Tax advisors are professionals with qualifications and expertise in tax laws. They put in their extensive knowledge and experience in formulating your tax strategy. A tax advisor’s role depends on the client’s needs within the tax regulations.
A tax advisor can have a title of a CPA, an attorney, or an Enrollment Agent. The main role of the tax consultant remains to minimize the tax liability of a client within the permitted regulations. Compliance with tax laws is obligatory, not optional, hence is as important as reducing the tax burden.
Who Needs A Tax Advisor?
Individuals, businesses, trusts, and other types of entities, all need to comply with tax regulations. Even if you do not pay taxes, you may still need to file for tax refunds and credits. Individuals with dependents and joint tax filing require tax consultation. The complexities and changing regulations, demand for certain skills. A tax professional is well versed with taxation laws and changing impacts.
Businesses require tax consultation year round not just with the tax season. All businesses need to file for estimated taxes. They need advisory on tax planning, withholdings, VATs, Retirement planning, sales, and corporate taxes. Several financial aspectsrequire expert advice from a specialist.
You need a tax advisor, as an individual or a business owner if:
- In need of professional advice on tax planning
- Looking to save costs and time
- Need to reduce the tax liability with compliance with the regulations
- Could benefit from a year-round trusted partner
- Need mitigate the financial risk for your business
- Require industry specialists such as a Dental CPA’s expertise
- Want to outsource your tax filing to a trusted partner
Keeping up with the tax regulatory changes isn’t an easy task. For example, many businesses require to comply with current changes in IRS tax regulations with Covid 19 relief packages such as PPP relief options.
Why You Should Consult With A Tax Advisor?
If your business passes on taxes to you as a business owner, you should hire the same tax professional for both tasks. Before that,you should consult an expert on the right entity formation. That’s the reason we say, tax advisory starts well before filing taxes.
You need a tax consultant from tax planning, to the tax filing, and even after filing the returns. IRS may send you an audit mail requiring explanations on certain points. A professional will represent you in the IRS audits and provide the necessary explanations. The audit representations always require expertise and backing of records with proofs.
Here are a few compelling reasons to consult a tax advisor.
You Need Advice on Business Taxes
Business taxation is complex, unlike other laws, small changes in tax regulations may affect your tax returns quickly. Your business tax planning will begin well before the year-end tax season. Estimated taxes are filed quarterly or monthly. Your employer’s retirement plans will affect the year-end tax filings. Your pass-through income will affect your income taxes, and so on…
There are several ways a tax plan can affect your final returns. Say, your depreciation methodology will affect your business costs and returns, hence the tax liability. The itemized deductions and estimates will also affect your net tax returns by the year-end.
You must pay your business taxes as you earn income through estimated taxes. Underpayment of estimated taxes can result in penalties from the IRS. It means you need a dedicated tax professional who can advise you on tax minimization and NOT tax EVADING.
Outsource Tax Filing To an Expert
Well, perhaps you are not as well versed with IRS tax regulations as experts. You need to handle the state and local taxes as well. Then you’ll need an expert to handle the tax filings.
Outsourcing the tax filing remains the most popular choice for the US tax filers. The prime reason behind it is the expertise and skills required to comply with tax regulations are infrequent.
Save the Time, Money, and Hassle
Perhaps you are well versed with the taxation laws with federal and state regulations. Yet consulting a professional tax advisor will save you a lot of time. The final costs with professional fees and tax minimization will be lower. Not to forget escaping IRS penalties for errors in tax filings.
You should focus on the core business activity than tax calculations. As a business owner, you know it the best, “time ismoney”.
Talk to Your Tax Advisor
Finally, you definitely need to consult a tax advisor if you feel comfortable talking to a human rather than a robot. A professional advisor will be there for you whenever you need to consult. The human touch will make a whole lot of difference in your tax consultation program.