What is the difference between a tax preparer and a tax advisor?

A tax preparer and a tax advisor are both professionals who deal with taxes and the laws surrounding them, however, they serve different roles. A tax preparer’s main job is to prepare taxes for their clients. This includes collecting all necessary documents, such as W-2s and other income forms, and figuring out which deductions or credits best fit the taxpayer’s situation. The preparer then files the return with the Internal Revenue Service (IRS) and any applicable state agencies. They often work as a part of a larger firm or as an independent contractor. On the other hand, a tax advisor offers guidance and advice on tax issues. This may include giving advice on how to best structure a business, or offering tax planning and compliance advice. A tax advisor may be able to help identify potential deductions and credits and suggest strategies to minimize taxes. They provide advice on existing and proposed tax laws, and may suggest strategies to help clients minimize taxes on investments or other assets. Both tax preparers and advisors are important in the tax process, although their roles are different. Tax preparers are best suited for helping to complete the tax return, while tax advisors are more suited for giving advice and helping to minimize taxes.

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What is the difference between a tax preparer and a tax advisor?

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