A tax advisor is a professional who advises individuals and businesses on strategies to reduce their tax liability and stay compliant. They may be a certified public accountant (CPA), an enrolled agent, or a tax attorney. They must stay up to date on the latest changes in tax law and IRS guidelines. They also advise on investment strategies to maximize return and deductions like home equity, 401(k) contributions, and 529 education plans.

Tax planning is a year-round process. For example, it might include selling money-losing investments before the end of the year to shelter gains and timing donations so they get the maximum benefit. It also involves maximizing the benefits of tax-deferred retirement accounts and health savings plans. Tax planning can even help you avoid compliance issues, such as avoiding fines and penalties for late or inaccurate filings.

Any taxpayer with a complex financial picture could benefit from tax advice, but it’s particularly important for those with small businesses, investment activities in real estate or securities, or trusts. A knowledgeable tax advisor can ensure that you’re claiming all of the deductions and credits that you are eligible for, as well as making sure you’re not being hit with any surprise taxes come filing time.

Some tax professionals specialize in a particular area of the tax code or a specific type of client. A business owner with questions about the tax implications of importing goods from abroad might hire a specialist, or someone who can help with complicated capital gains and losses might seek out a CPA.Steuerberatung