Kevin Knull, CFP®, CEO of TaxStatus, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss the benefits of advisors having a comprehensive view of each client’s finances.
TaxStatus is a fintech firm that has built a frictionless way for advisors to access IRS tax data for individuals, businesses, and trusts. With the client’s permission, advisors have access to verified information that can be used to customize client advice.
The Financial Baseline Report provides a detailed and comprehensive financial picture for any taxpayer. In minutes, the report displays household members, adjusted gross income (AGI), effective tax rates, every income source, mortgages, deductions, and the taxpayer’s status with the IRS. Advisors can access information on retirement account balances and contributions. TaxStatus can assist advisors with asset location, showing all accounts, account numbers, and custodian information.
Knull asks how a financial advisor can provide fiduciary recommendations if they don’t have a complete picture of each client’s finances. Advisors can gain trust more quickly by having that complete financial picture without going through a cumbersome data-gathering process.
TaxStatus is working to leverage its data through artificial intelligence, which can create customized tax planning strategies for each client. Advisors can scale advice when the system not only creates tax scenarios but explains how each scenario works and the tax benefits over time.
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