Tax time…again
By Lisa Counsell
As I type these words, the view out my window is gray, wet, and bleak – exactly how I feel when I think about taxes! That makes it the perfect moment to consider my gratitude for the tax team here at TCV. Unlike other investment management firms and trust companies who outsource their tax preparation, our in-house tax team is comprised of four women who, with enthusiastic support from fellow employee-owners when the time comes for printing, sorting, and stapling, make sure everything is right in the tax world for you, our clients.
Let me say that again. Here at TCV we have a team of four women dedicated to the accuracy of every tax document for over 3,300 accounts!
Though the majority of their work begins in January, the tax team provides a critical resource to our administrators and investment managers throughout the year. Every decision to buy, to sell, to gift, and to distribute is made in the context of the potential tax effect on a given account owner or beneficiary. Your investment and relationship managers work closely with you and your tax professional in making decisions, and our tax team often provides valuable insight and recommendations to support that collaboration. This active relationship with accounts throughout the year allows the team to recognize and consider items that may have been missed, remain incomplete, or might need adjustment come tax time. Cost basis is double checked, income on irrevocable trusts is considered and sometimes passed out under the 65-day rule. Remember, the trust tax rate is compressed— often far higher than that of the individual.
Our tax team prepares the tax returns for both irrevocable trusts and grantor trusts. For you, and for our non-trust investment clients, the tax team assembles a comprehensive package including 1099s, K-1s, and accommodation schedules with details of all gifting, medical, and other special distributions that you can easily hand to your tax professional. In a single document our team provides the information your tax preparer will need to complete your return efficiently and effectively.
Though the team is often ahead of schedule, the IRS deadline for issuing 1099s is February 15th, and the deadline for filing is April 15th. We are only ahead of schedule if we are correct. Every tax document that leaves TCV does so only once it’s been checked and double checked. Our goal is never to have to reissue a corrected form.
Of all the things that matter to us, nothing is more important than knowing our clients and, in the case of taxes, we do all that we can to consider and manage the tax burden associated with being an account owner or beneficiary. We could not help you navigate the complicated sea of tax issues if we outsourced our tax work.
Our thanks…to Bobi, Angela, Jane, and Jenny for their outstanding work!