What is a Tax Consultant?
There’s a difference between a tax consultant, an accountant, and a financial adviser whereby a tax consultants is handling your finances. Even though, an accountant and a financial adviser can become a certified tax consultant, but taxation is not always their focus part. On the other hand, tax consultants are more professionals who specialize in tax law and financial-related counseling. They are providing useful tax-related advice; tax consultants are also responsible for having up to date and keep you informed about the most recent tax requirements, either on the federal or state levels.
If you are someone who values each penny, hiring a tax consultant might be a very effective decision. Hiring a tax consultant is a great advantage for ensuring that you are understands all the tax deductions which you are entitled to claim.
When you hire a tax consultant, they will provide you advice either over the phone or in-person about your filing options. Some other aspects they will cover are including the followings:
- How to reduce your tax liability legally?
- Computing taxes based on your investments
- Preparing and completing tax returns
- Finding the right deductions, adjustments, and credits base on your situation
Not everyone needs help from a consultant when it comes to filing their taxes. However, those in complex situations, definitely benefit to working with a professional.
How to Know You Need a Tax Consultant?
If any of the following situations apply to you, this might be a sign that you need a consultant to help you to file your tax correctly and get the most money back on your tax return.
1. Your Marital Status Has Changed
Have you gotten married or divorced in the last year? If so, your tax filing may be affected.
- Newly married couples
A tax consultant can help you decide whether to file your taxes together or separate. It is helpful to get a tax consultant’s opinion of what will be most beneficial way since every couple’s situation is different.
- Recently Divorced Couples
A consultant can help you determine whether it is the best way to file separate or together. Generally, it’s recommended that you file separately so that one person can’t be pursued when the other has any unpaid taxes. They can also help ensure that alimony has either been paid or received properly.
2. You Have Recently Started a New Business
A common mistake of new business owners is waiting to hire a tax professional. How you file your taxes in the first year can impact your future tax filings. Even if you’re the only proprietor, it is important to start off right from the beginning.
3. You Have Inherited Money
No matter how big or small the amount you’ve inherited, it’s best to consult with a professional before filing your taxes. There is no inherent tax in Malaysia now, however it is important that the executors shall file appropriate tax return to declare deceased person’s estate. A tax consultant will help you sort through the details and make sure you inherent the estate without harassment
4. You Find a Mistake on a Previous Return
Have you found a mistake on a previous tax return in the past three years? You can work with a tax constant to file an amended return. A tax consultant can help you to minimize any damage that may have been caused. Moreover, it does also can provide you with a peace mind that with knowing your return will be handled properly in coming year.
5. Filling Your Own Taxes Can Be Time Consuming
Filling your own taxes can be time-consuming. A tax consultant will be able to work quickly and efficiently. They will be able to assist you to reduce your stress by making sure that your taxes are done right.
If you are interested in hiring a tax consultant, you should hire a professional from a company like L & Co PLT. They will also help you to figure out things such as sales tax rules and avoid common issues like accidental tax evasion.