Atax advisorortax consultant is a person with advanced training and knowledge of tax 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 fornt of German tax courts (Finanzgerichte).
InItaly, tax advisors are called commercialisti, and provide assistance on business management, business law, economics, finance, tax, accounting, commercial, corporate and administrative matters.[3][4] Dottori commercialisti, who have a degree in economics, and ragionieri commercialisti, who have a specific high school diploma, were members of two different professional orders, but they were merged in 2008 into the Ordine dei Dottori Commercialisti e degli Esperti Contabili (Italian for "Professional order of tax advisors"), and it is now impossible to become a commercialista without a laurea magistrale. Esperti contabili, whose roles are similar to those of a commercialista, must have a laurea, a first cycle degree that is equivalent to a bachelor's degree. According to the Italian law, the following activities are some of the roles of a commercialista:
InJapan, there is a specific license for tax advisors called certified 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 an attorney at laworcertified public accountant.[8]
InSouth Korea, there is a specific license for tax advisors called certified tax accountant. In order to obtain this qualification, an individual must pass a special examination.
In the UK, guidelines concerning professional conduct in relation to taxation are published in conjunction with the Chartered Institute of Taxation, the Association of Taxation Technicians, the Institute of Indirect Taxation, the Institute of Chartered Accountants in England and Wales, the Institute of Chartered Accountants of Scotland, the Society of trust and estate practitioners (STEP) and the Association 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 an Enrolled Agent (EA) by successfully passing an exam administered by the Internal 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 a Bachelor'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 the United 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]