PrepayCPA, a Delaware-based startup, began operations in November 2011, offering annual tax return reviews for approximately $300. The company also pays commissions to individuals who recruit new customers, operating under a multilevel marketing compensation plan where member earnings largely depend on recruitment rather than direct service sales.

Three executives manage PrepayCPA. Bruce Toone serves as a CPA and managing partner at Toone & Associates, handling accounting. David Track, the founder and president, also runs MLM Social, another multilevel marketing venture. Josh Rosenbaum holds the Chief Operating Officer position. Track has participated in internet marketing and MLM ventures through Track Companies Inc. since 2003.

PrepayCPA offers three service tiers. The Basic Protection plan costs $24.95 monthly, or $299.40 annually. This tier includes a tax return review for the current year, aid with IRS liens and levies, help for IRS and state notices, and one basic incorporation. For $34.95 per month, or $419.40 annually, the Protection Plus tier adds an audit protection plan. This plan provides eight hours of audit preparation services if the IRS conducts an audit. A standalone Audit Protection Plan also offers these eight hours of audit preparation.

The compensation structure uses a unilevel system. Customers enrolled directly by a member form that member's first level. Individuals recruited by those first-level customers become the second level, and the system continues. Passive income theoretically flows upward as the recruitment chain extends.

The pricing structure stands out. An annual cost of $300 for a tax return review is not inexpensive. Many independent tax preparers charge less for basic returns. PrepayCPA claims the added value comes from ongoing membership benefits and the chance to earn commissions from recruiting.

This hybrid model, combining services with MLM recruitment, is common in direct sales. Companies use it to assert they sell products while creating compensation plans that prioritize recruitment over retail sales. For potential PrepayCPA members, the central question is whether the business opportunity lies in tax assistance or in recruiting new participants. That distinction often proves significant.