A tax consultant prepares, gives advice and assists individuals or companies with tax filing and returns. A consultant will suggest steps which would help the company save more money Sales and Use taxes and also follow the government's tax rules and regulations. Depending on their areas of expertise, consultants are broadly classified in to two types:
• Individual tax consultants, and
• Corporate tax consultants
Duties of a Tax Consultant:
A consultant's main objective is to help keep his clients' taxes to a minimum. A reputed consultant will provide necessary information to ensure that his client is following all the legalities. A consultant reviews records of his clients, make adjustments, deductions and credits will give advice based on the financial ability of people or companies.
What do you gain by hiring a tax consultant?
1. Tax policies are very technical and complex and can be confusing for a lay man. An expert consultant makes the job easier and simpler, since he understands the process with ease.
2. Consultants are professionals who have undergone extensive training to become qualified before they set foot in practicing; they are experts in document reading and interpreting.
3. They are well acquainted with both government and banking policies, which enables them to handle all your taxes smartly leaving you tension-free in the area of investments.
4. Ignorance of law is not an excuse: Errors in filing your tax returns can attract heavy penalty when investigated by the Internal Revenue Service (IRS). However, hiring the expert services of a consultant, who understands the tax laws, can save you from a disaster.
5. If you have different sources of income like sale of property, self-engaged services, rentals, etc., it is only best to hire a consultant; for appropriate planning, on one hand, and for protecting your assets, on the other.
6. Tax structures change every year: An expert consultant keeps himself updated of all policies and schemes related to taxation. Therefore, he is quick and prompt in choosing a best suited option for each of his clients.
7. It is also pertinent to hire a consultant for your business enterprise, because he is capable of exposing his client to business figures in a simple and an understandable manner and at the same time maintain confidentiality of the client.
8. A consultant will keep track of your returns and complete the filing by the deadline because returns that are sent in after the deadline can often cause negative side effects for the business.
9. A consultant will help in reducing the tax liability so that the resources can be allocated towards other areas of developing the business.
10. A professional consultant will look through returns from previous financial years of a company to ensure they were completed properly.