FP Alpha, the tax and estate planning platform, has launched a feature dubbed NextGen Tax Insights, described as a artificial intelligence-based solution for financial advisors seeking to minimize client tax burdens and deepen engagement.
The rollout follows FP Alpha’s recent release of FP Alpha Tax as a standalone tax planning platform, with both services aiming to help advisors navigate the year-end tax planning season.
“When a client gives you their tax return, they want you to turn around tax savings ideas,” Andrew Altfest, founder and CEO of FP Alpha, said in a statement. “Alpha does that with no work needed from the advisor. This innovation empowers advisors to deliver highly relevant, data-driven insights based on each client’s specific tax profile and life situation.”
Unlike static tax return analysis tools, Altfest said, NextGen Tax Insights leverages a holistic data model, integrating tax returns, income, demographics, assets and other financial details to derive planning insights.
For example, the platform can help demonstrate how the increased standard deduction for seniors or the new state and local tax deduction cap increase from $10,000 to $40,000 could affect each client’s situation.
“It’s AI you can trust because it was curated by CFP professionals, CPAs, and trusted data sources such as the IRS,” Altfest said. “It’s monitored continuously for accuracy and compliance with the CFP Board’s new technology standards.
"The models only have a memory to a specific client, the data is anonymized, encrypted and explained. Chances of hallucinations are near zero. Advisors can also toggle insights on or off to align with their firm’s preferences,” he said.
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