Get Paid As A Tax Consultant In A Multinational Firm

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The government receives a lot of tax from companies and individuals every year. Taxation is a very complex financial area that is not easily understood by most individuals. This is why there is presently a great demand for tax consultants. Consultants also provide the needed knowledge about tax laws and related matters when a company is dealing with partners in other countries. If you have the right qualifications, you can get paid as a tax consultant in a multinational firm.

Starting Your Tax Consultancy Business
Duties of a Tax Consultant
What Are Some Basic Tax Consultant Qualifications?
How Much Does it Cost to See a Tax Consultant?
Is Tax Consultant a Good Career?
How Are Tax Consultants Employed?
What is a Tax Consultant Salary?
How Much Does it Cost to Hire a Tax Consultant?
What Does a Tax Consultant do at Deloitte?
What Does a Property Tax Consultant do?
Is a Tax Consultant an Accountant?
How do I Find a Good Tax Consultant?
Do You Need a Degree to be a Tax Consultant?
How do I Become a Tax Consultant?
What is The Meaning of Tax Consultant?
How do I Become a Property Tax Consultant in Texas?
How Much Tax do You Pay as a Consultant?

Starting Your Tax Consultancy Business

At the start of this business, you will need to have a suitable office. When your office is ready, start reaching out to businesses that are in your local area. This is a good way to gain experience and professional exposure in the industry.

Read Also: Making Money The Easy Way

As you grow and become more experienced, you can start marketing your services to larger companies that have more complex activities. Your ultimate goal is to build a tax consultancy where you will have a number of tax consultants working for you. Here is more.

1. Obtain your PTIN

The IRS makes it easy to apply online for a PTIN. Tax preparers must renew their PTIN annually. Note that PTINs are unique to the individual. So, if you grow your business and hire other people to prepare tax returns for clients, they must obtain their own PTINs.

2. Get the Necessary Education and Training

Consider the information and options that I shared earlier in this article within the “Do You Need Training to be a Professional Tax Preparer?” section.

3. Decide on Your Business Name

Think about what you would like to call your business. Then, check to make sure the name hasn’t already been taken by another company that provides the same or similar services in your state. You can do a free corporate name search through the CorpNet website.

If your business name is available, but you’re not ready to launch your business yet, we can order a business name reservation for you. Note that most states will hold the name for between 30 and 90 days.

4. Register Your New Business in Your State

Think carefully about the business entity type you choose for your tax preparation operation. Selecting to form an LLC or incorporate your business requires filing registration paperwork with the state. And opting to be taxed as an S Corporation involves filing a special tax election form with the IRS (possibly with the state, too).

Establishing those business structures comes with some costs and paperwork, but they offer some advantages over operating as a sole proprietorship or general partnership.

If a tax preparer operates as an LLC or corporation, it will need to designate a Registered Agent in the state(s) where it conducts business. As a registered agent in all 50 states, CorpNet can fulfill that requirement for you no matter where your home business resides in the United States.

Note that although sole proprietorships and general partnerships (in most states) do not have to register their businesses, they may have to file a DBA (“doing business as”). A DBA (also known as fictitious name) must be filed if the business owner wishes to use a name other than one that contains their first and last names in its title.

For example, Lara Gonzalez would need to file a DBA if she wants to run her tax preparation business under the name “G-Force Tax Preparation Services” instead of “Lara Gonzalez Tax Preparation Services.”

5. Obtain an EIN

Often, banks will not open a business bank account unless a business owner or company has an Employer Identification Number (EIN). Also, the IRS requires businesses that hire employees or that operate as a corporation or partnership to obtain an EIN. It’s simple to order EINs online, and they’re free from the IRS.

CorpNet makes the process even easier by handling the EIN online application on behalf of business owners.

6. Open a Business Bank Account

Doing this is essential for keeping your business and personal financial and tax records separate. And, if a business is structured as an LLC or corporation (which are separate legal entities from their owners), they must have a dedicated business bank account. Otherwise, they risk “piercing the corporate veil” that protects their personal assets from the debts of the business.

7. Apply for Local Business Licenses and Permits

Some locations do require licenses and registrations that non-credentialed tax preparers must have to perform their work in states that have set requirements for tax professionals. Tax preparers must research what they need to do.

To save business owners valuable time, CorpNet offers Business License Service Packages. We can identify the required licenses and permits, and we can prepare and file the application forms to receive the necessary licenses.

8. Obtain an Electronic Filing Identification Number (EFIN)

Tax preparers who will file 11 or more tax returns, must submit them electronically. This requires becoming an Authorized e-file Provider and obtaining an Electronic Filing Identification Number (EFIN).

Three steps are involved in the process:

Create an IRS e-services account.
Submit an application.
Pass a suitability check.

After the IRS approves a tax preparation firm as an Authorized e-file Provider, it sends an acceptance letter with the EFIN it has assigned to the company.

Note that the IRS says the process can take up to 45 days. Also, some states may require that a tax preparer complete a separate application for state income tax return e-Filings.

9. Acquire Tax Preparation Software

Which software solution will be ideal for an in-home tax preparation business? That will depend on the types of tax returns the tax preparer will handle, the volume of returns, and budget constraints. Price points and the approaches to pricing vary, with most companies offering several options.

Some of the pricing methodologies used by software providers include:

One-time fee plus a fee per tax return
Annual fee for unlimited tax returns
Annual fee for a certain number of tax returns
No annual fee and a volume-based fee per tax return

When choosing a professional tax preparation software solution, consider:

The types of clients you will serve (individuals, businesses, only certain business entity types?)
The volume of clients you expect to serve
Which forms you’ll be using
Which states you’ll do filings in

10. Take Measures to Protect Customer Data

Tax preparers handle sensitive information. Your customers will expect you to have measures in place to protect that data. Moreover, the IRS expects professional tax preparers to have a written security plan to protect their clients’ data. According to the IRS, “In fact, the law requires them to make this plan. Creating a data security plan is one part of the new Taxes-Security-Together Checklist.”

11. Purchase Business Insurance

Business owners can limit their personal liability for the debts of their business by forming an LLC or incorporating their company. Another way to minimize liability risks is through obtaining insurance policies that will protect business and personal assets.

No matter how skilled or experienced a tax preparer is, the potential for errors exists. A tax preparer professional liability insurance policy can help protect them if clients would bring suit against them for errors, omissions, or honest mistakes.

Also, a general liability insurance policy can offer peace of mind. That type of policy protects tax preparers who go to clients’ homes for appointments against claims of property damage. It also protects tax preparers who bring clients to their homes against legal action if clients get injured on the tax preparer’s property. Even though slips, falls, and other accidents happen rarely, they do occur!

Speak with a trusted insurance agent who can help you assess your risks and identify the protection you’ll need.

12. Market Your New Business

No business should rely on the “build it and they will come” approach to acquiring customers. This applies to tax preparation businesses from home, too. Consider these marketing and advertising assets and tactics for spreading the word about your business:

Obtain business cards – You can hand them out virtually wherever you go—social events, church, at your kids’ sports events, etc.
Create a professional website – It wouldn’t have to be big or complex. A simple one-page site can establish an online presence and give potential customers a way to learn more about your capabilities.
Set up social media business accounts – Social media accounts give potential customers another way to find and connect with you online. LinkedIn, being a professional-focused platform, may be especially beneficial. A Facebook page (not a personal profile) will also be incredibly helpful.
Set up Google My Business – Google My Business feeds both Google local search and Google map results, so it is incredibly important for local searches.
Join networking group – Active memberships in the local Chamber of Commerce, Rotary Club, etc. will help get the word out about you and your new business.

13. Establish a Means for Maintaining Business Compliance

Tax preparation businesses must follow through with some ongoing compliance obligations. The exact responsibilities will depend on the business structure and business location.

Some of the possible requirements include:

Filing the business’s own tax returns and paying taxes
Renewing the PTIN
Renewing a DBA
Renewing licenses and permits
Maintaining a registered agent
Holding member or shareholder meetings
Recording company changes via Articles of Amendment
Filing annual reports

Fines, penalties, and even suspension or administrative dissolution (forced closing of the business by the state) could happen if a company ignores its compliance duties. CorpNet’s free Compliance Portal provides a way to track business compliance requirements. Also, ask your attorney and accountant to verify what you must do and when deadlines occur.

Duties of a Tax Consultant

It is vital to understand your responsibilities as a tax consultant. You must be knowledgeable about the prevailing tax laws and should be able to provide your clients with correct information about the status of their documents.

Your clients also need to be informed about the best practices when they are preparing or submitting their documents to the IRS. Tax consultants are responsible for evaluating the assumptions that are made in tax calculations so as to determine the relevant facts that will enable them to arrive at lawful conclusions.

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.

What Are Some Basic Tax Consultant Qualifications?

Tax consultancy is a profession that requires certain professional qualifications if you want to be successful. Basically, you will need a college degree in a relevant discipline such as finance or accounting.

Additionally, certifications from a chartered body will also be necessary. Most importantly, it is vital to acquire a lot of practical experience. Practical experience will enable you to have a clear understanding of your responsibilities and duties in this profession.

Apart from acquiring basic qualifications, you also have to continue to update your knowledge. Tax rules and government regulations change from time to time and these rules have a lot of effect on businesses and individuals.

The information provided by your clients is sensitive and has to be treated confidentially. It is also vital to have the capacity to work under different situations and be able to communicate with different types of clients in various industries.

It is possible to get paid as a tax consultant in a multinational firm if you are ready to do your homework. This profession requires a high level of competence as errors are not tolerated in tax matters. You will always have a lot of work because an increasing number of companies and individuals need this type of service.

Tax consultants are considered as valuable assets to multinational companies. This is why they are paid salaries that are very high and are also given attractive fringe benefits.

How Much Does it Cost to See a Tax Consultant?

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 Business.com. 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 Business.com, 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.

Is Tax Consultant a Good Career?

Tax consulting helps people make informed decisions about tax-related issues. Tax consultants use their expertise to help clients comply with tax regulations and take advantage of adjustments, deductions, and credits that let them keep more of their money.

The complex U.S. tax code proves confusing to many people. A lucrative, stable, and in-demand career, tax consultants earn an average of $60,235 annually, according to PayScale. PayScale also finds that tax consultants report a high level of job satisfaction.

How Are Tax Consultants Employed?

Public Accounting Firms: Many tax consultants work for public accounting firms, which provide accounting services to other organizations. These consultants provide accounting, auditing, and tax services to clients.
Local, State, and Federal Government: Government agencies at the local, state, and federal level all employ tax consultants. The IRS hires tax consultants to conduct reviews of policies, evaluate taxpayer education programs, and provide technical assistance to staff.
Specialty Tax Consulting Firms: Some tax consulting firms focus on specialized areas of tax law, including international tax law, income tax law, and payroll tax law. Tax consultants must possess expert knowledge to work at these specialty firms.
Corporate Tax Offices: U.S. and international corporations often feature their own corporate tax offices, which employ tax consultants. Tax professionals who work in these settings often perform tax planning and research on behalf of their company.
Law Organizations: Tax consultants may work at law organizations with their own tax practices. Tax situations for legal firms can become very complex, necessitating specialized help.

What is a Tax Consultant Salary?

The Bureau of Labor Statistics (BLS) collects salary data throughout the country. This data combines tax consultants and tax preparers. According to the BLS, tax consultants earned a median salary of $38,730 in 2017. The profession maintains a mean salary of $47,090 annually.

Salary by Experience

An individual’s relevant experience can impact salary. For example, tax consultants with 5-9 years of experience earn an average of $71,000 per year, according to PayScale. The chart below shows the average wages for tax consultants with different experience levels.

EXPERIENCE	SALARY
Entry Level (0-12 Months)	$58,000
Early Career (1-4 Years)	$59,000
Mid Career (5-9 Years)	$71,000
Experienced (10-19 Years)	$80,000

Salary by Degree

Higher education can change the average tax consultant salary. Several types of degrees can help candidates work as tax consultants, but accounting degrees often offer the most direct route. The chart below highlights the salary ranges for tax consultants with different levels of accounting degrees.

Accounting Degree Salaries

BACHELOR’S DEGREE

Median Salary: $69,000

MASTER’S DEGREE

Median Salary: $91,000

Career Path Salaries

Tax consultants who complete several successful years in their roles often move into other positions. They may earn their certified public accountant credentials, manage teams of tax consultants, or analyze tax data. See below for some common next steps for tax consultants and the average salaries for these positions.

POTENTIAL NEXT STEP	SALARY
Tax Manager	$96,666
Certified Public Accountant	$65,194
Tax Analyst	$58,081

How Much Does it Cost to Hire a Tax Consultant?

The cost of hiring a professional accountant to do your taxes varies based on your situation and what tax forms you are required to file. The average cost of hiring a certified public accountant (CPA) to prepare and submit a Form 1040 and state return with no itemized deductions is $176, while the average fee for an itemized Form 1040 and a state tax return is $273.

If you are self-employed and need to hire a CPA to prepare an itemized Form 1040 with a Schedule C and a state tax return form, the average fee increases to $457. It is important to keep in mind that these are the average fees; the cost will differ if parts of your tax filings are under special cases and take longer for the accountant to complete. In these circumstances, accountants may charge you more in consultation fees and overtime work.

What Does a Tax Consultant do at Deloitte?

Deloitte Tax LLP provides the opportunity to gain hands-on experience with some of the world’s most complex consulting and compliance issues. No two days are the same as you help clients navigate the tax implication for various transactions a company undertakes.

Tax consultants have the perspective to help companies understand national, state and local, and international tax structures and align the tax function with business objectives.

Managing taxes is a critical part of an effective business strategy. As a tax consultant, you will work directly with clients, building a relationship as a trusted tax specialist and advisor — the “go-to” tax professional.

You will collaborate daily as part of high-performing teams, identifying potential approaches to address complex tax issues through research, use of cutting-edge technology, and consultation with other team members.

Daily tasks may include researching tax regulations, understanding the applicable tax implications for specific clients, and making recommendations based on your findings.

What Does a Property Tax Consultant do?

There are different types of property tax consultants. Valuation consultants are experienced appraisers who provide expert value opinions on company property, whereas strategy consultants assist with tax reduction strategies.

Property tax consultants focus on assisting with compliance work. They compile data, prepare filings for the proper jurisdictions, handle negotiations and appeals, and make payments on behalf of their clients.

Because many companies lack the internal expertise to perform property tax valuation assessments on their own, they turn to property tax valuation experts for fair and accurate assessments, as well as strategic recommendations on how to present findings to tax assessors.

What does a valuation consultant deliver?

Independent Appraisals

Valuation consultants provide a third-party opinion of value on taxable business property. They follow guidelines to ensure their appraisals are fair and compliant with local tax requirements. Valuation consultants use financial data, financial modeling, and industry trend information to support their conclusions.

Strategic Communication

Another key benefit to working with a valuation consultant is their in depth knowledge of valuation principles and experience in communicating with assessors. Consultants have experience working with tax assessors and use this knowledge to help clients with how to best present their position and discuss or negotiate with taxing jurisdictions.

Localized Expertise

Many companies are spread out across multiple states or taxing jurisdictions within a state. Property tax is very much local, and rules change in every state. Companies rely on consultants to help them develop a custom property tax strategy that meets their specific needs based on their structure and geographic location.

Industry Knowledge

Consultants understand different industries broadly. Not only are they knowledgeable about property taxes, but also often specialize in certain industries and understand the nuances that impact them. As a result, they have a big-picture view of what’s happening in the industry and within a particular state’s legislation.

A consultant can also work with experts at your company to identify nuances in asset valuation, considering factors like the impact of technological changes or other issues specific to your industry that may make your assets worth less economically and have not been captured by the tax assessor.

Litigation Support

Litigation support and testimony is another important aspect of valuation consulting. Once a consultant completes a valuation of a business’s assets, they sometimes have to present and defend that opinion in court.

They are skilled at supporting their findings with company data and presenting them in a way that’s accepted by tax assessors and in legal proceedings. When possible, a property tax consultant can also try to negotiate with assessors to reach a settlement on taxes owed.

Is a Tax Consultant an Accountant?

An accountant and a tax advisor both serve specific financial requirements and they are certainly not the same. You need to choose one of them based on your financial requirements. Each of them has different roles to play to ensure efficient personal and corporate financial management. In order to make the selection, you must know the basic differences between them in their area of work.

What role does an accountant play?

The role of an accountant is considered one of the most diverse roles in the finance industry. They should have the ability to give suggestions on various topics in this field and stay updated about the same. There are different types of specialist accountants and their roles are generally associated with the following

Giving advice to companies regarding the accounting process
Making profit and loss statement for a company
Guiding companies in producing company budget and cost-saving measures
Setting up an accounting process for new companies
Analyzing business performance and budget etc
Tax preparation service in Mississauga or tax preparation in Etobicoke

Accountants hold the ability to perform tasks ranging from daily bookkeeping services to acting as virtual finance directors for a company. They need to show their skills and efficiency in broad and common areas of tax advice but it is counted as one of the areas that they must cover. So it is quite evident that their knowledge of tax can never be able to beat the in-depth knowledge of a tax specialist.

What role does a tax advisor play?

Tax specialists usually take their first step in their career as accountants but eventually they move forward to develop specialized skills in taxation, gaining professional tax qualification. They go through special training in the field of personal business and corporate taxation along with a thorough knowledge of VAT on both domestic and overseas transactions.

This level of specialization particularly suits those who are looking for more complex tax advice for personal or more complicated business structures. Tax laws cover a huge and complex area and it is almost impossible for an accountant to have such an in-depth knowledge of tax.

How do I Find a Good Tax Consultant?

A full 80% of people who used tax preparers never asked about the preparer’s credentials, according to the survey, and about 75% never asked if the preparer would represent them in a tax audit. That’s amazing, considering that hiring a tax preparer or tax advisor means sharing details about everything from your income to your bank accounts, your marriage, your kids — and your Social Security number.

So if you’re searching for help, here are seven tips on how to find the best tax preparer or tax advisor for you.

1. Ask for a Preparer Tax Identification Number (PTIN)

The IRS requires anyone who prepares or assists in preparing federal tax returns for compensation to have a PTIN. Note the phrase “for compensation” — volunteer tax preparers don’t need PTINs. Make sure your income tax preparer puts his or her PTIN number on your return — the IRS requires that, too.

2. Require a CPA, law license or Enrolled Agent designation

A PTIN is relatively easy to get, so go a step further and get a credentialed preparer — someone who’s also a certified public accountant (CPA), licensed attorney, enrolled agent (EA) or who has completed the IRS’s Annual Filing Season program.

The Accredited Business Accountant/Advisor and Accredited Tax Preparer are examples of programs that help preparers fulfill the Annual Filing Season Program requirement. These credentials all require varying amounts of study, exams and ongoing education.

How do you find the best tax preparer near you with the credentials you want? One way is to search the IRS’s directory. It includes preparers with PTINs and IRS-recognized professional credentials. Volunteer preparers and preparers with just PTINs won’t be in the database.

3. Look for friends in high places

Membership in a professional organization such as the National Association of Tax Professionals, the National Association of Enrolled Agents, the American Institute of Certified Public Accountants, or the American Academy of Attorney CPAs is always a good thing to have in a tax advisor, as most have codes of ethics, professional conduct requirements and various certification programs.

4. Compare fees

How much do tax preparers charge? The average fee for preparing a Form 1040 is $203, and tax preparers who don’t use a flat rate typically charge $138 per hour, according to the National Society of Tax Professionals.

Often, tax preparers either charge a minimum fee plus cost based on the complexity of your return (that minimum fee ranges from $160 to $172 on average), or they charge a set fee for each form and schedule needed in your return (filing a Schedule C might cost an extra $84 on average, for example). If you come across a tax preparer whose fee is based on the size of your refund or who says he or she can get you a bigger refund than the next guy, that’s a red flag.

5. Reconsider tax advisors who don’t e-file

The IRS requires any paid preparer who does more than 10 returns for clients to file electronically via the IRS’s e-file system. If your tax preparer doesn’t offer e-file, it may be a sign the person isn’t doing as much tax prep as you thought.

6. Confirm they’ll sign on the dotted line

The law requires paid preparers to sign their clients’ returns and provide their PTINs. Never sign a blank tax return — the preparer could put anything on the return, including their own bank account number so they can steal your refund.

7. Check if they’d have your back

Enrolled agents, CPAs and attorneys with PTINs can represent you in front of the IRS on audits, payments and collection issues, and appeals. Preparers who just have PTINs can’t — even if they prepared your return. Preparers who complete the Annual Filing Season Program can represent clients only in limited circumstances.

Availability is also crucial. Even after the filing season is over and your tax return is history, the best tax preparers will take your call, respond to your email, or welcome you for a visit.

Do You Need a Degree to be a Tax Consultant?

Tax consulting does not require a specific degree or level of formal education. However, earning a degree in accounting, taxation, or a related field can improve your chances of getting a job. Many employers prefer to hire candidates with a bachelor’s degree. Credentialing requirements vary depending on the type of work. Here are a few common steps toward a tax consultant career:

Earn a Bachelor’s Degree: Earning a bachelor’s degree in accounting, taxation, or a related field typically takes four years studying full time. Some online programs offer accelerated options that let students graduate more quickly.

Most CPA programs include additional coursework to meet state requirements and typically take five years to complete. Tax professionals can also consider earning a master’s degree to make their resumes more competitive.

Get Credentials: Not all tax consultants need to earn credentials. However, anyone who prepares a tax return for clients must get a Preparer Tax Identification Number (PTIN) from the IRS. Most credentials take a few months to receive once the applicant meets all requirements. Make sure to consider processing when estimating how long it will take to receive your credential.

Tax professionals who work as CPAs or enrolled agents (EA) must earn specific credentials. CPAs need a license from their state boards of accountancy, which requires passing the CPA exam. EAs must register with the IRS and pass a three-part special enrollment exam and a background check.

Land an Entry-Level Job: The time it takes to receive your first job offer in tax consulting varies. Factors that can influence how long it takes include the number of available jobs in your area, your networking connections, and your qualifications compared to those of other candidates. In some cases, it might take several months before you start working your first job as a tax consultant.

Enroll in Continuing Education Classes: CPAs and EAs both need to complete continuing education credits to maintain their credentials. The number of required continuing education credits for CPAs varies by state.

EAs must complete 72 continuing education hours every three years. Even tax professionals who work in positions that do not require continuing education should take advantage of opportunities to learn new skills and stay current on new developments in the field.

How do I Become a Tax Consultant?

Here are six steps for starting a career as a tax consultant:

1. Research the industry and career

The first step to becoming a tax consultant is to find out as much information as possible about the career and industry. Read books on navigating tax law and search the web to find preliminary information on what a career in tax consultation is like. You may also want to attend a webinar or workshop for aspiring tax consultants.

Additionally, you can contact people who offer tax consultation services and speak with them about their careers. In your conversations, you can find out information to help you understand the daily expectations and overall compensation. You can also find out more about job satisfaction and potential opportunities for growth.

2. Earn a bachelor’s degree

After researching what it’s like to work as a tax consultant, the next step in your career journey is to earn a bachelor’s degree. Consider a degree in accounting, finance or economics. When enrolled as a full-time student, completing your bachelor’s degree should take approximately four years.

Completing a four-year degree can help you gain many of the skills and experience you will need for your career, and it can also help you connect with industry professionals, broaden your professional network and gain access to better jobs.

3. Research your state CPA requirements

CPA stands for certified public accountant. Becoming a CPA is not necessary for a career as a tax consultant, but it is a highly sought-after title in the fields of accounting, finance and tax consulting.

Each state has its own specific requirements for obtaining an official CPA license. Each state has varying levels of education, experience and preparation requirements, but all states require that candidates take and pass a CPA exam. Depending on your location, you may need between six months to two years of industry experience before you are able to take the CPA exam.

4. Apply for an internship

An internship is a professional learning experience, which is sometimes paid or unpaid. Whether paid or not, the majority of benefits come from hands-on experience, networking opportunities and on-the-job training. Typically internships last between one month and nine months, and you may choose to apply for an internship during your last year after school, or you may wait until after you graduate.

Gaining internship experience is especially important for aspiring tax consultants, as it’s a crucial step for those who wish to advance their credentials. Earning the title of CPA, or certified public accountant, represents the highest certification for tax consultants. Depending on your state laws, the time spent during an internship may be applicable toward earning that title.

5. Take the CPA exam and apply for a license

CPA exam is a four-part test, in which each component is completed over the span of 18 months. Regardless of which state you take your exam in, each test is approved and standardized by the American Institute of Certified Public Accountants. The exam tests a person’s knowledge and understanding of auditing, financial accounting and reporting, regulation and business and attestation.

After completing and passing the four-part CPA exam, you can apply for state licensure. Each state has its own set of requirements for obtaining a license, so be sure to find out what documents you need to send in with your application.

6. Apply for a job as a tax consultant

Once you have earned your degree, gained experience at an internship and obtained a certification, it’s time to apply for a job as a tax consultant. You may choose to apply for a position in a public accounting firm, specialty tax consulting firm or law firm.

There are also many tax consulting positions at government agencies at the local level, state level, and federal level. You may even choose to apply to work for a private corporation or open your own tax consulting business.

What is The Meaning of Tax Consultant?

Tax consultants help their clients save money by making wise financial decisions about tax-related issues. They interview clients to gather information about their financial situations and devise strategies to help them reduce their tax liability by taking advantage of tax credits and deductions. Tax consultants ensure their clients fulfill their tax obligations and follow the law.

Prepare Tax Returns

Tax consultants prepare or help prepare tax returns for individuals, organizations, and businesses. The tax returns they prepare vary from simple to complex, and they require significant knowledge of tax rules and regulations. These professionals figure out strategies to minimize taxation by taking advantage of tax deductions and credits.

Determine Taxes Owed

Tax consultants determine how much their clients owe in taxes. In some cases, they determine how much clients overpaid in taxes. They use computers and adding machines to calculate the correct amounts. They follow while following tax form instructions and consulting tax tables to make correct determinations.

Interview Clients/Gather Information

Tax consultants gather relevant financial and tax information from their clients through interviews. Such information includes clients’ taxable income, allowances, and deductible expenses. In some cases, tax consultants use this information to prepare clients’ tax returns. In other instances, they provide information to clients so they can prepare their own tax returns.

Use Technology

Employers often require tax professionals to possess multiple technology skills to perform their job duties. These may include an understanding of how to use accounting software (e.g. Intuit QuickBooks), email software (e.g. Microsoft Outlook), and spreadsheet software (e.g. Microsoft Excel). Tax consultants also need to know how to use tax preparation software and financial analysis software.

Give Information to Clients

Clients often hire tax consultants to gather information and perform legal research for them. Tax consultants must know how to give taxpayers the data they need to complete their tax forms correctly. They should also know how to explain state and federal tax laws to individuals and organizations.

Understand Tax Rules and Regulations

Because the tax code changes so often, tax consultants must continually update their knowledge to ensure they give clients accurate information. This may include taking professional development and continuing education courses, active membership with tax consultant professional groups, and attending conferences.

How do I Become a Property Tax Consultant in Texas?

A property tax consultant assists property owners in lowering their property taxes and contesting assessments that they believe are excessive. While property taxes are commonly charged on all types of property in the United States, most property tax consultants focus on real estate taxes.

To work as a property tax consultant, you’ll need a solid foundation in real estate, real estate appraisal, property tax assessment, or a combination of these fields.

Property tax consultants are educated in a variety of ways. Although no degree programs in the field are currently available, most colleges and universities, including community colleges, offer taxation, real estate, and property appraisal coursework that would provide a good academic foundation for a career as a property tax consultant.

However, much of the training for becoming a property tax consultant comes from hands-on experience as a real estate agent, broker, CPA, or lawyer in the field of real estate appraisal, sales, and taxation.

A property tax consultant’s relationship with property owners is fleeting; unlike more routine tax matters like income taxes, property tax assessments aren’t made annually, and there isn’t the same kind of long-term relationship that one might develop with a trusted tax preparer or lawyer.

As a result, the property tax consultant receives very little repeat business – the majority of his or her business is new, though a successful consultant will receive a significant amount of referral business. Furthermore, while someone with the necessary training and skills could theoretically work as a property tax consultant in any jurisdiction, it’s likely that the more familiar one is with a particular jurisdiction or region, the better the chances of success.

Only Texas requires a license to work as a property tax consultant; unless applicants have related, documented experience, they must complete 40 hours of classroom instruction. Because property tax appeals frequently involve the judicial process, most property tax consultants have relationships with lawyers who will represent their clients in court if the appeal is necessary.

Some states also consider independent property tax consultants to be practicing law without a license; in those states, property tax consultants are usually supervised an attorney.

How Much Tax do You Pay as a Consultant?

Taxes are withheld and transmitted to the IRS on your behalf when you work for an employer, but not everyone is employed by someone else. Some prefer to work for themselves and provide their services and expertise in exchange for fees.

These independent consultants don’t have taxes withheld from what they’re paid throughout the year. They’re required to pay estimated taxes quarterly.

You’re a “sole proprietor” tax filer as an independent consultant, unless you’ve taken steps to establish yourself as another type of business entity, such as a corporation.

Sole proprietors are required to report and file their business taxes with their personal income taxes. This requires completing Schedule C to determine net business income for the year. Schedule C lists all of your revenue for the year, then allows you to deduct reasonable and necessary business expenses to arrive at your taxable business income. This income is then reported on your personal Form 1040 tax return.

You might be able to deduct a portion of the expenses of your home if you have a dedicated space in which you conduct business—a “home office.” You must use this space exclusively for business purposes. Any personal use of the area disqualifies it as a business tax deduction, and it must be the primary location of your business. You run things from there, even if you visit clients elsewhere.

Office supplies or equipment can be deducted on Schedule C as well, along with a percentage of vehicle costs for miles dedicated to business, a percentage of utilities, and other business-related expenses.

The Self-Employment Tax

You must pay Social Security and Medicare taxes as an independent consultant, in addition to income tax. These represent the self-employment tax. Normally, you and your employer would each pay half, but you must pay 100% if you’re self-employed.

The Social Security tax is 12.4% of your net earnings, up to the year’s wage base, which is adjusted annually for inflation. The wage base is $142,800 for tax year 2021. You can stop paying into Social Security for the year until January of 2022 if you hit this threshold. Medicare is taxed at a rate of 2.9% of your net income as of 2021. There’s no wage base for this tax.

You don’t have to pay unemployment taxes if you’re self-employed, unless you hire employees. You would then have to pay it on their behalf. You aren’t personally eligible for unemployment as a sole proprietor unless you voluntarily pay into the program.