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When To Hire A Tax Consultant

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Not everyone's situation requires the expertise of a tax consultant, but they can provide helpful guidance in certain situations. If you're having trouble with taxes, here are times when it's appropriate to hire a tax consultant.

You're Being Audited

If you ever go through an audit, a tax consultant who specializes in audits will be able to take you through the process. They'll know what documents you should prepare, and they can advise you on how to address any questions or issues that arise during the audit.

A tax consultant may be able to help in a variety of different audits, including:

  • IRS and state audits of personal tax returns
  • IRS audits of business tax returns
  • Workers compensation audits of wages paid
  • Third-party audits of nonprofits' finances

Any consultant who's familiar with tax audits should be able to guide you through each of these, as tax documents are frequently used to verify what is made during audits.

You Have a Complex Situation

Straightforward returns can be processed by a new tax professional, or even yourself in some cases. A more complex return may require the expertise of a tax consultant in order to make sure the return is completed correctly, however.

You may have a more complex tax situation if you own one or more businesses, if you have bought or sold stocks, or if you have rental properties. Dividend income, foreign investments, trusts, and estate disbursements can also complicate tax returns and require the expertise of a consultant.

You're Starting a New Business

If you're starting a new business, a tax consultant can help you set up the business in the most tax-efficient way possible. They can advise you on:

  • Whether to set up a sole proprietorship, limited liability corporation, S corporation, C corporation, or B Corporation
  • What expenses qualify as business write-offs, and what write-off method to use for the maximum allowed deductions
  • How to make quarterly estimated income tax, payroll tax, sales tax, and other regularly required tax payments

Depending on your business's revenues, expenses, and situation, properly navigating these issues could result in a significant increase to the business's bottom line.

You Have Any Question

Should you ever have a question about your tax return, tax bill, or general situation with regard to taxes, a tax consultant can answer the question for you. They can provide a more definitive answer than researching the issue on your own is likely to yield.

For more information, contact a tax consultant near you.