Navigating Tax Season: Insights from Financial Advisors and Tax Professionals

As Tax Day approaches, financial advisors and tax professionals are gearing up for another busy season, but this year brings a host of fresh considerations that are guiding their approach to filing.

Jack Oujo, founder of Oujo Wealth Strategies and a certified public accountant and certified financial planner, emphasizes the importance of being prepared well in advance of April 15. He refuses to be pushed around by clients who wait until the last minute to provide necessary information, highlighting the importance of being proactive in the preparation process.

For clients who need more time to file, Liting Chuang, director of tax planning at Bordeaux Wealth Advisors, advocates for filing an extension when necessary. She dispels the misconception that requesting an extension increases the risk of an audit, emphasizing the importance of taking the time needed to ensure accuracy in filing.

The integration of wealth management and tax-related services is becoming more prevalent, with professionals like Amy Irvine straddling both disciplines. This convergence has led to major transactions and acquisitions in the industry, as wealth management firms look to expand their tax-related services.

As advisors and tax professionals navigate this changing landscape, they are closely monitoring pending tax legislation, such as the Tax Relief for American Families and Workers Act. This bill, if passed, could have significant implications for advisors who may be penalized as “promoters” of certain tax credits.

Overall, the evolving relationship between wealth management and tax services is reshaping the industry and providing clients with a more comprehensive approach to financial planning. Stay tuned for more updates on the developments shaping this tax-filing season.