As tax season approaches, (I hope) nearly everyone is preparing and scheduling appointments to get their tax forms prepared and filed. Good for you. With the speed and ease of retail franchises such as HR Block and Liberty Tax or even free online software, most consumers do not need to worry too much about where or how they will complete their tax returns before the filing date. Nevertheless, there are those that dread tax season because:
They have multiple sources of income, such as a two-income household; They operate a business; They make a lot of money; They have multiple types of income, such as wages from a job, income from a side business, retirement income, or income from investments; They own personal or business assets that they may have sold or given away during the year.
Then… what do these individuals do? Which is superior, a tax preparer or a tax consultant? Let’s discuss…
A Reliable Advisor
Although the majority of tax preparers are reliable, they are primarily available during tax season (January to April). Those who work in retail tax franchises have part-time schedules and limited availability outside of tax season. Tax consultants are typically available throughout the year, as tax preparation and advice is their primary occupation. Another benefit of being accessible throughout the entire year is the ability to confer with tax advisers regarding transactions that potentially result in overpayment or underpayment of taxes.
Expertise with the Tax Code
It is typical for consultants to have a comprehensive understanding of the tax code. The majority of them are either Enrolled Agents (EA) or Certified Public Accountants (CPA) or have qualifications from approved programmes such as the National Tax Training School and other vocational institutes. In addition, they typically have several years of experience dealing with clients or in comparable tax preparation or consulting positions. Why is this essential? It is not to sound like a tax nerd and use language that is difficult for anyone to comprehend. Certainly not. In contrast to preparers (not all, but most), consultants rely on their understanding of the tax code to provide legal and ethical strategies for decreasing your tax liability. Also, this saves you time because they are frequently able to quickly discover the code reference required to claim a particular deduction or exclusion.
Conclusion
If you’re seeking for speed, convenience, and the cheapest prices feasible, you should choose a preparer at one of the retail franchises or even do your taxes online. Choose a tax consultant if you want a trusted advisor with a comprehensive understanding of the tax code who is available throughout the year. You won’t regret it.
Tax Consultants is a value-added, client-focused, results-driven tax advice organisation that specialises in delivering advisory service in the areas of tax preparation, research, planning, and resolution to both individuals and small businesses.