Atax advisor ortax consultant is a person with advanced training and knowledge oftax law. The services of a tax advisor are usually retained in order to minimize taxation while remaining compliant with the law in complicated financial situations.[1] Tax Advisors are also retained to represent clients before tax authorities and tax courts to resolve tax issues.
InAustria, Steuerberater is the professional license for tax advisors.
InGermany, Steuerberater is the professional license for tax advisors.[2] Moreover, attorneys-at-law (Rechtsanwälte) and Certified Public Accountants (Wirtschaftsprüfer) are allowed by law the practise tax law in Germany. All three aforementioned professions have unlimited representation rights, including representing clients in front of German tax courts (Finanzgerichte).
InItaly, tax advisors are calledcommercialisti, and provide assistance inbusiness management,business law,economics,finance, tax,accounting, commercial, corporate and administrative matters.[3][4]Dottori commercialisti, who have a degree ineconomics, andragionieri commercialisti, who have a specific high schooldiploma, were members of two differentprofessional orders, which were merged in 2008 into theOrdine dei Dottori Commercialisti e degli Esperti Contabili (Italian for "Professional order of tax advisors"). Access to this order is now restricted with specificlaurea magistrale qualifications.Esperti contabili, whose roles are similar to those of acommercialista, must have alaurea, a first cycle degree that is equivalent to abachelor's degree. According to Italian law, the following activities are some of the roles of acommercialista:
InJapan, there is a specific license for tax advisors calledcertified public tax accountant (税理士,zeirishi). In order to obtain this qualification, an individual must pass a special state examination, or already be qualified as anattorney at law orcertified public accountant.[8]
InSouth Korea, there is a specific license for tax advisors calledcertified tax accountant. In order to obtain this qualification, an individual must pass a special examination.
In theUK, guidelines concerning professional conduct in relation to taxation are published in conjunction with theChartered Institute of Taxation, theAssociation of Taxation Technicians, theInstitute of Indirect Taxation, theInstitute of Chartered Accountants in England and Wales, theInstitute of Chartered Accountants of Scotland, the Society of trust and estate practitioners (STEP) and theAssociation of Chartered Certified Accountants. These were prepared for the assistance of members of the various associations both generally in dealing with clients and the tax authorities and specifically in relation to irregularities and errors.
The guidelines, which include practical advice about a range of legal and ethical issues, are summarised as:
In the United States, the titles "tax advisor" and "tax professional" are generic terms describing several occupations focused on minimizing tax risk and counseling clients on financial management to limit total tax paid.[10]
Generally, tax advisors can be divided into three types: tax return preparers, Certified Public Accountants (CPAs), and tax attorneys.[11][12] In addition, any of these three types of professionals may choose to become anEnrolled Agent (EA) by successfully passing an exam administered by theInternal Revenue Service.[13] EA licensure gives the tax advisor federal representational rights, or the right to speak on a client's behalf to IRS staff on matters related to federal tax obligations.[13]
Tax return preparers assist taxpayers in filling out federal and state tax forms, or do so on their behalf.[12] To do so at the federal level as a business or vocation requires a tax advisor to become a Registered Tax Return Preparer — requiring the candidate pass a 120-question, multiple choice quiz —or to work directly under the supervision of a CPA.[12][11]
There are no mandatory educational requirements to become a tax return preparer. As of 2022, there were 82,370 professional tax return preparers in the United States with a median annual salary of $55,840.[14]
CPAs are authorized to undertake any of the duties of a Registered Tax Return Preparer, without obtaining that specific credential, and can also provide financial audit and attestation services, and supervise unregistered tax return preparers.[15][12]
CPAs are licensed by licensure bodies in each state and territory.[11][12][10] Generally, to obtain licensure, they must hold aBachelor's degree in accounting, pass a written exam, and undergo a minimum period of work under the supervision of a CPA.[11][12][10] Some CPAs are also tax attorneys, and some tax attorneys are also CPAs.[16]
As of 2022, CPAs had an average base salary of $79,316.[17]
Tax attorneys are persons licensed to practice law in a state or territory and who focus on tax law. Tax attorneys can represent clients in state and federal courts and before theUnited States Tax Court.[11][12][10] Some CPAs are also tax attorneys, and some tax attorneys are also CPAs.[16]
As of 2022, tax attorneys had an average base salary of $133,580.[18]
