Tax consultants or advisors are financial experts who have special training in tax law. They help individuals and businesses minimize taxation and understand tax-related strategies. Many people can benefit from their training and expertise.
In the United States, tax consultants belong to a group of individuals called “tax professionals.” This generic term describes various professions such as accountants, Certified Public Accountants (CPAs), enrolled agents (EAs), financial planners, tax preparers and some attorneys. Tax consultants have a niche position in the finance profession. They focus solely on providing tax advice to increase profitability.
One of the duties of a tax consultant is to stay current on new tax laws and tax law changes to ensure compliance by their clients. Most tax laws are confusing for the average person, and it can be hard to understand what they mean for a business. Tax consultants are knowledgeable about the laws, and they are aware of tax breaks or credits that can benefit their clients.
Consultants are also skilled in accounting. They can review financial records for credits and deductions that were previously overlooked. Their broad tax and accounting experience allows them to recommend changes that can save money for their clients.
With tax season in full swing, many people will file their annual tax returns in the coming months. While tax preparation is an obvious benefit, some companies hire tax consultants with expertise in specific areas. They may also rely on a consultant to handle the duties of a tax preparer and accountant, thus consolidating these roles into a single position.
It is important to hire a tax consultant who understands state and local tax laws as well as federal law. Michael J. Yuda is one example of a professional who offers tax consulting services in Hawaii. Like advisors in other states, those in Hawaii offer tax preparation services for state and federal income tax returns. They also prepare multi-state returns for clients who require this service, such as professional athletes and entertainment celebrities.
In addition to tax preparation, United States tax consultants help clients with tax planning for a variety of situations including marriage, divorce, pay raises, stock transactions, partnerships, investments and home purchases and sales. They also provide tax representation when a client is audited by the Internal Revenue Service (IRS) or another taxing agency.