Tax preparers focus on tax issues, but they don't necessarily have the same extensive academic background as an accountant. The quality of tax preparers can vary widely, so it's helpful to consider different categories of preparers. Enrolled agents are eligible to represent taxpayers before the IRS. Tax specialists are the main intermediary between the company and the tax authorities.
When issues become controversial or get stuck in tax jargon, these experts help the company make the right decisions. A tax specialist is someone who has taken the necessary steps to develop specialization in the area of taxation. There are three main routes to becoming a tax specialist, each of which is open to accountants qualified by the ACA or the ACCA. In addition to actual tax returns, a tax advisor can also guide individuals and businesses toward tax-advantaged movements of money in key areas such as retirement, estate planning, investment management and small business planning.
However, choosing a tax advisor who is also a certified financial planner can give you a more balanced approach to how taxes fit your overall personal financial situation. Depending on your tax needs, a tax advisor is likely to charge you on a sliding scale: the more help you need, the more you'll pay. However, some tax professionals may also charge by the hour, for the completed tax return, or even for a percentage of their assets at stake (as a financial planner usually charges). For some people, choosing a company that includes both accountants and tax advisors is a wise option, since they will have access to both specialties under one roof and both their accountant and tax advisor will be able to work together to better meet their needs.
From the tax relief that can be requested to the times when it should be, the role of a tax specialist is to know and apply this knowledge in the best interest of the client. People who specialize in tax preparation also often help you with tax and financial planning, accounting needs, and most other financial tasks you may have. Consult a CPA to identify the credits and deductions you qualify for in order to increase your tax refund and help lower your tax bill. We offer dedicated corporate tax software (T2 and CO-1) and corporate tax and accounting services to meet the needs of Quebec business owners.
However, for those seeking specialized or more complex tax advice, it is essential to hire the services of a tax specialist. Most tax advisors who work with the general public get paid through a full tax return or service-for-service (for example, after handling a probate case or helping a client start a small business). On those pages there are traps and tax breaks that average Americans probably wouldn't recognize, but a professional tax advisor would. Tax advisors often start their lives as accountants and then take additional steps to develop a specialization in taxes, earning professional tax qualifications.
Tax laws are extremely lengthy and complex, so it's unrealistic to expect an accountant to be able to have the in-depth knowledge about them that a specialized tax advisor has. The tax code is 2,600 pages long, although the attached explanations and all previous tax laws bring that figure to 70,000 pages. .