strategies to implement.

Compliance

What is Material Advisor compliance?

Under IRC §6111, tax advisors who receive fees exceeding certain thresholds for "reportable transactions" become Material Advisors with IRS disclosure requirements. We've built infrastructure to automatically track threshold exposure, generate required Form 8918 filings, and maintain §6112 client lists. This compliance automation protects both RoboTax and our clients from penalties.

How do you classify strategy risk?

Every strategy in our 435-strategy database carries a risk classification:

  • GREEN (Safe Harbor): Well-established, minimal audit risk, broad applicability
  • YELLOW (Monitored): Legitimate but require precise documentation and may attract scrutiny
  • RED (Blocked): Listed transactions or strategies under active IRS challenge — we will not recommend these

Currently: 386 Green, 39 Yellow, 10 Red strategies.

What happens if I'm audited?

First, our 5% Audit Defense Reserve covers your defense costs. Second, every strategy we implement comes with complete documentation including IRC citations, case law precedent, and implementation records. Third, our attorney partner Furdock & Foglia Law can represent you in IRS proceedings. We don't just give you strategies — we give you the documentation to defend them.

Strategies

What are your most common strategies?

While recommendations are highly personalized, frequently implemented strategies include:

  • Cost Segregation (§168k): Accelerate depreciation on real estate
  • R&D Tax Credit (§41): Credits for qualifying research activities
  • Augusta Rule (§280A): Tax-free rental income from personal residence
  • Defined Benefit Plans (§412): Supercharged retirement contributions
  • Entity Restructuring: Optimize entity type for your situation
What industries do you specialize in?

Our 435-strategy database spans all industries, but we have particular depth in: healthcare practices, professional services (law, accounting, consulting), real estate investors and developers, technology and software companies, manufacturing and distribution, and retail and e-commerce. Many strategies apply across industries, while others are sector-specific.

Can you help with multi-state tax issues?

Yes. While our core database focuses on 435 federal strategies, we're expanding to include state and local overlays — ultimately targeting 2,500+ total strategies. Multi-state entities benefit from strategies like state tax credit optimization, nexus planning, and apportionment structuring. We coordinate with state-specific specialists when needed.

Still Have Questions?

Schedule a call with our team to discuss your specific situation. No obligation, no pressure — just answers.

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