If you’re looking to minimize your tax liability and maximize your returns, consider hiring a tax advisor. These professionals specialize in identifying and capitalizing on tax deductions and credits, as well as preparing and filing taxes for individuals and businesses. They also offer guidance on the tax-related implications of specific transactions and business structures, and provide expertise in resolving disputes with the IRS. They can help you understand how major life changes like getting married or divorced, buying a home, or moving could impact your tax situation, as well as calculate the effects of exercising stock options before a move or retirement.
A tax advisor will likely have a bachelor’s degree in accounting, finance, or a related field of study. They may also be credentialed as a Certified Public Accountant (CPA), enrolled agent, or financial professional. A CPA has passed an exam demonstrating their knowledge of the rules and regulations of the IRS and the ability to interpret complex accounting and tax information. Those who are not CPAs or attorneys can still practice as a tax advisor, but must follow the IRS’ Circular 230 guidelines for representation before the agency.
A tax advisor will usually charge a fee based on the complexity of their work and their level of experience. This can vary significantly between different providers, so be sure to shop around before choosing a tax advisor. Some people choose to hire a tax advisor when making significant life changes, while others seek their expertise on an ongoing basis to help manage their finances and plan ahead. Steuerberater Hattingen