Tax advice is the expertise that a professional provides in the area of tax law and finance. They use their knowledge of current and proposed tax laws to help clients manage their income taxes and business transactions. They also assist clients with filing and resolving disputes related to tax matters.
A professional who provides tax advice can work for a company or as a self-employed individual. They are usually well-versed in various tax topics, such as personal and corporate taxes, excise taxes, property taxes, sales and use taxes, and payroll taxes. They can provide advice on maximizing deductions, reducing tax liabilities, and navigating the ever-changing tax code.
People seek out tax advice when they are unsure how to handle complex financial issues or if they have an uncertain tax situation. This could include an increased income from a new job, an inheritance or the sale of a house, or even a divorce.
Other reasons a person might seek tax advice include being audited by the IRS, or having questions about their W-4 withholding. Tax advisors can help ensure the correct amount of tax is being withheld from each paycheck and provide advice on how to change this withholding based on life changes, such as getting married or having children.
Unlike tax return preparers who typically only charge a flat fee to file a client’s returns, professionals offering advisory services can justify their costs by demonstrating how much they save their clients in taxes. They can also offer insight into the many available tax deductions and credits for which their clients may be eligible. Steuerberatung