TaxStatus has partnered with Advice.ai to deliver artificial intelligence-powered tax planning strategies, allowing advisors "to automatically surface personalized tax, financial and estate planning opportunities and observations that generate real, measurable client value," the firm said in a statement.
Hightower Advisors has signed an enterprise-level agreement with TaxStatus, becoming an early adopter of the platform to support its advisors with verified, IRS-sourced financial data, TaxStatus announced Monday.
"At Hightower, we're constantly looking for ways to give our advisors a meaningful edge and elevate the client experience," Larry Restieri, CEO of Hightower Advisors, said in a statement. "By partnering with TaxStatus as an early adopter, we're enabling our advisors to have a more fulsome understanding of clients situations — helping them deliver holistic, more proactive advice at scale."
Kevin Knull, CEO of TaxStatus and Co-Founder of Advice.ai, added in the statement: "You can be extremely intelligent and completely uninformed. AI has the intelligence, but without complete, verified data, it doesn't have the knowledge it needs to surface proper opportunities. Financial advisors are well aware of this challenge, but they can only render advice based on the information they have. Advice.ai couples the knowledge — the last 10 years of tax data — with the intelligence of AI — to deliver a more bespoke and accurate toolset for the advisor and their client."
TaxStatus bills itself as "the only platform that provides both sides of the financial and tax equations: what the client reported to the IRS and what the IRS independently knows from third-party reporting." TaxStatus delivers client financials by going directly to the source: the IRS.
Until now, the firms said, "the tax planning standard has been a narrow review of a handful of common strategies per client typically consisting of a Roth conversion, donor advised fund, and/or qualified charitable distribution strategy."
The TaxStatus and Advice.ai solution launches "with over 100 strategies and a near term roadmap to add hundreds more," the firms said.
Because the system utilizes all available records past, present, and future for individuals, businesses, and trusts, it can surface strategies ranging from straightforward SEP IRA contributions to highly complex 1031 exchanges, conservation easements, qualified opportunity zone investments and grantor retained annuity trusts, TaxStatus and Advice.ai said.
"Analysis of a single complex strategy that would have required 18 or more hours of manual work is completed in minutes," the firms said.
The platform "replaces what would amount to over 1,000 hours of professional analysis per client household," the firms added. "And perhaps most compelling of all — is that the strategies are updated as new data is received at the IRS."
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