Is A Tax Advisor And Why Do You Need One

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Tax advisors, also known as enrolled tax agents or certified public accountants, are accounting professionals who have advanced training and knowledge of law. The services of a tax advisor are usually opted for in order to minimize payable tax while remaining compliant with the law in complicated financial situations. Tax advisors include Certified Public Accountants (CPAs), enrolled agents and financial advisors.

Job of a tax advisor:

Any tax-paying entity, such as an individual, partnership, corporation, trust, etc. who has a complex financial situation can seek a tax advisor’s consultancy. This consultancy is needed to minimize the tax of a taxpayer to the authorities by lawful means. Depending on the situation, a tax advisor recommends suitable remedies and services. For instance, an individual planning for retirement will get a different advice in comparison to an entrepreneur looking to start up a business.

Tax advisors understand the laws regulating individual and business taxes and are, therefore, instrumental in guiding taxpayers on how to comply with federal, state, and local rules. Advisors are required to stay up-to-date on the latest federal and state requirements so as to be effective when providing advise on current tax topics.

Tax advisors may work for an agency or be self-employed. Either way, their task is to find efficient ways for clients to legally lower tax liability, compute taxes on diverse investment portfolios, find the right deductions and credits applicable, etc. They also prepare and file tax returns for their clients. It will be a wise decision for a taxpayer to opt for the services of tax advisor if he/she is experiencing one of the following situations:

A major life event involving money
Death of spouse
Marriage
Divorce
Birth or adoption of a child
Purchase of a new home
Loss of job

Why do you need a tax advisor?

A good qualified tax advisor can save plenty of your cash that would go to the government as tax. Tax advisors possess the proficiency to understand the complicated and often confusing U.S. tax code.

The actual size of the U.S. tax code is 2,600 pages long, although explanations and all past tax statutes push that number up to 70,000 pages. Hidden inside those pages, are both trap doors and tax breaks that average Americans likely would not recognize, but a professional tax advisor would.

If you think you need tax consultancy for your financial situation, then make sure you find a good and reputed tax advisor from Arlington without any delay.