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How Do You Vet Vendors and Tax Strategies at TaxPlanIQ? 

At TaxPlanIQ, we know your clients’ trust depends on the quality, support, and integrity of the strategies you consider. Before a strategy is added to our Strategy Library, we conduct a structured due diligence review designed to evaluate how the strategy works, the authority supporting it, its potential risks and limitations, and the requirements for responsible implementation.

1. Strategy Due Diligence

Our Tax and Legal teams evaluate each strategy across several key areas.

How does the strategy work?

We review the mechanics and factual structure of the strategy, including relevant entities, ownership, financing, transactions, and economic substance.

What authority supports the tax position?

We review applicable Code provisions, Treasury Regulations, relevant cases, IRS guidance and administrative materials, and other authority supporting the strategy. Where tax or legal opinions are provided, we consider those materials as part of the overall review while also evaluating the nature and weight of the underlying authority.

We also look for contrary IRS positions, listed or reportable transaction considerations, and areas where authority may be limited, unsettled, or subject to differing interpretations.

What limitations or taxpayer-specific issues may apply?

Depending on the strategy, we evaluate issues such as basis, at-risk and passive activity limitations, valuation and appraisal requirements, economic substance, disclosure and reporting obligations, recapture considerations, and other limitations that may affect the anticipated tax treatment.

Can it be implemented and documented responsibly?

We assess implementation requirements, required documentation, necessary valuations or appraisals, professional involvement, applicable filings or disclosures, and other steps necessary to properly execute the strategy.

What risks or unresolved issues remain?

Our review includes supporting documents and information provided by the vendor, known audit or reporting considerations, and any material assumptions, unresolved authority, or areas requiring heightened professional judgment.

TaxPlanIQ's Tax and Legal teams use the results of this review to identify material risks and assign the strategy an appropriate Risk Level. Higher-risk strategies receive heightened scrutiny and are presented with additional risk information to help advisors evaluate them appropriately.

2. Vendor Due Diligence

When a strategy involves a third-party vendor, the vendor is also reviewed. Depending on the vendor and strategy, our review may include:

  • Company background and reputation: operating history, leadership experience, insurance coverage, and known regulatory or legal concerns.
  • Vendor track record and support: experience with the strategy, advisor and client support, and handling of questions, complaints, or disputes.
  • Compliance practices: relevant compliance procedures, data privacy and security practices, and available independent reviews.
  • Transparency: clarity regarding costs, risks, contractual terms, refund policies, and ongoing support.
  • Education and documentation: materials available to help tax professionals understand the strategy, evaluate its application, and support appropriate implementation.

3. Ongoing Monitoring

Our work does not end when a strategy is added to the Library. Our ongoing review may include:

  • Re-evaluating strategies based on new legislation, IRS guidance, cases, enforcement developments, or other relevant information.
  • Reviewing material changes to a vendor's offering, structure, documentation, or terms.
  • Considering feedback and questions received from the TaxPlanIQ advisor community.
  • Updating risk classifications, educational materials, disclosures, or availability when new information warrants it.

4. What Our Review Means

Publication in the TaxPlanIQ Strategy Library means that, based on the information available through our diligence process, we believe the strategy is appropriate to educate tax professionals about when presented with its assigned Risk Level and applicable disclosures.

Publication does not mean that TaxPlanIQ guarantees a particular tax result, endorses every position or representation made by a third-party vendor, or has determined that a strategy is appropriate for every taxpayer.

Tax strategies—particularly those assigned higher Risk Levels—may involve unresolved authority, differing professional interpretations, or outcomes that depend heavily on taxpayer-specific facts, documentation, and execution.

Tax professionals remain responsible for independently evaluating the applicable authority, their client's individual facts and circumstances, relevant limitations and disclosure requirements, and whether a particular strategy is appropriate for that taxpayer.

TaxPlanIQ does not publish proprietary scoring methodologies, privileged or confidential legal materials, or internal diligence tools.

This overview is for educational and informational purposes only and does not constitute taxpayer-specific tax or legal advice. Tax professionals should exercise independent professional judgment and consult appropriate counsel or other specialists when warranted.