As Ben Franklin famously stated, “nothing is certain but death and taxes.” If you find yourself in a position where your income tax liability becomes too complex to handle on your own, consult with a Steuerberater
A tax consultant prepares and files tax returns, helps clients minimize their tax liabilities and answers questions related to tax law. They may also help with business tax strategy and represent clients during IRS audits.
Tax Return Preparation
Tax return preparation services are offered by financial professionals, such as CPAs, who prepare income taxes for clients in exchange for a fee. Their services help individuals and businesses comply with federal tax laws and determine whether they owe money to the IRS or are eligible for a refund.
A professional with strong written and verbal communication skills is a plus when it comes to explaining current tax law findings or research in a way that makes sense for each client’s unique situation. They can also effectively incorporate this information into a strategy that will have the greatest benefit for the client.
Individuals who need help preparing their tax returns can receive free in-person, full-service tax return preparation assistance through the Volunteer Income Tax Assistance (VITA) or AARP Foundation Tax-Aide programs. These free programs are open year-round and use IRS certified return preparers who meet high quality standards set by the IRS. Individuals can also find qualified local preparers through the annual Filing Season Program Record of Completion list.
Tax Audit Representation
A tax audit is an examination of a taxpayer’s records by a government agency to verify the accuracy of information reported on a tax return. The IRS can conduct an audit through correspondence, in-person meetings, or field audits.
The vast majority of audits are conducted by the IRS through correspondence. These are usually focused on specific items and can often be resolved by mailing in the requested documentation. In-person interviews, however, can become more complicated and require the taxpayer to be present at an IRS office or their place of business.
A professional representative knows how to navigate these complexities. They will develop the best strategy for defending your case, assist in preparing all documents required by the taxing authority, and handle all meetings and correspondence on your behalf. They will also be able to identify any red flags that could cause the scope of the audit to expand. This is crucial in avoiding costly mistakes that may result in additional taxes, penalties, and interest being assessed.
Tax Planning
A tax consultant offers strategic advice on tax-related matters and supports individuals and businesses in complying with tax laws. They also help clients minimize their tax liability by identifying and capitalizing on tax deductions, manage their investments, and plan for future taxes. They typically have a bachelor’s degree in accounting, business, or finance and are registered with the IRS to file tax returns and represent clients during audits.
Finding the right tax consultant for you is a matter of personal preference and your unique situation. Some people find it helpful to get recommendations from friends or family members, while others prefer to use online resources that offer a wide range of qualified consultants. Whatever your method, look for qualifications such as a certification from the National Association of Tax Professionals or the National Society of Accountants. In addition, a tax consultant should have excellent written and verbal communication skills to communicate complex financial strategies clearly.
Tax Advice
As a tax consultant, you provide specialized support for clients who want to minimize their tax liability and reduce the risk of a dispute with federal and state regulators. These services include preparing and filing tax returns, researching and recommending strategies for reducing tax liability, and representing clients in disputes with the IRS.
In addition to minimizing client tax liabilities, you can also advise them on financial matters related to inheritance, charitable giving, and retirement. Unlike accounting software or general accountants, who often lack the in-depth knowledge to advise clients on complex issues, you can offer customized consultations for unique concerns and goals.
As a tax consultant, you may work as an employee for a company or independently run your own consulting firm. Regardless of the type of firm you operate, it is essential to find a suitable location that offers the right amenities to support your workflow and meet your business goals. You may also be required to attend continuing education courses and remain current on the latest changes in tax law and regulations to advance in your career.
