Security

For professionals to present the optimal solutions to the client and enable them to make the best choices, access to their complete financial picture is critical. Current processes can offer up incomplete information and be extremely time consuming for the client. By using the TaxStatus consent flow, the client can rest assured that only the professional they trust can have access to their comprehensive, official Verified Financials directly from the IRS.

The benefits to the client include time savings, the removal of uncertainty, and the assurance that the most accurate information is used for planning and guidance.

TaxStatus provides:

• Detailed financial baselines based on verified income, assets, liabilities, and filing history, and ongoing alerts.

• Automated tax prep checklists which clearly identifies the specific documents and information a client needs by source and document type based on the individual’s prior tax data so that the taxpayer doesn’t have to try to identify what is needed.

• Tax Return History which provides a year-by-year comparison of a client’s historical 1040 tax returns, allows professionals to quickly analyze trends, surface discrepancies, and enhance tax planning.

• Ongoing monitoring of IRS compliance, monetary, and collection activity throughout the year. 

The platform is fully compliant with SOC 2, KYC/KYB, and AML standards.

We’ve designed the process to be as simple as possible while still meeting all compliance and security requirements. By clicking a unique consent link, in <60 seconds, the client can verify their identity and electronically sign consent to authorize disclosure of their IRS financial data. TaxStatus also supports additional methods of consent, including:

• IRS 1-Click – If the individual has an IRS.gov account, they can authorize the request themselves with a single click, allowing instant retrieval of financials.

• Wet Sign – The advisor sends a pre-populated authorization form to the client, who manually signs and returns it to grant access to their IRS financial records.

TaxStatus operates within established federal law that allows taxpayers to authorize the Internal Revenue Service (IRS) to share their tax information with a designated third party for a specific purpose.

Under Internal Revenue Code §6103(c), the IRS may disclose a taxpayer’s return information to a third party when the taxpayer provides explicit consent (such as through Form 8821, Form 2848, or electronic authorization). TaxStatus facilitates this secure, consent-based authorization process before retrieving any IRS data.

The Taxpayer First Act strengthened these protections by reinforcing that tax return information obtained through consent may only be used for the specific purpose authorized by the taxpayer and may not be redisclosed without additional permission.

In short, TaxStatus acts as the secure infrastructure that makes it easy for tax and financial professionals—and their clients—to use IRS data responsibly. TaxStatus does not access IRS data independently; all access is permission-based and governed by federal law.

Tools other than TaxStatus primarily analyze uploaded tax returns using OCR (optical character recognition), which often requires human review to correct extraction errors. This approach also depends on clients or advisors to provide complete, accurate, and current tax documents. A tax return captures only part of the overall data picture, and mistakes do occur—from simple math errors to misreported income or credit claims.

In contrast, TaxStatus retrieves IRS-verified data directly from the Internal Revenue Service through secure client authorization. Tax records, account transcripts, and related financial activity are pulled electronically and automatically—reducing manual uploads, incomplete client files, and document chasing.

This provides a more accurate, complete, and up-to-date data view, including both what the taxpayer reports and what third parties (such as employers and custodians) report to the IRS. This direct data access, combined with structured reporting like the Financial Baseline and continuous IRS monitoring, gives advisors a richer and more reliable financial profile than solutions that depend on uploaded client documents.

In short, TaxStatus is built on verified IRS data pulled from the source, not on document uploads—giving advisors deeper insight, greater confidence, and a more efficient workflow.

Yes, a client can revoke consent at any time. The easiest way is to have the client visit: https://taxstatus.verifyfn.com/privacy to immediately self-remove access. We also offer a full service option that can be accessed by having the client email privacy@taxstatus.com. Either way, consent will be revoked immediately, giving clients the peace of mind that they are always in control.