What Is A Tax Consultant?
A tax consultant is a tax professional who has in-depth knowledge about business and personal taxes and tax strategies. Tax consultants are usually retained in order to minimize taxation while remaining compliant with the law in complicated financial situations.
Tax consultants help business owners and individuals reduce their tax liability by suggesting the best tax planning and tax reduction strategies.
Tax laws also change and so do the many rules on deductions, credits, and reportable income. For the average taxpayer, the risk of underpaying or overpaying taxes is high.
Tax consultants provide tax filers with professional advice and can also prepare and file taxes on behalf of filers. Tax consultants can also reduce the likelihood of an IRS audit and represent a tax filer in case of a IRS audit.
Tax Consultant vs Tax Preparer
A tax preparer is someone who files income tax forms for others. They usually undergo a short training program and register with the IRS to obtain a tax preparer’s number. Both Tax Preparers and Tax Consultants are technically “tax preparers” and can prepare tax returns, but a Tax Consultant typically provides many more services for their clients.
A Tax Preparer is best for people who want to have simple tax situations, simple returns and relatively lower annual incomes. A Tax Consultant is best for people who want to have their taxes prepared but also need professional advice on paying the least amount in taxes.
Robert Hall & Associates and our tax consultants specialize in providing this more consultative and advisory tax consulting services. We specialize in proving actionable tax advice to businesses and individuals on their personal taxes. Have a simple tax return? We can help with that too.
Tax Consultant Duties
Tax consultants work for public accounting firms, law offices, financial consulting firms and many even have their own independent tax preparation and own businesses. In general, tax consultants are expected to know how to collect, organize, and prepare tax documents and returns, determine the financial and legal conditions of a taxpayer, assist clients with tax issues, complete tax forms, and represent the client with regard to issues with the IRS.
Typical duties include:
- Conducting research on tax laws
- Advising business owners and individuals on their best tax reduction strategies
- Strategizing with clients to minimize tax liability
- Communicating with clients to explain tax issues
- Preparing tax returns
- Estate planning
- Representing clients in IRS audits
The consultant may be asked in some cases to review and sign off on a tax return prepared by a client. This not only reassures the client that the report was correctly processed, but may also be a part of an audit protection service offered by the tax firm. If the return triggers an audit, the consultant can represent the client before the IRS.
Anyone working as tax consultants should expect to see their work pick up during the tax filing season from January to mid-April. In early to mid-fall, there is also an increase in work as those who apply for six-month extensions in April will need their returns to be done by mid-October.
Tax advisors who are extremely knowledgeable about specific areas of the tax code may find themselves busy throughout the year.
Becoming a Tax Consultant
Tax consultants generally hold bachelor’s degrees in accounting, finance or a related field; however, because no formal certification is required, individuals often take on advisory roles after years of experience. Generally, becoming a tax preparer requires a short training course. Many states, including California, require tax preparers to complete a course that is approved by the regulatory agency. I
Tax consultants should definitely be enrolled agents. Enrolled Agents (EAs) are federally-licensed tax practitioners who may represent taxpayers before the IRS when it comes to collections, audits and appeals.
At Robert Hall, all of our tax consultants are Enrolled Agents with the IRS and our tax consultants have both the formal education and tax experience are best positioned for help you with your unique tax situation.
Tax Consultant Licensing
Tax preparers are not subject to federal licensing, but states require that a tax preparer be licensed or registered with a state regulatory agency.
Tax consultants should definitely be enrolled agents. Enrolled Agents (EAs) are federally-licensed tax practitioners who may represent taxpayers before the IRS when it comes to collections, audits and appeals.
Tax Consultant Cost
There are many types of tax consultancy services available for businesses. Some of the most common are consultants that handle property taxes, federal taxes and payroll taxes.
Pricing and costs of tax consultants depends on many factors, some of which include:
- The type of tax consulting your business needs.
Whether you hire a tax adviser for a single job or as a full-time consultant.
How much work your business has to do to fully process its taxes.
Tax Consultant Near Me
If you need professional help in your tax returns, Robert Hall & Associates’ small business tax consultants can help guide you in the right direction. Contact us today at 818-452-2641 or fill out our contact form to schedule a free consultation.
