A tax consultant prepares, gives advice and assists individuals or companies with tax filing and returns. A consultant will suggest steps which would help the company save more money and also follow the government's tax rules and regulations Sales and Use taxes. Depending on their areas of expertise, consultants are broadly classified in to two types:
• Individual tax consultants, and
• Corporate tax consultants
A consultant's main objective is to help keep his clients' taxes to a minimum. A reputed consultant will provide necessary information to ensure that his client is following all the legalities. A consultant reviews records of his clients, make adjustments, deductions and credits will give advice based on the financial ability of people or companies.
1. Tax policies are very technical and complex and can be confusing for a lay man. An expert consultant makes the job easier and simpler, since he understands the process with ease.
2. Consultants are professionals who have undergone extensive training to become qualified before they set foot in practicing; they are experts in document reading and interpreting.
3. They are well acquainted with both government and banking policies, which enables them to handle all your taxes smartly leaving you tension-free in the area of investments.
4. Ignorance of law is not an excuse: Errors in filing your tax returns can attract heavy penalty when investigated by the Internal Revenue Service (IRS). However, hiring the expert services of a consultant, who understands the tax laws, can save you from a disaster.
5. If you have different sources of income like sale of property, self-engaged services, rentals, etc., it is only best to hire a consultant; for appropriate planning, on one hand, and for protecting your assets, on the other.
6. Tax structures change every year: An expert consultant keeps himself updated of all policies and schemes related to taxation. Therefore, he is quick and prompt in choosing a best suited option for each of his clients.
7. It is also pertinent to hire a consultant for your business enterprise, because he is capable of exposing his client to business figures in a simple and an understandable manner and at the same time maintain confidentiality of the client.
8. A consultant will keep track of your returns and complete the filing by the deadline because returns that are sent in after the deadline can often cause negative side effects for the business.
9. A consultant will help in reducing the tax liability so that the resources can be allocate towards other areas of developing the business.
10. A professional consultant will look through returns from previous financial years of a company to ensure they were complete properly.
It is the duty of every citizen to pay the Tax. The Tax that you pay plays an important role in the development of your Country (say) better roads and the development of new projects. People often think that paying some cash as Tax is not a big deal at all. However, paying Taxes has some disputes too. You'd have noted that several disagreements arise while paying taxes every year. Starting from the late payment of Tax to the extra amount taken from your account, there are many disputes which come in the way. This is where the tax consultants come into play. The tax consultants will be able to provide you with a clear plan to manage the Taxes every year without any disputes.
Keeping track of the taxes is a major problem. Tax disputes arise if you fail to pay any particular tax in the given time. As you will come up with different taxes like property tax, road tax and so on, it will be very much difficult to maintain a record of the taxes you pay. Moreover, you should also know the right time to pay the taxes because the property tax is collected once in a year whereas the road tax will be collected each time you cross the toll gate. Hence it is very much essential to hire a professional tax consultant to keep a track of the taxes and pay them in time without any disputes.
Maintaining the tax records in corporate offices will even harder. You will be well aware of the fact that big corporate companies will have to pay countless number of taxes. Moreover, the corporate Tax rates will be changing very frequently. Hence it will be a neck breaking job to keep a track of all the taxes and the updates. Thankfully there are some corporate tax consultants who are ready to help these corporate companies. Surveys indicate that the corporate tax consultants play an important role in the innovation of the companies. As the corporate Tax consultants help the companies in preparing a very effective budget plan, they help the companies to grow rapidly.
The main function of these tax consultants is that they will check and ensure that you are paying the Taxes only for what you have to. They will also keep you informed about any updates in the Tax rates. Hence you will not be losing even a single penny as extra Tax. Moreover, these Tax consultants will also let you know what items are subjected to get sales Tax. For example, sales Tax is applicable only to the items that you can handle (say) computers, groceries etc.
