Tips On Selecting An Expert Tax Advisor

Tips on Selecting an Expert Tax Advisor

by

Marym

Advanced tax planning holds the key to financial success. As the name suggests, tax planning is all about planning finances in such a way that it reduces tax liabilities but at the same time, increases tax benefits. Expert tax advisors help businesses to grow and expand and individuals to save their hard-earned money by providing valuable suggestions on paying as little tax as possible that is legally permissible.

With tax system becoming increasingly complex, taxpayers need tax advisors who are specialists in that area. Otherwise, they might end up losing more than they save. Hence, taxpayers must be very careful when selecting a good tax advisor. Here is some help in choosing the right tax advisor. * Select an advisor who is a tax expert specialized in the area where the respective taxpayer needs help. Ensure this by verifying their qualifications and credentials since only Certified Public Accountants (CPAs), attorneys, and Enrolled Agents (EAs – federally authorized tax practitioners) can represent taxpayers before the IRS in all matters. It would be good if the advisor selected is a member of any professional body so that complaints can be lodged in case of any issues. * Decide the fee of the tax advisor depending upon the complexity of the tax situation. Pay more if the tax situation is complex and pay less if it is less complicated. Avoid those advisors who base fee on a percentage of the refund. * Stay away from those tax advisors who promise large refunds even before knowing anything about the taxpayer’s financial situation. * Select a tax advisor who not only offers you advice but also signs the tax return and provides a copy of it. * Taxpayers can avoid taxes as well as evade taxes. Both saves money, but the only difference is that one leads to prison while the other leads to happiness. Hence, taxpayers must understand the fundamental difference between tax avoidance and tax evasion before approaching a tax advisor. Tax avoidance is the legitimate minimizing of taxes whereas tax evasion is the illegal practice of not paying taxes owed, through measures such as under reporting income, overstating deductions, reporting false expenses so on and so forth. Shun tax advisors who offer to help through tax evasion rather than through tax avoidance. In order to do tax planning

effectively businesses and individuals need experts in the field rather than just accountants because when filing an

individual tax return

or business tax return, it is the taxpayers and not the tax advisors who are held responsible for any consequences that may arise. Therefore, select tax advisors judiciously.

Also Read On:

FBAR

,

Entity Formation

Article Source:

ArticleRich.com