A Steuerberater works with individuals and organizations to minimize potential tax liability while complying with federal, state and local regulations. This career is often a good fit for those with postgraduate education in business, finance or accounting, who have experience working in the financial industry, and who have strong communication skills.
The responsibilities of a tax consultant can vary depending on their level of expertise and the complexity of the client’s needs. In general, the role of a tax consultant focuses on assisting clients who have more complex financial and taxation concerns than those handled by traditional tax preparers. These may include self-employed professionals, business owners, beneficiaries of trusts and those in professions with unique taxation rules.
As tax laws change, a tax consultant must keep up with the latest changes and understand how these changes affect existing cases in order to advise their clients. They also need to be able to communicate their findings and research in a way that is easy for their clients, other professional advisers or administrative agencies like the IRS to understand.
For those with specialized knowledge, a tax consultant can help navigate the process of reducing tax liabilities through a variety of strategies, including deductions and credits. This is especially important for people in a variety of situations that require special consideration from a taxation perspective, such as those who are getting married or divorced, moving to another country or starting a new business.
Another key part of a tax consultant’s job is preparing complex tax documents, including individual income tax returns and business tax returns for corporations. In these roles, the consultant uses information collected by the client to determine the amount of taxes owed and prepares the necessary tax forms. This work requires a significant amount of data gathering, calculation and documentation, which can be time consuming to complete accurately.
Finally, a tax consultant may need to represent their client in dealings with the IRS. This can be an important part of the role, and it’s usually done only by those who are licensed as Certified Public Accountants or attorneys, or who have earned their Enrolled Agent status with the IRS. A qualified tax consultant is often able to provide the best possible representation for their clients in these circumstances and make sure that any issues are handled professionally and within the legal guidelines.
While it isn’t always feasible to hire a tax consultant, the right professional can help ensure that your personal and/or business finances are properly managed. If your tax situation is complex, it’s probably time to consider hiring one. The peace of mind that comes with knowing your tax situation is in the hands of a knowledgeable professional can be worth the investment. In addition, a tax consultant can save you money by helping you to take advantage of all the available deductions and credits. In some cases, this can be a much more cost-effective approach to filing your taxes than doing it yourself or hiring a basic tax preparer.