Tax Planning Service

Did you know that tax planning advice from a Certified Financial Planner™ professional may not be legally allowed unless they also carry a tax designation?

CFP® professionals are excluded from the IRS’ list of authorized tax practitioners according to Treasury Department Circular No. 230. §10.3 Who May Practice explicitly states that Attorneys (JD), Certified Public Accountants (CPA), and Enrolled Agents (EA) are allowed to §10.2(a)(4) “Practice before the Internal Revenue Service if they comply with the Circular 230 regulations.

Further, according to §10.37 Requirements for Written Advice, JDs and CPAs rendering of tax advice is considered “Practice before the Internal Revenue Service.” The Enrolled Agent (EA) designation is directly issued by the Internal Revenue Service and thus EAs are always bound to all Circular 230 regulations including §10.37 Requirements for Written Advice.

Finally, The CFP Board’s Code of Ethics and Standards of Conduct prescribes A. Duties Owed to Clients: 2. Integrity, 3. Competence, and 8. Duty to Comply With the Law which would require any CFP providing tax planning advice to first become tax designated.

Did you know that that the term “401(k) Plan” refers to subsection 401(k) of the Internal Revenue Code? How about IRAs, capital gains, etc? Yes, even the life insurance regulations are written into the tax laws.

It’s true. When a CFP, who isn’t also a JD CPA or EA, provides you with tax advice you can’t legally call it tax advice because CFPs are not authorized to Practice before the Internal Revenue Service.

Is your financial planner even tax designated to be able to legally provide you with tax planning advice related to your business, retirement, estate, etc. goals?

Financial Advice is Tax Advice;

Financial Planning is Tax Planning.

Financial Planners disclose that they aren’t providing tax advice,

yet almost all financial advice is based upon tax law.

Are you working with a Financial Planner who’s also tax designated?

What’s the Difference Between Tax Preparation and Tax Planning?

Tax Planning is proactive whereas tax preparation is reactive.

Many tax strategies must be designed and implemented in advance,

otherwise you don’t get to reap the benefits of a reduced tax bill.

What is a (CTC) Certified Tax Coach?

We are tax professionals with advanced training in proactive tax planning,

who specialize in finding deductions, credits, loopholes, and strategies,

to help their clients pay less tax.

What’s an Enrolled Agent (EA)?

Enrolled Agents are considered America’s Tax Experts.

We’re federally licensed directly by the IRS.

Page Last Updated 2/22/2021

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