Extremely wealthy clients sometimes encounter problems when utilizing an accountant who only occasionally handles the fiercely complex transactions of the uber-affluent.
“Many of our clients are in the top half percent [of wealth] and at that level of taxpayer we see positions taken by other firms that would not have been taken if they really knew the subject matter,” says CPA/PFS Timothy Speiss, partner-in-charge of the Personal Wealth Advisors Group at EisnerAmper LLP in Manhattan. “A tax advisor who isn’t familiar with the area may not be aware of a new revenue ruling or tax court decision that modifies an existing federal or state tax regulation or code section.”
Make sure the client’s accountant is up to the task. After all, sophisticated clients need sophisticated pros.