Tax planning has emerged as one of the top trends reshaping wealth management. TaxStatus’ integration with Jump marks a watershed moment in this evolution. By bringing IRS-verified financial data directly into an AI-powered advisor platform, the partnership transforms tax planning from a periodic exercise to a source of ongoing financial intelligence.
The timing is critical as tax season approaches. Datos Insights research reveals a supply-demand mismatch: While 70% of advisory practices offer tax planning services, only half of these deliver it to most clients. This 35% full-coverage rate (70% × 50%) leaves the majority of HNW households receiving episodic tax help at best—despite tax optimization often mattering more than investment selection for after-tax returns.
The Technology Transformation
The constraint isn’t demand. It’s advisor capacity. Consider the traditional workflow advisors face each tax season. They request client tax returns, often encountering resistance. They manually review hundreds of line items across multiple forms. Data gets transcribed into planning software. The process consumes two to six hours per client annually, compressed into February through April.
TaxStatus’ direct IRS connectivity transforms this model, with implications for margin expansion, revenue discovery, and client retention. The platform pulls verified financial information directly from the source, analyzing thousands of data points per taxpayer. It surfaces held-away assets, business ownership structures, real estate holdings, and retirement accounts that clients may not disclose. More significantly, it monitors IRS accounts in real time, alerting advisors to tax liabilities, refunds, or audits before clients receive official notices.
The Jump integration feeds IRS-verified data directly into AI-generated premeeting briefs. What once required hours now happens in seconds. While TaxStatus already integrates with financial planning platforms for tax scenario modeling, the Jump integration represents a step up. It feeds IRS-verified data into an agentic AI workflow platform that orchestrates the entire advisor engagement cycle, from automated meeting prep to CRM updates, rather than simply populating planning tools for analysis.
The most underappreciated benefit of the integration is asset discovery. Clients forget to mention the rental property in Florida, the old 401(k), or the S-Corp their accountant established. IRS-verified data solves this problem definitively. The government already knows what clients own—it’s on their tax returns. IRS connectivity gives advisors full visibility, revealing otherwise hidden cross-selling opportunities and planning gaps.
Real-time alerts fundamentally alter the advisor value proposition, enabling advisors to contact clients about unexpected tax liabilities before IRS notices arrive and identify Roth conversion opportunities as they occur, rather than months later.
This proactive posture directly addresses fee compression by delivering ongoing value that justifies retainer relationships rather than project fees. The difference matters for client acquisition too. Some advisors use tax preparation as a gateway to wealth management relationships, though the episodic nature of tax filing conflicts with relationship-based advisory work—a tension that automated IRS integration helps ease.
Competitive Implications
TaxStatus’ direct IRS integration positions it as infrastructure rather than point solution. While the IRS offers data access through programs like the Data Retrieval Tool and Income Verification Express Service, competitors like Covisum, FP Alpha, and Holistiplan have focused on OCR and PDF analysis. Building IRS connectivity requires rigorous security protocols, compliance infrastructure, and taxpayer consent mechanisms—a 12-to-18-month development cycle that will challenge many vendors.
Competitors will pursue similar integrations, but TaxStatus’ head start matters in a market where advisory practices make multiyear technology commitments. By the time others launch comparable features, TaxStatus will have refined its experience and captured market share.
The technology landscape will bifurcate between automated intelligence platforms and legacy analysis tools. Advisors selecting vendors should evaluate architectural positioning, not just current capabilities. The difference between pre-tax and after-tax performance often overshadows investment selection. Tax planning strengthens client relationships, increases wallet share, and transforms advisors from portfolio managers into wealth orchestrators.
The recent expiration of Tax Cuts and Jobs Act provisions at year-end 2025, evolving regulations around retirement distributions, and the continued proliferation of Roth conversions and qualified charitable distributions create both complexity and opportunity. Advisors who build tax planning infrastructure today position themselves to capitalize on regulatory shifts. Those who delay cede this territory to competitors or CPAs expanding into wealth management.
Implementation Realities
The shift to automated IRS integration isn’t without considerations. Advisors must secure client authorization for IRS data access, navigate state-specific regulations around tax advice, and train staff on new workflows. Firms should establish clear boundaries between tax planning (identifying optimization opportunities) and tax preparation (filing returns), particularly for practices without CPAs on staff. However, these implementation challenges pale against the competitive risk of remaining dependent on manual, episodic tax analysis while rivals deploy continuous intelligence.
What Advisors Should Do
The TaxStatus-Jump integration represents the future arriving ahead of schedule. As advisors prepare for another tax season, they should evaluate whether their current approach positions them for continuous intelligence or leaves them mired in periodic analysis. Solutions offering direct regulatory data feeds, AI-powered insights, and seamless integration will separate leading advisory practices from the pack.
Want to learn more? Contact me at [email protected]. Clients can access Datos Insights’ Wealth Management Market Overview: Tax Planning for comprehensive vendor analysis.
