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Adding a Legacy Division: Providing Taxpayers with Peace of Mind

By Sidney Kess, Carol R. Kaufman, James R. Grimaldi, and James A.J. Revels
CPA Journal
September 2018 Issue

Because of the Tax Cuts and Jobs Act (TCJA), more individuals—90% of taxpayers, by some estimates—will decide to prepare their own tax returns. With the simplification of the Form 1040, more people will use the standard deduction and services like Quicken and TurboTax. Consequently, tax preparers should expect to lose a significant portion of that business. There is growing competition for that business, as well; other professionals and other kinds of financial firms—banks, financial planners, and insurance companies—are doing tax work for almost nothing. In addition, with married couples now able to shield as much as $22.4 million from federal estate and gift taxes, fewer wealthy individuals will focus on estate planning.

This potential reduction of tax return services and increase in estate exemptions means that CPA firms specializing in tax preparation and financial planning must think of new ways to raise revenue. One such source of revenue may be a legacy division, which assists individuals with compiling all the information about their assets that will be needed when the time comes to plan for their death.


Published with permission from the CPA Journal.

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