It’s February, And You Haven’t Started Tax Prep Yet: What to Do Now

February arrives quickly, and for many high-net-worth individuals and families, tax preparation may still be sitting on the to-do list. If your financial life includes multiple income streams, investment accounts, business interests, trusts, or philanthropic strategies, tax season is not something to rush.

At Sequoia Financial Group, tax preparation is not a last-minute task; it is a coordinated, proactive process. Importantly, the responsibility for managing that process does not rest solely on you. Your Sequoia Financial Group and tax team are here to help you every step of the way.

Why February Is a Critical Moment, but Not a Red Flag

If you haven’t started tax prep yet, you are not behind, but the window for thoughtful planning is narrowing. High-net-worth tax returns often depend on delayed or staggered documentation, including:

• K-1s from partnerships, private equity, or alternative investments
• Brokerage and custodial reporting across multiple institutions
• Trust, estate, or gifting documentation
• Business income, deductions, and entity-level reporting
• Charitable contributions, donor-advised funds, and carryforwards

The IRS has repeatedly emphasized that complex returns require additional time, accuracy, and coordination to reduce errors and audit risk. Waiting too long can lead to rushed decisions, missed opportunities, or unnecessary extensions.¹

The Risk of a Fragmented Tax Process

For affluent families, tax preparation can break down when responsibilities are spread across multiple parties, CPAs, advisors, family offices, and custodians, without a clear quarterback.

Common issues you could encounter include:

• Incomplete or inconsistent data shared with tax professionals
• Missed opportunities for proactive tax strategies
• Last-minute scrambles for documents or clarifications
• Extensions filed by default, not by design

At Sequoia Financial Group, we can help remove this friction. Your advisory team works in lockstep with your tax professionals to ensure nothing falls through the cracks, and nothing is left until the final hour.

What to Do Now: A Coordinated, Advisor-Led Approach

If you are starting in February, the most important step is not gathering paperwork; it is engaging your Sequoia Financial team.

We take the lead on:

• Coordinating with your tax professionals to align timelines, responsibilities, and expectations
• Reviewing income sources, investment activity, and planning strategies that impact your return
• Identifying planning opportunities related to capital gains, charitable giving, entity structures, and estimated payments
• Accurate, timely delivery of documentation across custodians and entities

This integrated approach helps reduce stress, improve accuracy, and create a smoother path from preparation to submission. According to the IRS, proactive organization and early coordination significantly reduce filing errors and delays, particularly for complex returns.²

Tax Prep Is Not Just Compliance, It’s Strategy

For Sequoia clients, tax preparation is not a standalone event. It is part of a broader wealth strategy that connects tax planning with investment management, estate planning, business strategy, and long-term goals.

Starting now gives your team time to:

• Test tax outcomes before filing
• Evaluate extension decisions strategically, not reactively. If an extension is necessary, it will be important to determine and coordinate appropriate tax payments to avoid penalties and interest that begin to accrue on unpaid tax liabilities.
• Inform forward-looking planning for the rest of the year

Take the Next Step Now

If tax preparation is still on your list, now is the moment to act. Let your Sequoia Financial team help with the process and guide it forward with clarity and confidence.

Contact your Sequoia Financial Group advisor today to begin your tax review and move confidently toward submission.

 

 

Sources

1. Internal Revenue Service. Tips for Taxpayers with Complex Returns. IRS.gov, 2024.
   1. https://www.irs.gov/newsroom/taxpayers-with-complicated-tax-returns-can-use-irs-free-file
   2. https://www.irs.gov/help/find-information-on-complex-tax-topics
   3. https://www.irs.gov/newsroom/common-tax-return-mistakes-that-can-cost-taxpayers
2. Internal Revenue Service. Avoid Common Tax Filing Errors. IRS.gov, 2024.
   1. https://www.irs.gov/newsroom/errors-taxpayers-should-watch-out-for-when-preparing-a-tax-return
   2. https://www.irs.gov/taxtopics/tc303