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.

2. Internal Revenue Service. Avoid Common Tax Filing Errors. IRS.gov, 2024.

- https://www.irs.gov/newsroom/errors-taxpayers-should-watch-out-for-when-preparing-a-tax-return
- https://www.irs.gov/taxtopics/tc303

Investment advisory services offered by Sequoia Financial Advisors, LLC. Registration as an investment advisor does not imply a certain level of skill or training.
This material is for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Diversification cannot assure profit or guarantee against loss. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. Sequoia Financial Advisors, LLC makes no representations or warranties with respect to the accuracy, reliability, or utility of information obtained from third-parties. Certain assumptions may have been made by these sources in compiling such information, and changes to assumptions may have material impact on the information presented in these materials. Sequoia Financial Advisors, LLC does not provide tax or legal advice.It is fine. We do help coordinate tax paperwork. Make sure they have the tax disclosure: The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation. Clients requesting tax return or estate preparation services are referred to a commonly-held affiliate, Sequoia Tax Services or a third party and not Sequoia Financial Group.

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