TaxStatus, the financial planning technology provider, has launched a new feature called the Financial Baseline Report, designed to help advisors provide smarter decisions, streamlined planning and better client outcomes.
The reporting gives financial professionals a comprehensive view of a client’s financial standing, according to the announcement, using data sourced directly from the IRS. It is built on a permission-based process in which advisors don’t need to obtain and upload clients’ individual tax returns to use the planning solution.
It takes only about a minute for clients to grant their advisors permission to set up the reports, according to Kevin Knull, CEO of TaxStatus. The platform can then draw on over 100 IRS tax forms and schedules, along with more than 200 tax transcripts.
“We believe the Financial Baseline Report will completely transform financial planning — making firms more efficient, improving the quality of advice, and ultimately helping advisors deliver better client outcomes,” Knull said in a statement.
Benefits of the reports include the elimination of inefficient gathering and uploading of tax returns, W-2s, K-1s, 1099s and other documents. With up to 10 years of tax data, firms can view trends over time and identify tax mitigation and financial planning opportunities. The solution also supports ongoing IRS account monitoring, helping advisors alert clients if taxes or penalties are due in advance of receiving IRS notice letters.
“Advisors are expected to act as fiduciaries, but without complete financial data, even well-intentioned plans can be incomplete,” Knull added. “This report helps solve that problem by providing more data so advisors can render better recommendations while simplifying the process for both them and their clients.”
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