When a client recently expressed concern about an unexpectedly high tax bill, Mark Reitsma CFP®, partner at Regency Wealth Management mentioned it to his colleague Timothy Parker CFA, and they couldn’t think of how that happened given what they know of the client. Mr. Parker, partner at Regency Wealth Management phoned the client to explore the situation and had her come in with her tax documents. Reitsma and Parker immediately spotted an error in her professionally prepared tax return. Their intervention resulted in an amended return that will save the client between $10,000 and $15,000 this year.
“Our team at Regency takes our fiduciary responsibility to clients very seriously,” Mr. Parker said. “We are charged with managing their significant capital investments and financial affairs while they are occupied with the ordinary duties of life. To be effective in this role, we have to be thoroughly acquainted with their finances and able to apply that information in numerous situations for their benefit.”
That in-depth knowledge paid off during a conversation with one client about her tax bill. The short phone call raised red flags for Mr. Parker, who has advised the client for several years. During a follow-up meeting, he noticed that an insurance company distribution had been counted twice. The error stemmed from a duplicate notice of the distribution from the insurer. The accountant who prepared the return had not recognized that the notices were the same, so the distribution amount was erroneously reported twice..
“Solid client relationships are at the core of what we do,” said Andrew Aran, a partner at Regency Wealth. “Comprehensive knowledge of our clients’ finances helps us to identify discrepancies and proactively solve problems — like reducing a tax bill to the correct amount.”