Financial Advisor Success Ep 459: Working More Collaboratively With Clients’ CPAs For Better Tax Planning (And Cross-Referral) Outcomes with Steven Jarvis

Host: Michael Kitces
Guest: Steven Jarvis, CEO of Retirement Tax Services
Release Date: October 14, 2025

Episode Overview

In this episode, Michael Kitces interviews Steven Jarvis, CPA and CEO of Retirement Tax Services (RTS), discussing how financial advisors can work more collaboratively with clients’ CPAs for improved tax planning, smoother tax return filing, and increased cross-referral opportunities. The conversation blends deep operational tips for advisor-CPA collaboration, practical process recommendations (including what to send and when), and candid perspectives on building a modern, advisor-focused tax preparation firm.

Steven shares actionable strategies to avoid tax season surprises, proactively communicate between advisors, clients, and CPAs, and build trust and efficiency into client service — all set in the context of a national CPA shortage and the increasing overlap between financial planning and tax planning.

Key Discussion Points & Insights

1. Why Advisor-CPA Collaboration Is So Challenging

• Different Mindsets and Workflows:
  CPAs are trained for meticulous accuracy, focusing on last year’s return and the “right answer”. Financial advisors, meanwhile, look forward, focusing on proactive strategy, often assuming the tax forms will “tell the full story”, when in reality they don’t.

• The 1099-R Problem:
  Financial advisors often initiate complex transactions (Roth conversions, QCDs, backdoor Roths, rollovers), but tax forms like the 1099-R lack the detail needed for correct reporting. CPAs receive these forms with missing context, creating frustration and potential for error.

  • Steven Jarvis [08:48]:
    “What might seem like great tax planning from the advisor… the 1099-R form is very, very basic… and leaves out a lot of really important details.”

• Communication Gaps:
  Key details (such as the purpose of IRA distributions) are not automatically transmitted from advisor to CPA. Without proactive communication, mistakes or client confusion (and surprise tax bills) are common.

2. What Advisors Should Communicate (And How)

• Process for Systematic Communication:
  Advisors should create an annual process to summarize taxable events for each client — not only for the client’s sake, but for the CPA’s.

• The Year-End Tax Summary / 1099 Letter:

  • Should detail:
    • Accounts clients hold and, crucially, which ones are expected to generate 1099s (including closed accounts!)
    • The nature and amount of key transactions (Roth conversions, QCDs, large distributions), timing, and whether tax withholding or estimated taxes were paid
    • Context for rollovers (to prevent them from being misreported as taxable)
  • Steven Jarvis [12:06]:
    “The advisors I enjoy working with… have some kind of year-end tax summary or 1099 letter… the client can literally click forward and send it to their tax professional… It’s just a little bit of context.”

• Why Simple Lists Matter:
  Even a basic list of “which 1099s to expect” helps CPAs avoid missing forms or misreporting.

  • Steven Jarvis [20:45]:
    “What I’m more interested in… is just hey, how many accounts are out there and how many 1099s should we be waiting on?”

• Include Closed Accounts:
  Clients often forget accounts that were closed or transferred during the year; including these avoids reporting omissions or IRS letter headaches.

  • Steven Jarvis [20:52]:
    “Make sure that you are including closed accounts… At the end of the year, they might be thinking, ‘oh well I just have those two accounts with Fidelity’. But maybe at the beginning of the year they started with four accounts with Schwab…”

3. Timing and Mutual Respect: Building Strong CPA Relationships

• Engage Early, Not in Busy Season:
  CPAs are too busy in March/April (and late December). Treat them as partners by reaching out during summer or early fall, not just at the end.

  • Steven Jarvis [28:26]:
    “If you actually want my opinion, we need to be talking during the summer or the fall… you’ve given me a chance to give input at a time where a change could be made…”

• Approach with Curiosity, Not Directives:
  Don’t just inform CPAs of what you’ve done; actively solicit their expertise and input.

  • Steven Jarvis [28:26]:
    “Even if you as the advisor, are 99.9% confident… how we approach these conversations makes a huge difference.”

• Address Potential Billing and Value Proposition:
  Upfront, clarify with the CPA whether your inquiry will result in additional billing for the client. Frame your request to highlight the benefit for both client and CPA (e.g., reducing headaches, providing context, making tax time easier).

4. Practical Tax Planning Coordination

• Using Tax Projection Software:
  Many advisors now use Holistaplan, FP Alpha, or similar tools to generate tax projections. Most CPAs appreciate these reports for the context they provide — as long as you show respect for the CPA’s expertise and don’t position yourself as a competitor.

  • Steven Jarvis [33:24]:
    “For me… it's not okay. Then we're going to rubber stamp it and send it back. But then we get to see the direction they're going in. We get to see their goals they're trying to accomplish…”

• Context and Goals Matter:
  Advisors are often more “goal-focused”, while CPAs are “math-focused”. Share client objectives (not just calculations) to help CPAs make better recommendations.

5. Building the Advisor-Oriented Tax Firm: Jarvis’s RTS Model

• RTS as Advisor Resource:
  Retirement Tax Services offers education, checklists, and scripts (Essentials membership), small-group CPA-led Q&A sessions (Premier membership), and direct tax prep for clients of advisory firms (for Premier members only), focusing on collaborative, context-rich, “moderately complex” returns.

• Membership and Pricing:

  • Essentials: $197/month for resources, checklists, and scripts
  • Premier: $497/month adds CPA office hours, small group case consults, and access to tax prep for client families; plus white-labeling and a member summit
  • Tax prep: $800–$1,200 per client family per year, focused on high-income professionals and retirees with “moderately complex” needs

• Key Processes:

  • Checklists for return reviews, reporting taxable events, home sale exclusions, etc.
  • Commitment to capacity-limited, high-service prep (max ~300 returns per preparer, vs. 800+ at other firms)
  • Systematic tracking of staffing vs. client load to avoid overcommitment and maintain service

6. The CPA Shortage and Future of Tax Preparation

• National CPA Shortage:
  Supply cannot meet current demand; AICPA is loosening requirements, and many advisory firms are hiring in-house or looking for virtual/overseas solutions.

• Implications for Advisors:

  • Bringing tax prep in-house is very challenging (hiring, compliance, workflow, seasonality mismatch)
  • Often, the real client stickiness benefit is not from same-firm prep, but from a truly collaborative client experience
  • AI and software may help, but tax prep still needs professional oversight for complexity, interpretation, and planning nuances

Memorable Quotes & Moments

• Steven Jarvis [13:58]:
  “You’re reducing the number of IRS mismatch letters… You’re reducing the surprise at tax time… we want to eliminate as many surprises as possible.”

• Steven Jarvis [28:26]:
  “Treat other professionals as professionals, the more we're going to get that mutual respect.”

• Michael Kitces [51:00]:
  “I count by working hours and get a sense as to how, how high touch you really are. You can’t be super high touch with hundreds and hundreds of clients. There just literally aren’t enough hours in the year.”

• Steven Jarvis [78:29]:
  “We’re not going to claim perfection on the front end, but we are going to take responsibility for making it right.”

• Steven Jarvis [87:28] (on his own definition of success):
  “I’ve always looked at success as my ability to do the things I want to when I want them, which might get summed up as flexibility.”

Timestamps of Key Segments

• 03:05–06:21 Why advisor-CPA relationships are often strained: “playing nice” from each side’s perspective
• 06:50–11:08 Case study of 1099-R confusion, and why custodial reporting falls short
• 11:36–14:50 How advisors can create processes to prevent tax season surprises (explaining tax impacts up front, following up with written documentation)
• 17:16–23:56 What to include in a year-end summary letter and how to build this into your standard practice
• 28:26–33:24 The importance of timing, mutual respect, and early outreach in collaborating with CPAs on tax planning
• 35:07–44:47 The RTS model: advisor membership, checklists, office hours, and offering tax prep as a service for client families
• 46:48–51:29 Realities of delivering truly “high touch” tax preparation — volume, seasonality, and service differences from wealth management
• 53:26–54:16 RTS’s “moderately complex” focus: why business-owner and trust returns are excluded — for now
• 57:26–62:26 Challenges scaling tax prep, growing slowly and intentionally to avoid client service breakdowns

Actionable Takeaways

• Establish a Year-End Tax Summary Process:
  • Each winter, generate a 1099 letter for every client capturing: relevant accounts (open and closed), key transactions (Roth, QCD, withholdings), expected tax forms, timing, and context for anything “out of the ordinary”
• Reach Out to CPAs Early and Respectfully:
  • Don’t email in March/April or December 20th! Engage CPAs as peers, seek their input in fall, and clarify if client will be billed
• Leverage Tools for Collaboration:
  • Use tax planning software, but always share goals and context, not just numbers; present yourself as a partner, not a challenger
• Ensure You’re Making Execution as Easy as Possible:
  • The biggest difference between clients who do and don’t execute your tax recommendations (e.g., Roth conversions) is whether you make it frictionless — with clear instructions, coordination, and documentation
• Weigh the Costs Before Building In-House Tax Practices:
  • Think deeply about the staffing, compliance, seasonal workflow, and risk challenges — sometimes, strengthening an external partnership is more effective

Additional Resources

• Downloadable Checklists and Worksheets:
  Steven offers his 37-point tax return review checklist, home sale exclusion worksheet, and data from Jump AI on Roth conversion follow-through — available via show notes at kitces.com/459

Tone & Style

Steven and Michael maintain an energetic, candid, and practical “nerds helping nerds” tone, balancing in-the-weeds operational guidance with humor and real-world anecdotes. The entire conversation is highly actionable and accessible both to new and veteran financial advisors.

This summary is designed for advisors and industry professionals seeking practical, actionable guidance to improve advisor-CPA collaboration, client service, and implementation of tax strategies. For tools and resources mentioned, visit the show notes at kitces.com/459.