What Is a Tax Consultant, and What Do They Do?

tax consultant can help you minimize your tax liability, capitalize on tax deductions and manage your tax situation. With more expertise than standard tax preparers, tax consultants can help with tax planning, inheritance issues, charitable giving and other complex tax needs. Often, these advisors have training in tax law or accounting. Fees vary, depending on the scope of work and the skill and experience of the tax consultant. If you need further help with your taxes, investments or long-term financial plan, a financial advisor would be helpful.

What Does a Tax Consultant Do?

Tax consultants are professionals who specialize in tax law and financial-related counseling. They advise clients on income tax returns and a range of financial matters, including trust, estate and retirement taxes. They also must stay informed on the most recent tax requirements and law changes, both on the federal and state levels.

Tax consultants offer a variety of services to their clients. These can include:

  • Preparing your tax return
  • Looking for deductions to lower your tax burden
  • Minimizing your tax liability in retirement
  • Dealing with taxes on rental property income
  • Helping manage your capital gains taxes
  • Sorting through the tax implications of life events, like marriages, divorces, deaths and births

Not unlike individuals, businesses and their owners also need help with taxes. In fact, corporate tax law is often more intricate than the rules surrounding individual income. As a result, many tax consultants specialize in business tax services. This can involve minimizing a company’s tax liability, ensuring the company is taking advantage of all tax benefits and more.

Tax consultants usually work for financial consulting firms, public accounting firms or government agencies. On the other hand, some may operate completely independently. In many cases, tax consultant services are available online, though you can also access their services through an office. Clients range from individuals and families to organizations and corporations.

How Much Does a Tax Consultant Cost?

Tax consultant fees vary widely, as they’re based on several key factors. Location plays a major role, with prices peaking where the cost of living is highest. Another factor is the complexity and scope of your tax situation. In short, the more the tax consultant has to deal with, the more you’ll pay. Also, if your situation requires highly specialized knowledge about tax code, their fees will be commensurate with their qualifications.

Let’s say you only need a simple tax return prepared for you and your family. Based on 2019 data from the National Society of Accountants, the average tax return costs around $300 to prepare. If you expect to receive a sizable payment back from the federal or state government, then this is a small price to pay to ensure things are handled right.

If you decide to work with an online tax consultant, you’ll probably incur a fixed fee of anywhere from $25 to $1,200, according to Depending on the specifics of your situation, this may or may not be a worthwhile price.

Business owners may opt to take advantage of a customized plan from a tax consultant. Again, according to, fees for this could range as high as $2,000 a year. Of course, if you want to spend your time focusing on your company and not on taxes, this definitely could be worth it.

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