Tax Planning

Business Tax Structure

The right entity choice depends on more than the self-employment tax savings everyone talks about. We help clients evaluate single-member LLC versus S-corporation election versus C-corporation, with attention to the trade-offs that actually matter in New York: NYC unincorporated business tax (4 percent on net income above the small-business deduction threshold), the 1.5 percent annual filing fee on S-corps, the requirement to run reasonable W-2 payroll on an S-corp, and the section 199A qualified business income deduction.

For multi-state businesses, we advise on apportionment, nexus, and the convenience-of-the-employer rule (which can pull New York tax on income earned by remote employees who never set foot in the state).

Estate and Gift Tax Planning

Federal estate tax exemption sits at roughly $14 million per person in 2026, with sunset provisions that may cut it nearly in half after 2025. New York's estate tax exemption is much lower (currently around $7 million) and includes a "cliff": estates that exceed 105 percent of the exemption lose the entire exemption and pay tax on the full estate, not just the excess. The cliff turns ordinary estate appreciation into outsized tax bills.

We design plans that use the federal exemption and portability efficiently, manage the New York cliff through gifting, life insurance trusts, and charitable strategies, and coordinate with our estate planning practice to make sure the documents actually implement the tax plan.

New York Residency and Domicile Planning

New York is one of the most aggressive states in auditing residency changes. Moving to Florida, Texas, or another no-income-tax state does not end New York tax exposure on its own. New York applies two parallel tests: domicile (where is your true, fixed, and permanent home) and statutory residency (do you have a permanent place of abode in New York and spend more than 183 days here).

The domicile audit looks at the "primary factors": location of home, location of active business interests, location of items "near and dear" (family heirlooms, pets, art collections), location of family, and social and community ties. We help clients plan and document the move properly the first time, and defend residency audits when DTF comes knocking three years later asking for cell phone records, EZ-Pass logs, and credit card statements.

Tax Controversy and Collection Defense

When the IRS or New York State sends a notice, the worst response is no response. We handle audits, notices of deficiency, collection due process hearings under IRC 6330, installment agreements, currently-not-collectible status, offers in compromise (with realistic expectations about acceptance rates), penalty abatement, innocent spouse relief under IRC 6015, and trust fund recovery penalty cases under IRC 6672.

For New York State, we handle DTF audits, substitute returns under Tax Law 681(a), residency audits, sales tax assessments, and warrant and income execution defense. We also represent clients with foreign account reporting issues (FBAR and FATCA) and the Streamlined Filing Compliance Procedures.

Transactional Tax Advice

Tax often drives whether a deal makes sense. We advise on the tax structure of business sales (asset sale versus stock sale, F reorganization to step up basis, installment treatment under IRC 453), real estate transactions (1031 exchanges, cost segregation, opportunity zones), and ownership transitions (gift and sale to a grantor trust, ESOP, family partnership). We work alongside accountants and existing tax counsel where the client already has them, and serve as primary tax counsel where they do not.