The Line Between Tax Planning and Tax Advice

 

One of the most common compliance questions we hear from financial advisors is:
“How do I help my clients with tax planning… without stepping into tax advice?”

 

And it’s a great question, because there is a line…and depending on your firm, compliance team, and licensing, it may feel like a moving target. But here’s the good news: You don’t need to be a CPA or tax attorney to help clients make better decisions around taxes. In fact, you can (and should) deliver meaningful tax-related value without giving tax advice.

 

Here’s how:

  • Educate. Help clients understand what’s out there – current tax rules, common strategies, or what might be changing soon. Education isn’t tax advice. It’s empowering.
  • Collaborate. Be the one who proactively brings ideas to the tax pro’s table and gives clients the tools to have better conversations with their preparers.
  • Specialize. Focus on the tax implications relevant to your clients, whether it’s retirees, physicians, or business owners.
  • Practice. Get familiar with reviewing returns (we have a special checklist for you), asking better questions, and talking through the tax impact of financial decisions.

 

Clients want (and expect) you to have this level of tax fluency, and that doesn’t mean memorizing the entire tax code. It means knowing your lane and driving in it with confidence.

 

The advisors who stand out aren’t the ones who try to do it all – they’re the ones who know how to integrate tax planning effectively into their process while staying firmly within their compliance guardrails. That takes clarity, intention, and sometimes, a little outside perspective to make sure your firm’s structure is truly supporting the value you want to deliver.

 

If you’re looking for a second opinion on your current setup and whether a move might make sense for compliance or any number of other reasons, connect with our friends and Summit sponsors at Muriel Consulting. They’ll help you assess your options and find the best fit for your goals.

 

Happy Tax Planning,

 

Steven Jarvis, CPA