Tax Letter checks allow you to make sure that planning you did in the prior year shows up as expected on your client's return.
Holistiplan's Tax Letter allows users to document tax related activities over the course of the year, providing easy documentation for clients and their tax preparers when it comes time to file that year's return. Each Tax Letter section includes an editable field that indicates how that activity should be referenced in the Tax Report, so that advisors can make sure that the activity has been reported correctly on a client's tax return.
As an example, this is the screen corresponding to the "Charitable Distribution from an IRA" section in the Tax Report. Note the field at the bottom titled "How should this section be referenced in the resulting Tax Report:
The note to "see lines 4a and 4b of form 1040" will show up on the Tax Report for the year corresponding to the Tax Letter:
In this specific case, the Tax Letter check is reminding the user to check Lines 4a and 4b to make sure that the total IRA distribution (4a) and taxable IRA distribution (4b) lines are consistent with the Charitable Distribution from an IRA (or "Qualified Charitable Distribution") that the user originally included in the Tax Letter:
