As tax season approaches, most people (I hope) are geared up and make an appointment to prepare and file their tax returns. Good for you. With the speed and convenience of retail franchises like HR Block and Liberty Tax or even free online software, most people don’t have to worry too much about where or how they’ll complete their tax returns before the filing deadline. But then, there are those who dread the tax reporting season because:
- They have more than one source of income such as having two households;
- They run a business;
- They make a lot of money;
- They have more than one type of income such as wages from work, income from a side business, retirement income, or even income from investments;
- They have personal or business assets that they may have sold or given away during the year
So… what are these people doing? Better yet, what’s better:
tax expert or tax consultant? Let’s discuss…
Trusted Advisor
While most makers are trustworthy, they are mainly available during tax season (January to April). For those who work in retail tax franchises, they work part time and have limited access outside of their time preparing taxes. Tax consultants are usually available year round as tax preparation and consulting is their full time business. Another advantage of being available year-round is for you to consult a tax consultant regarding transactions that may cause you to pay too much or not enough tax.
In-depth knowledge of the Tax Code
It is usually the norm for consultants to have an in-depth and thorough knowledge of the tax code. Most of them have professional credentials such as Registered Agent (EA), Certified Public Accountant (CPA), or certifications obtained through accredited programs such as the National Tax Training School and other vocational institutions. Also, they usually gain years of experience either working with clients or through previous work related to tax preparation or consulting. Why is this important? This doesn’t sound like a tax geek and speaks in terms that are too difficult for anyone to understand. Absolutely not. Unlike creators (not all, but most), consultants rely on their knowledge of the code to offer strategic options to reduce your legal and fair tax bill. Also, it saves you time because they can often find the necessary references in the code to pick up a particular reduction or exception without much effort or research.
If you are looking for speed, convenience, and the lowest possible price, then go with an expert at one of the retail franchises or even complete your returns online yourself. However, if you are looking for a trusted advisor with a thorough understanding of the codes available throughout the year, then choose a tax consultant. You won’t regret it.