As a business owner, you are likely aware of the importance of having a tax professional. Knowing the different types of tax professionals and how to use them can help you make the most of your tax situation and ensure you comply with the law. This blog will discuss the different types of tax professionals available and how they can help you with your business.
Businesses of all sizes need tax professionals to help them manage their taxes and remain compliant. Small businesses, corporations, and even sole proprietorships require different types of tax professionals to help them manage their taxes and financial obligations. The most common types of tax professionals include tax accountants, tax attorneys, enrolled agents (EAs), and tax preparers.
Tax Accountant
A tax accountant is a person with considerable knowledge of accounting and taxation. They are usually CPAs and certified tax advisors and can provide tax advice, prepare taxes, and represent you before the IRS. Some firms will have a tax department that employs multiple tax accountants. Tax accountants are especially helpful for more complicated tax plans. They can help you with estate planning, investments, charity donations, retirement planning, and more. They can also advise reducing your tax burden through deductions, credits, or other methods. Tax accountants can represent you during an audit or help you navigate legal problems. When hiring a tax accountant, you should verify their credentials and be sure they’re current on the most recent tax laws.
Tax Attorneys
A tax attorney is a lawyer who specializes in tax law. They are beneficial in more complicated tax situations. A tax attorney can provide legal advice and representation in an audit, help you defend yourself in tax court, and help you file an offer in compromise with the IRS. Tax attorneys know the most recent tax laws and are up to date with changing legislation. They can also advise on restructuring and reorganizing businesses to reduce taxes and negotiate settlements with the IRS if they audit or investigate your taxes. Tax attorneys can also represent you in any legal matters related to your tax situation and help with international tax matters. They often charge higher rates for their services, which may be the best option for businesses with complex tax needs. If you need help navigating the complex world of taxation, a Tax Attorney may be the right choice.
Enrolled Agents
An enrolled agent has passed a stringent exam given by the Internal Revenue Service. Enrolled agents are the only non-attorneys who can represent taxpayers before the IRS. They are authorized to practice in all areas of taxation, and their certification is renewed annually by the IRS. Enrolled agents can represent individuals and businesses in all tax matters, from preparing and filing taxes to representing you in an audit. They typically charge competitive rates for their services and can provide a wide range of tax advice. They can also help you file an Offer in Compromise with the IRS to help you reduce your tax bill. Some enrolled agents may be independent third-party fiduciaries who can handle more complicated tax planning and dispute resolution.
Tax Preparers
A tax preparer is a person or business that prepares tax documents such as tax returns, forms, and other related paperwork to be submitted to the government. They are usually not CPAs, but they can help you file your taxes quickly and accurately. They can also help you ensure you comply with the tax laws and filing deadlines. Tax preparers typically work as part of an accounting firm but can also work independently. They are knowledgeable about different kinds of tax deductions and credits. Tax preparers can provide various services, such as reviewing your income and expenses to determine the taxes owed, preparing and filing your tax return, and helping you take advantage of available deductions and credits. Some tax preparers may even be able to negotiate settlements with the IRS in case of an
audit. Before working with a tax preparer, it is essential to ensure they are registered with the IRS and check their credentials and qualifications.
No matter the business size, it is vital to consider the benefits of different tax
professionals to ensure the most effective tax management. Small businesses may benefit from the services of a tax accountant, whereas corporations may need the specialized help of a tax attorney. The correct tax professional can help companies to save time and money on their taxes, so it’s crucial to find one that matches your needs.