FAQ
Frequently asked questions
Clear answers about wallet credit, usage, subscriptions, and how Tycoon charges for work.
I already have a CPA. Why do I need AI to do tax prep?
You don't want AI to do tax filing — that's what the CPA is for. You want AI to do the prep work the CPA currently charges you $300/hour to do: pulling bank statements, matching 1099s to W-9s, reconciling intercompany transfers, catching a missed home-office deduction. A typical founder pays their CPA $3-5K/year; 60% of that is prep work, 40% is actual filing and strategy. Tycoon handles the 60% — your CPA stays in their high-value zone (entity structure, equity planning, state strategy) and your total tax bill drops.
What about state nexus — I'm remote, how do I know where I owe?
Nexus has two flavors: physical (you or an employee is in the state) and economic (you sell >$X into the state). AI CFO tracks both. For physical: it pulls your calendar + addresses + employee records to flag when you've spent >14 days in a state or hired someone there. For economic: it tracks your Stripe + Shopify revenue by customer state against each state's threshold ($100K or $500K typically, varies wildly). When you cross a threshold, you get a chat explaining what registration is required and a draft application. The costly mistake is ignoring this for 2 years and then getting a letter demanding back taxes + penalties.
My entity is an LLC taxed as S-corp / C-corp / partnership. Does this handle all entity types?
Yes, but the workflows differ. For S-corp: AI CFO calculates reasonable salary vs distribution split, runs payroll through Gusto, files 1120-S prep. For C-corp: calculates federal+state tax provisions, tracks NOL carryforwards, handles R&D credit studies, preps 1120. For LLC/partnership: handles K-1 prep for each member, distributes year-end tax packages. For sole prop / single-member LLC: Schedule C prep, SE tax calc. You set your entity type once and all the workflows adapt.
Can it handle international operations — foreign entity, foreign contractors, VAT?
Partially — international adds real complexity that deserves a specialist CPA. What Tycoon handles: tracking payments to foreign contractors (W-8BEN on file, no withholding needed), VAT/GST collection on EU/UK sales via Stripe Tax, foreign entity financials in USD for consolidation, FBAR tracking if you have >$10K in foreign accounts. What it doesn't do: transfer pricing studies, foreign tax credits, PE (permanent establishment) analysis, US-UK tax treaty positions. For those you pay a cross-border CPA $500-1K/year; Tycoon makes their job easier by keeping the underlying data clean.
What happens if the IRS sends a letter or audits us?
First step: don't panic, most IRS letters are automated mismatch notices (CP2000, CP501) and not audits. AI CFO pulls the letter, identifies what the IRS thinks is wrong, and pulls supporting docs from your audit trail (every transaction has a source document linked). 80% of the time the response is a letter explaining the discrepancy with attached evidence, drafted in 30 minutes. For actual audit (rare — <1% of S-corps), you forward to your CPA who now has a fully-reconciled set of books with source documents, making their job 10x easier. Audit survival rates correlate strongly with bookkeeping quality, and this workflow keeps yours clean.