Who is a Tax Advisor?

A tax advisor is a financial expert who has a vast knowledge of tax, accounting, tax law, and all the tax-related work. Tax experts help the taxpayer to reduce the tax payable amount by providing the best tax advisory as per the Tax law. The services a tax consultant can offer tax attorneys, Certified Public Accounts (CPAs). Licensed agents and another financial advisory. A tax advisor is also known by the name Tax consultant.

What Does a Tax Advisor Do??

A tax advisor either can provide personal advisory services as self-employed or can work for an organization. Under both situations, the tax advisor is responsible to bring down the tax liabilities for clients by analyzing the expense and the salary of the taxpayer. Moreover, they can file tax returns for their clients. A taxpayer who faces any emergency like the death of a spouse, marriage, divorce, childbirth, purchase of a new home, job loss, etc, should consider the expert advice of the tax advisor. The tax advisor also saves his client from paying a late penalty fee or any other punishment for not filing the tax returns on time.

Tax Advisor is in Detail

A taxpayer – an employee, business, or any other organization with complicated financial investment can seek the advice of a tax advisor expert to minimize the tax payable amount to the government or any tax receiving authority.

The taxpayer analyses the whole situation first and the expert advisory will depend on the complexity of your financial status. For example, a person who is planning for retirement will receive different advice from the person who wants to file the tax return of his/her startup. Even a real estate trader needs an advisory from an expert in commodity trading.

The main objective of the tax advisor is to reduce the payable tax of the client and filing returns on time by avoiding any late penalty fee. A tax advisor saves your money and helps you to get the benefits of filing tax returns for your business or salary.

Things To Consider While Hiring a Tax Advisor

Following are the features a taxpayer should consider while hiring a Tax Advisor

  • Check if they have a Preparer Tax Identification Number or they are CPA, EA, or tax attorney or not.
  • Check out if the respective is new in this field or has work experience in your industry.
  • A tax advisor should be available especially while filing taxes for the financial year. Check whether they are available to consult you.
  • Check whether they e-file the returns or not. The IRS requires a preparer with more than 10 returns to e-file then.
  • Ask them how they maintain the confidentiality of your personal and professional details.

Frequently Asked Questions

How much does it cost for a tax advisor?

The cost of the tax advisor services depends on the type of services you are taking. Suppose if you are taking advice at a personal level, the cost will be different when you will hire them to file your company tax returns.

Is it worth getting an accountant to do your tax?

Yes, it is worthy to hire an accountant for your tax returns. You might not need a tax advisor for all the financial years. But, if your taxes are complex, it is better to hire a professional tax advisor.

How do I choose a tax advisor?

Check out their PTIN, CPA, law license, fees, and experience of the tax advisor while hiring him/her for the tax advisory or accountancy services.

Can I file my taxes myself?

Yes, you can file tax returns by yourself through online mode. But, if you are facing difficulties while compiling your taxes, you can hire a professional tax advisor.