A tax consultant is a person who knows the finer nuances of financial laws and regulations and shares his in-depth knowledge of tax-paying with the tax payers for a fee so that they can fulfil their financial obligations with minimum risks. And tax consultancy business is a firm that specializes in providing these expert advices. According to David Justin Urbas, hiring a tax consultant reduces the chances of an audit scrutiny which might otherwise lead to heavy penalties.
The duties of a tax consultant does not follow any demarcation and can vary widely depending upon the type of firm the consultant is working for, his job ranking and even, his work experience along with recognition. The functions of a tax consultant are as follows:-
- Preparing tax returns– Tax consultants are most commonly involved in organizing and making the tax returns of the clients who have paid their due taxes. They also make their clients aware of any new changes in tax laws so that they can be in compliance with it. They also help to fill out the tax forms for those who are unfamiliar with the procedure. Since, the types of taxes the clients pay may vary significantly from each other, this is a very huge responsibility and is divided amongst the consultants. While, few look after the property taxes, others can be involved with commercial or incomes taxes.
- Analysing financial circumstances– A good tax consultant evaluate a client’s asset and advises in such a way so as to minimise the tax liability. David Justin Urbas is of the view that a consultant should also provide insight on legal matters of estates and trust funds and do the necessary needful.
- Explaining the implications of significant events– Tax consultants help people to resolve the tax implications of life events like births, deaths, marriages, divorces etc. Inheritance taxes and untimely deaths can sometimes lead to legal complications which can be explained clearly to the concerning client and dealt professionally by a consultant.
- Understanding the language of law– In legal complications, every tiniest detail matters and a change of one or two word can make a significant difference. Any tax expert is good at breaking down the complexity of legal information and translating it to the client in a simplified manner. A tax consultant should be extremely aware of all the codes and regulations and be willing to conduct research on them on behalf of the clients.
- Representing a client– If a client is already in a fix with the finance and tax authority and has consulted a tax expert for its solution, it becomes and obligatory duty of that consultant to represent his client in dealings with the concerned government bodies.
A good consultant should possess strong verbal and written skills, be a good listener, and have methodical mind-set with the ability to counter-argue which in turn help to resolve complex situations. David Justin Urbas believes the role of a tax consultant is of extreme importance and has the ability to impact the lives thousands of people around him.