What is the Tax Letter Checks Section of the Tax Report?

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. For example, a 2024 Tax Letter can inform the Tax Report for the 2024 tax year once uploaded to Holistiplan.

This screen below indicates that a "Charitable Distribution from an IRA" was utilized the specific tax year being summarized in this Tax Letter. 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 same tax year matching the Tax Letter, once that year's tax return is uploaded to Holistiplan.

In this specific example, 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: