Do Financial Advisors Prepare Tax Returns for Clients?

Financial advisors engage in a wide variety of financial areas, including tax return preparation and tax planning for their clients. Many, but not all, financial advisors specialize in tax issues and provide comprehensive tax advice to their clients, including tax problem resolution, tax planning, and return preparation as well as preparing estate, gift, and trust tax returns. Many financial advisors who do taxes for their clients typically hold relevant certifications, such as certified public accountant (CPA) and certified financial planner (CFP).

Tax Services

Typically, financial advisors work with their clients on specific tax issues, but they can also engage in tax preparation services. Financial advisors sit down with their clients and work with them to maximize their tax returns and cash flow. Financial advisors typically gain insight into each client’s financial goals and unique situations, and only then do they provide advice on tax planning and tax preparation.

Clients who face tax problems typically seek the services of financial advisors who can help them resolve their tax issues or mitigate the tax impact on their balance sheets. Financial advisors often help their clients resolve their tax problems.

Tax Certifications

Financial advisors who provide tax-related services typically obtain various professional certifications that can help them boost their knowledge of tax laws and increase their reputations among clients. The most common certifications include the American Institute of CPAs Certified Public Accountant and Tax Certification from the National Association of Certified Public Bookkeepers.12 Also, financial advisors who specialize in doing taxes choose to become enrolled agents—tax return preparers registered with the Internal Revenue Service (IRS).3