What Does a Tax Advisor Do?

A tax advisor is a person who has specialized knowledge and expertise in tax accounting and tax law. A tax advisor is often retained in complex financial cases to help reduce tax liability and comply with the law.

An apex tax advisors, LLC can include tax attorneys, Certified Public Accounts, licensed agents, or some other financial experts. Tax advisors are also known as tax consultants.

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Tax advisors can either work for an agency or be self-employed. They are responsible for finding legal ways to reduce tax liabilities, estimating taxes on various investment portfolios, and determining the appropriate deductions or credits. 

They can also prepare tax returns and file them for their clients. Tax advisors are a good choice for taxpayers who have experienced a significant life event such as the death of a spouse or partner, divorce, childbirth, adoption, purchase of a new house, job loss, inheritance, or any other major life event.

The taxpaying entity is a person, business, trust, or company with complex financial circumstances (example: complicated investments and deductions). It seeks the expertise of a tax advisor to reduce the tax due to the taxing authorities.

Tax advisors can offer advice and services that are tailored to the individual taxpayer's needs. A person who is planning to retire will get different advice than someone who is trying to start a business. A real estate investor will likely have different tax requirements than a commodities trader.

A tax advisor may not be able to help a company that is looking to acquire or combine another business. This could lead to a conflict between the professional relationship of the executor and the trust seeking to minimize taxes.