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What is a Tax Consultant

What is a Tax Consultant?

Maybe you have put a full stop to contemplating further your questions like ‘What is a tax consultant’ or ‘Is tax consultant a good career?’ because the perplexed standards of society or peer influence might have made your career choices a bit trembly because it is a common notion that tax experts are only for the elites. Little did you know that even an average citizen of your country can avail of the services of tax advisors!

A Comprehensive Guide: What is a Tax Consultant?

Tax consultants are specialists who are responsible for a great many things such as guiding you or the representatives of your business through reducing tax liabilities, local and federal tax codes, and how to comply with the standards of the Internal Revenue Services (IRS) while simultaneously minimizing the load of taxes from your shoulders.

How much do Tax Consultants Make?

The fees that tax consultants charge vary concerning various factors. The fees charged depend on the geographic location where the costs of living are the highest. The scope and complexity of your tax situation are other considerable factors. To cut short, the greater the degree of coarseness in the financial situations of your firm, the greater fees charged by tax advising experts.

After ‘What is a tax consultant?’, one of the major concerns of students who are about to or are freshly graduates is ‘How much do tax consultants make?’. The amount a tax resolution specialist makes depends on the number of years of experience and the level of credentials. The annual income of tax consultants ranges from $61,000 to $75,000. If the tax consultant is a certified public accountant (CPA), the average salary range is $175 to $450 per hour.

If you’re a beginner and working as an intern, it might be possible that this training would be either paid or unpaid but winning and mastering this practice session is above all. Depending on your work performance, you may also get noticed by large corporations and most probably it will be that dream gateway to many opportunities knocking right at your doorstep.

Services Provided by a Tax Advisor

The services provided by tax advisors, also referred to as tax consultants, extend beyond tax preparation. Besides minimizing tax liabilities, they answer your queries related to taxation and provide valuable solutions to your problems. The creation and organization of tax plans for the upcoming years are necessary for the financial integrity of your firm and this is also included in the responsibilities of tax advisors along with other services such as:


  • Increase tax-related contributions
  • Reduce previously assessed penalties
  • Assist with taking advantage of tax credits and deductions
  • Optimizing the time of income or deductions at the year-end
  • Determine the best tax strategy by analyzing different scenarios
  • Assisting the payment arrangements such as installment agreements
  • Researching taxation laws to ease the burden of paying taxes
  • Examine the tax returns of the previous year to determine the need to make amendments

Why Should You Hire a Tax Consultant?

Now that you know ‘What is a tax consultant?’, it is time to dive into the detailed investigation that is necessary before hiring a tax consultant so that he/she can fit your taxation requirements and issues. You can start searching by contacting your relatives, friends, neighbors, or acquaintances. Their experiences will allow them to pour their suggestions regarding the most reliable tax consultant.

In case the financial circumstances of your organization are intricate or you owe a large sum to the IRS, a tax consultant will benefit you. Since tax laws are subject to change every year, tax advisors ensure the provision of appropriate answers and solutions to your queries.

What are Tax Liens Services?

A federal tax liens services is the legal claim of the government filed to oppose your property when your tax debt is neglected or unpaid. The lien safeguards the interests of the government in all your property, including real estate, personal properties and financial assets.

The IRS puts your balance due on the books (assesses your liability) and sends you a bill that explains how much you owe (Notice and Demand for Payment) and you refuse or neglect to pay the debt in time.

The IRS releases all the charges on your properties against you within a month if and only if you make full payments to your debts – this is the best and easiest way to get rid of taxation liens.

Why hire a tax consultant?

Tax consultants offer invaluable services that allow clients to reduce tax liabilities while complying with state and federal tax laws. Due to their vital role, there may be various times when hiring one could prove helpful.

“Consulting with an experienced tax advisor will bring peace of mind; type tax consultant near me and L&Y Tax Advisors suggests as an easy rule of thumb:

Here are a few situations when hiring a tax consultant may come in handy:


You own a business

Your finances have become more complicated since starting a business, and managing its tax implications on top of other financial aspects can become burdensome and complex, making tax consulting invaluable in mitigating both business and individual liabilities.

You have a high income

Once your income increases beyond a certain threshold, more income taxes must be paid; once this threshold has been crossed, it might be wiser to consult a tax consultant to reduce payments further down. 

You plan to itemize your deductions

Your plans involve itemizing deductions. Most taxpayers take the standard deduction, significantly since Congress raised it, but if your plans involve itemization, which usually means having more complex tax needs, then an experienced tax consultant is invaluable in aiding their preparation of an itemized deductions plan.

You receive a large inheritance

Your inheritance could bring positive tax implications; consulting a tax adviser could assist in devising the most tax-advantageous way of handling this influx of money.

You have a variety of income streams

Your income comes in many forms, and filing your taxes should be straightforward if your wages come solely through W-2s. But if your earnings come through 1099 contracts or shares in companies, hiring an outside tax consultant might be worthwhile.

You want to minimize your taxes

Are You Wanting to Minimize Taxes? All three situations discussed have one thing in common – decreasing tax liabilities. A tax consultant is an invaluable ally when trying to pay less in taxes while remaining compliant with state and federal regulations.


To summarize ‘What is a tax consultant?’, individuals who specialize in tax laws and counseling about financial matters are tax consultants or advisors. As the name indicates, they advise their clients on income tax returns and a range of financial matters such as real estate issues and retirement taxes. A set of soft skills such as being able to communicate effectively, critical analysis, attention to detail, and mathematical abilities are necessary to be the go-to person of large businesses and organizations.