Many high net worth individuals use a tax advisor to help them manage their wealth. So, what exactly is a tax advisor? And do you need one? First off, tax advisors work to help people reduce their taxes to the lowest possible amount. Many certified public accountants are also tax advisors. Typically, when an individual, company, corporation, or any other type of taxpayer has complicated deductions and/or investments they seek the help of a Tax Advisor in order to minimize their tax bill. Tax Advisors evaluate their clients’ situations, and then advise them how to lower their taxes.
Know the Tax Code
Tax advisors should be a certified public accountant or an accounting professional who has a sound understanding of the complex U.S. tax code. Not all tax advisors have the same level of experience, knowledge and skill. So if you’re looking for a qualified, trustworthy tax advisor make sure you do your research to hire the right one. But do you really need a tax advisor? The short is yes, if you’re high net worth individual. The difference between using a tax advisor or not can be costly. If you make large tax mistakes you could end up paying the IRS handsomely, with money that could’ve otherwise been yours.
Avoid Tax Pitfalls
For starters, as mentioned, tax advisors understand that complicated tax code. Not to mention, they keep up with the constant changes in the code from year to year. The tax code is full of all kinds of potential traps and pitfalls. If you aren’t aware of them, it could definitely cost you. A professional tax advisor will not only recognize these pitfalls, but he or she will know how you should navigate them.
More Than Just Tax Savings
Unquestionably, qualified tax advisors help you get the most out of your tax return. However, they can help you with other tax items, as well. Tax advisors also help corporations and individuals make the right choices in several other financial areas, including estate planning, retirement, business planning, and managing investments. Tax advisors can even help you deal with the tax and financial implications of major life events, such as buying a home, getting married or divorced, having a baby, or inheriting significant wealth.
Hire the Right Tax Advisor
As previously mentioned, choosing the right tax advisor is vital. If you choose a less-experienced or incompetent tax advisor you could end up paying for it. There are shady tax advisors out there, so you need to do your homework before making a choice. Experience should be a top priority in the decision-making process. Choosing an advisor that also serves as a certified financial planner is a good idea. They can give you a wider look and a more balanced approach to help guide you throughout your entire financial situation.
GROCO: Experienced Tax Advisors
If you’re looking for a qualified, experienced and trusted tax advisor, then contact GROCO. We are certified public accountants with a deep knowledge of the tax code. We offer sound tax advice and financial planning that will keep your taxes down and protect your wealth.