What’s a tax consultant, and why do you need them?
Tax consultants, also know as tax advisors, are experts in tax law, planning and compliance. They serve businesses and individuals alike by staying current on new tax law and positioning taxpayers for short- and long-term tax optimization. A tax consultant typically expands on the role of tax preparer. While tax consultants prepare tax returns, they also often work closely with clients throughout the year to ensure client tax liability is minimized. Don’t assume that hiring a tax consultant is only for the rich. Hiring one could cost you a few hundred dollars, but it might also save you a few thousand dollars or much more down the line.
What does a tax consultant do?
They know all about state and federal regulations that businesses and individuals must abide by when they file their taxes. When you hire a consultant, he or she will give you advice over the phone or in-person about your filing options. Some other aspects they cover include:
-Collecting, organizing and preparing tax documents and returns.
-Evaluating a client’s financial and legal circumstances to determine tax liabilities.
-Assisting clients with tax issues during and after a significant life transition, such as a marriage, divorce, death of a spouse or birth of a child
-Completing complex tax forms and schedules that most tax preparers are unfamiliar with.
-Representing a client in dealings with the IRS or other tax collection agencies
What is the difference between accountants and tax consultants?
In general, a tax consultant is a professional who is trained in tax laws. If you want any legal tax advice from a tax advisor, he must be a practitioner of tax related issues or running a tax advisory firm. At the same time he must be a holder of certificate of practice. Accountant is a more general, all-encompassing term. An accountant could be a tax advisor, but not necessarily. Not all accountants do taxes. Some accountants do things like preparing financial statements, journal reconciliation, budgeting, etc. A tax advisor could be a CPA, lawyer, Enrolled Agent or just somebody with no license at all that calls themselves a tax advisor, because they prepare taxes.
Top 5 reason why you should hire a tax consultant:
1)Get all your deductions – A tax consultant can support you by easily identifying these potential deductions throughout the year and advise you how to make strategic decisions for year-end deductions. A skilled and experienced tax consultant can recommend you effective ways to save on taxes without getting into trouble with the IRS or complicating your financial situation. For example, a tax consultant can find significant deductions or tax credits you may have missed, helping you save hundreds or even thousands of dollars, in return for a comparably small fee.
2)Save time – An average, it can take up to 8 hours to compile, dig up records and check for write-offs, and double check all your receipts before you can start to file your taxes.
3)On-going Advisor – You can still have your tax consultant as your tax advisor even though you’re no longer officially hiring him or her as your consultant. This way, you will be able to continuously ask for updates or advice as and when you needed them.
4) It’s always safe and legal – When in doubt call an expert. Hiring a registered tax consultant to keep your tax records in check is always safe and legal, so what better help than from a professional?
5) Tax consultant vs tax software – Tax software has become more and more popular in recent years. As a result, millions of Americans across the country are doing their taxes on their own. Unfortunately, software is no replacement for a professionally trained tax consultant. It can’t get to know you and your financial situation on a personal level to ensure you’re taking advantage of all possible deductions and credits. It also can’t provide you with the peace of mind that your taxes were filed correctly. A tax consultant can offer all this and more.
Our Accounting and Tax Consulting Practice can help both individuals and businesses.
Depending on the specific situation we can provide accounting with your preferred software or no software, help in paying estimated taxes, preparing your annual tax return or give specific advice on filling out your forms. We can also help with filing extensions, amendments representing your interests before the IRS regarding audits, appeals or collection issues.
We will make sure that all the necessary forms regarding your federal and Massachusetts state taxes are prepared and your interests are represented in the best possible way before the IRS and local tax agencies. Contact us now!