Magone & Company, P.C. – Roseland, NJ CPA Firm

What U.S. Importers Should Know About the New Tariff Refund Portal

April 29, 2026 by Nick Magone, CPA, CGMA, CFP®

A recent Supreme Court decision has created an unexpected opportunity for businesses that import goods into the United States — the chance to recover tariffs that a federal court determined were not legally valid.

U.S. Customs and Border Protection has created a portal where qualifying businesses can submit refund requests for tariffs collected under the International Emergency Economic Powers Act (IEEPA), following the court ruling. The process is rolling out in stages, so timing matters.

Eligibility comes down to three questions:

Did your business bring goods into the U.S. during the affected period?
Was your company the importer of record on those Customs entries?
Were the tariffs you paid collected under IEEPA authority?

If the answer to all three is yes, your business may have a refund coming.

Where things stand today

Right now, the program covers only IEEPA-related tariffs. Other trade duties and tariff programs are not included.

In addition, only two types of entries are covered in this first phase: those still awaiting finalization by Customs, and those that were closed within roughly the last 80 days. More entries are expected to become eligible as additional phases roll out.

Taking the next step

Refund requests must be filed through the ACE Secure Data Portal, either by your company directly as the importer of record, or through the customs broker who handled the original filing. Because import histories vary, we recommend consulting with a professional who understands the process before you file.

This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance specific to your unique circumstances.

Does Your Retirement Plan Require an Audit?

April 24, 2026 by Nick Magone, CPA, CGMA, CFP®

For many plan sponsors, it starts with a letter.

You receive a notice that your retirement plan now has 100 participants, and you’re required to have an independent audit.

This may be the first you’ve ever heard of an employee benefit plan audit, and here’s what you need to know:

Who needs an employee benefit plan audit?

The Department of Labor (DOL) requires audited financial statements for any retirement plan with 100 or more eligible participants at the beginning of the plan year. Eligible refers to anyone who qualifies to participate, whether or not they’ve actually enrolled in the plan.

Why does the DOL require this?

Your retirement plan holds your employees’ money. And an independent audit ensures that your plan is healthy, having the funds to pay benefits to your participants.

It provides assurance that plan assets are being handled properly, contributions are going in correctly, distributions are being processed and nothing is slipping through the cracks.

What can you expect during the process?

During the audit, a CPA will examine the plan’s financial statements to:

Confirm that plan sponsors are fulfilling their fiduciary duty to plan participants
Evaluate internal controls and identify any weaknesses
Verify that contributions, distributions and loans are being processed in accordance with plan documents and regulations
Flag operational errors, compliance issues or potential fraud risks

What happens if you skip an audit?

If your plan qualifies as a large plan (100 or more participants), you cannot file your Form 5500 without an audited financial statement attached.

Miss the filing deadline? DOL penalties start at $2,259 per day. Beyond the financial hit, failing to comply can also expose your company to fiduciary breach claims from participants, meaning personal liability, not just penalties assessed against the plan.

Keep in mind, you may not know you need an audit until after the plan year has already started. For example, your plan year begins January 1st with 105 eligible participants. That triggers the audit requirement — but the audit itself can’t begin until after the plan year closes on December 31st. Your Form 5500 is due July 31st (or October 15th with an extension). If you’re approaching 100 participants, we recommend that you start the conversation with your CPA before you cross that threshold.

If your plan had fewer than 100 eligible participants at the beginning of the prior plan year and filed as a small plan, you may be able to continue filing as a small plan even if you’ve crossed 100, as long as you don’t exceed 120.

This transition period gives growing businesses a little more leeway, but it has specific conditions that you should also discuss with your CPA.

Ensuring a smooth process

Your first employee benefit plan audit may seem daunting, but here are a few things you can do to make go smoothly:

Get organized. Pull together your plan documents, investment review records, contribution calculations and any other supporting documentation. More importantly, make sure your plan is operating the way those documents say it should. We’ve found that discrepancies between the written plan and actual practice are one of the most common audit issues.
Know what will be tested. Auditors will typically cover contributions, participant data, payroll records, loans, distributions, non-discrimination testing and any prohibited transactions. Have the relevant documentation ready before they ask for it.
Loop in your third-party administrator (TPA) and recordkeeper. The audit team will need data from them too, and getting everyone aligned upfront saves a lot of back-and-forth. Having the right people accessible keeps things moving.

A health check for your employee benefit plan

An employee benefit plan audit protects your employees and provides confidence that everything is running the way it should.

The CPAs at Magone & Company can walk you through exactly what to expect. Our team has 30+ years of expertise with employee benefit plan audits across a wide range of industries. Reach out for a free consultation or call (973) 301-2300.

Internal Controls 101: What Your Auditor is Looking For

April 10, 2026 by Nick Magone, CPA, CGMA, CFP®

Most business owners assume an audit is about checking whether their numbers add up. But there’s a lot more to an audit than ensuring the accuracy of your financial reporting, and it all comes down to internal controls.

Internal controls are the checks and balances your organization puts in place to mitigate risk and protect your financials. It’s an ongoing system of policies and procedures that should be directed by management and carried out by your team.

In our 30+ years as experts in audit and assurance, evaluating those controls is always one of the first orders of business. Here’s a closer look at the process and how to get ahead of it.

What’s at risk?

Under Generally Accepted Auditing Standards (GAAS), auditors are required to obtain an understanding of your internal controls. They’re looking for any unintentional or intentional errors that could cause your financial statements to be wrong.

For example, a company that processes vendor payments without a secondary approval could allow fraudulent disbursements to go undetected, raising red flags during an audit.

Auditors assess your current controls to determine how much additional testing they need to do to satisfy audit requirements and sign off on your financials. In a nutshell, strong controls mean less testing while weak controls mean more.

What do auditors evaluate?

Auditors typically zoom in on five areas. They follow a structured framework to gain a closer look at how your organization manages financial risk.

Control environment. Does management take financial integrity seriously? Are ethical standards clear and enforced?
Risk assessment. Does your organization identify and respond to risks as the business changes? For example, a company that grows from five to fifty employees, but never updates its approval workflows, can cause a breakdown of oversight.
Control activities. Are there specific policies and procedures that put controls into action, including approvals, reconciliations, physical safeguards and IT access? This is where most of the hands-on audit testing happens.
Information and communication. Are the right people getting accurate, timely financial information? Are issues escalated appropriately?
Monitoring. Does management regularly check that controls are working? Controls that were effective three years ago might not be applicable to your business today.

Once your audit is completed, any control deficiencies are outlined in a letter with recommendations on how to address them. You’ll be expected to respond with a remediation plan.

If the same weaknesses continue to pop up audit after audit, that’s a signal to auditors, lenders and investors that you’re not working to address problems and improve the overall fiscal health of your organization.

Staying a step ahead

Don’t wait for an auditor to find problems. Make sure your policies are documented and followed. Walk through your key financial processes and pinpoint who’s responsible for each task. Look for anywhere one person controls an entire process from start to finish, which can put your organization at risk for fraud.

Need more support? The CPAs at Magone & Company are experts in internal control assessments. Whether you’re preparing for your first audit or need a more constructive approach to improving your processes, reach out or give us a call today at (973) 301-2300.

Tax Preparer or Financial Advisor: What Does Your Family Really Need?

March 27, 2026 by Nick Magone, CPA, CGMA, CFP®

Most families assume they just need someone to prepare their taxes each year.

But if you’re only working with a tax preparer, you may be missing the financial guidance that could transform your family’s future and build lasting security.

What’s the difference between a tax preparer and a financial advisor?
A tax preparer focuses on one task: filing your annual tax return based on what already happened last year. They gather documents, complete forms and submit them to the IRS. It’s transactional work that happens once a year.

A financial advisor takes a broader view of your entire financial picture. They can help you plan for college expenses, structure retirement savings, coordinate estate planning and make strategic decisions throughout the year.

Does my family really need more than tax preparation?
If you only care about filing on time, a basic preparer might suffice. But if you want to build stability, save for education, plan for retirement or make smarter money decisions, you need ongoing guidance.

Family advisory services at Magone & Company deliver both — comprehensive tax prep plus strategic planning for every life stage. From budgeting and bill payment to investment strategy and estate planning, you get everything in one trusted relationship.

What does family financial advisory work include?
It varies based on your needs and life stage. For young families, it might mean college savings plans and realistic budgets. For established families, it may consist of retirement planning and wealth preservation. But for all families, family financial advisory work is having someone to call when making major financial decisions.

Services can range from paying household employees and managing bills to coordinating estate planning and charitable giving strategies. The goal is to give you confidence in your financial decisions and help building long-term security.

What if it’s just me, not a family?
The same overall advisory services apply to help reduce your tax burden and preserve wealth. There are also considerations like career financials — like how to handle stock options, a signing or relocation bonus, or deferring compensation to minimize your tax exposure.

A good CPA is looking at your situation proactively, so you’re not stuck with a surprise tax bill after the fact.

How do I know if my current tax preparer is advising me?
Ask yourself: Does my CPA reach out during the year with questions or ideas? Do they know my financial goals and family situation? Am I comfortable calling them when considering a major purchase or career change?

If your accountant only contacts you during tax season, you’re not getting advisory services. A true advisor maintains an ongoing dialogue with your family, understands your goals and provides guidance when you need it, not just when the IRS requires paperwork.

Is financial advisory service only for wealthy families?
Absolutely not. While ultra-wealthy families often have full-time “family offices,” that support should be accessible to all families building financial security.

At Magone & Company, we structure our family advisory services to match your specific needs and life stage. Whether you’re starting out or approaching retirement, ongoing guidance helps you make smarter decisions and avoid costly mistakes.

Are Magone & Company’s family advisory services right for you?
Every family needs tax preparation. But if you want to build wealth, plan for life events and make confident financial decisions, you need an advisor. Reach out for a complimentary assessment at (973) 301-2300.

Three Conversations to Have with Your CPA (That Aren’t About Taxes)

March 13, 2026 by Nick Magone, CPA, CGMA, CFP®

Most business owners only talk to their CPA between February and April. While it’s a no-brainer to communicate during tax season, the real value comes from the conversations you have the other nine months of the year.

In fact, we meet with every business client at least quarterly.

What do we talk about?

From tax planning and compliance to adjusting projections due to changing economic conditions, there are many scenarios that warrant extra face time with your CPA.

Here are three conversations that can help move your business forward.

What are my numbers telling me about my business?

Dig into which products or services are profitable — not just generating revenue. For example, understanding how quickly you turn sales into actual cash reveals critical insights about your operations, and knowing the difference between profit and cash flow can transform how you run your business.

Questions to address with your CPA:

What patterns do you see in my numbers?
Where am I leaving money on the table?
Are there any red flags in my financial trends I should address now?

It’s easy to misinterpret a P&L, for example, if you’re not clear on accrual vs. cash basis and not realizing that some of your “income” hasn’t been collected yet.

What happens when I want to grow?

If you’re looking for financing, you need to plan ahead. Your CPA can explain what lenders and investors expect to see in your financial statements and whether your current business structure supports or limits your expansion goals. Different growth strategies carry different tax consequences, and deciding between bringing on partners vs. taking out loans has long-term implications for your business.

What to ask:

If I wanted a $500K line of credit next year, what needs to change in my books?
What specific numbers in my financials do lenders focus on, and where do I stand?
When expanding, what’s the tax difference between hiring W-2 employees vs. contractors?

With growth comes compliance issues, so be careful you’re clear on employment laws, especially if you employ remote workers outside your geographic area.

How can I get to where I want to be in three to five years?

Exit planning starts way before you’re ready to sell. Many effective tax strategies require years to implement properly, and your CPA can help ensure you’re building wealth both inside the business and in your personal finances.

Talk to your CPA about:

What steps should I take now to maximize my business’s value at exit?
What would a buyer want to see in my financials?
How do I start pulling money out of the business tax-efficiently?

It’s never too soon to start planning for a profitable exit.

Making conversations count

If you’re not touching on these topics when meeting with your CPA (or worse, not meeting at all), you’re missing out on an informed perspective to help move your business forward.

At Magone & Company, we provide year-round support and solutions to help your business grow. Touch base with us if you’re interested in a partnership structured to create value, build wealth and foster a long-lasting relationship.

5 Signs Your Business has Outgrown Your Tax-only Accountant

February 27, 2026 by Nick Magone, CPA, CGMA, CFP®

The accountant who got your business through the startup phase isn’t always the one who gets you to $5 million — or $10M or $20M.

As your business grows, the inflection point usually comes when you need financing, are seeking proactive tax mitigation strategies or need to reward key employees to help retain critical talent.

This is when the gap between basic tax prep and true financial advisory can mean the difference between making informed decisions and expensive mistakes. If your CPA’s involvement hasn’t changed since year one, you may have outgrown the relationship.

Here’s how to tell:

1. They only reach out when they need something for your tax return.

You hear from them during tax season, but there’s no ongoing dialogue about tax planning or your business goals throughout the rest of the year. An advisory relationship should include regular touchpoints aligned with your business cycle and discussions about how today’s financial decisions impact tomorrow’s tax position.

What advisory looks like at Magone & Company: Quarterly check-ins, year-round tax planning and strategic conversations — not just April deadlines.

2. They give you historical data, not forward-looking insights.

Your profit and loss statement arrives with no context or interpretation. There’s no benchmarking against industry standards, no guidance on what to watch for next, and no proactive analysis to identify opportunities.

Here’s an example: We worked with a client on their business and personal returns. This client had previously been with a traditional tax-prep-only firm for the past three years.

With our deep knowledge of state tax laws, we were able to take advantage of that state’s law to exclude income in the state. This resulted in a tax savings of approximately $600,000.

That’s the distinction between an accountant and an advisor. Our advisory approach explains why your business margins are shifting, flags issues before they become problems and identifies which metrics deserve your attention.

What advisory looks like at Magone & Company: We’ll suggest proactive tax mitigation strategies, identify trends in your industry and offer data-informed insights to get ahead of whatever’s next in your business.

2. You’re asking strategic questions, and they’re giving you compliance answers.

When you bring major decisions to your accountant — like hiring employees versus contractors, or buying versus leasing a building — you get technical tax answers instead of strategic guidance. They’ll tell you both options are compliant but won’t help you evaluate which choice is better for your cash flow, growth trajectory or long-term goals.

What advisory looks like at Magone & Company: Actual analysis of your specific situation with scenario planning and concrete recommendations.

3. They have no experience with your next stage.

As you prepare for an acquisition or expansion, you need an accountant who’s guided other clients through these transitions. If your CPA hasn’t helped a business secure financing, navigate due diligence or structure equity arrangements, they can’t speak the language that banks and investors expect or anticipate the challenges.

What advisory looks like at Magone & Company: We’ve walked many clients through these scenarios, and we’ll make sure you know what to expect.

4. Your business is making decisions without their financial input.

You’re setting prices based on gut feelings. You’re hiring reactively because you’re overwhelmed. You’re making large purchases or considering expansion without cash flow projections. And your accountant hasn’t provided any input.

What advisory looks like at Magone & Company: Together, we’ll sift through relevant data and develop a plan based on informed insights, not guesses

Level up your CPA

If any of these signs resonate, take the time to evaluate whether your accounting relationship can really support your business as it grows.

Is your accountant proactively suggesting tax strategies, or only responding when you ask?
Do they understand your goals for the business, not just this year’s revenue target, but your three-to-five-year plan?
Do they understand your business model, your margins and what drives profitability in your industry?
Can they suggest operational improvements to improve productivity or reduce risk?

The advisors at Magone & Company can offer your business the guidance and support it needs for long-term success. To learn more, give us a call today at (973) 301-2300.