A tax advisor is a professional who helps individuals and businesses lower their taxes. They keep up with new and existing laws that regulate taxation so they can better guide their clients on reducing their liabilities. They may specialize in particular areas of taxation, such as taxes for high-net-worth individuals or small business taxes.
Tax law is the intricate body of rules that governs how much state, local, and federal governments can charge for goods and services. This includes indirect taxes, such as the sales tax charged at a corner store, as well as direct taxes, such as property or income taxes.
Individuals and businesses seek advice from tax professionals when they want to reduce their tax liability or avoid penalties. Tax advisors can help clients save money by identifying deductions and credits, lowering their taxable income, and filing correctly.
They can also assist with resolving IRS audits and collections, such as by filing an appeals request or negotiating a payment plan for back taxes. They can even offer advice on how to structure a business or personal finances in ways that can limit tax liability.
A career as a tax advisor typically begins with an associate degree in accounting, taxation, or another relevant field of study. Many people then pursue a bachelor’s degree in a related subject to advance their careers. Some universities offer master’s programs for those interested in more advanced and complex topics in the field. Steuerberatung