A tax advisor or tax consultant is an individual who provides their clients guidance to minimize tax liability while being compliant with tax laws. Tax advisors also act as tax preparers because they give their clients tax returns. They are able to explain tax laws and advise their clients on strategies in a way that the clients would easily comprehend. These experts have undergone advanced training with regard to tax laws.
A tax advisor can be a tax attorney, a Certified Public Accountant, or even a financial advisor. They usually work in private law firms and accounting offices. People who have key roles in tax-collecting bodies such as the Internal Revenue Service can eventually work as tax advisors because of their familiarity with tax laws. There is initially no formal certification for the job title. However, accreditation and certification for tax consultancy are starting to become available.
Qualified individuals usually assume the role of tax consultants usually after working for a number of years in a tax-related job. However, it is still considered the best move to take postgraduate studies such as a taxation program, masteral studies in taxation and finance, or a Juris Doctor specializing in taxation. Such educational qualifications would provide sufficient knowledge to handle clients with different taxation backgrounds and needs.
Aside from knowing the latest tax laws in their country of practice, tax advisors are expected to be knowledgeable on estate planning. Whether their client is an individual or a company, tax consultants should help them comply with tax laws while giving them the best possible means of minimizing taxation liabilities.