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

Tax preparers and tax advisors are two distinct roles in the tax law world in Washington. A tax preparer is a professional who assists individuals and businesses with their filing, typically to the Internal Revenue Service (IRS). They help taxpayers complete and file their tax forms, and may recommend certain deductions or credits that can lower the amount of taxes owed. A tax advisor is a professional who provides more comprehensive services than a tax preparer. Tax advisors advise clients on how to maximize their deductions and credits to minimize their overall tax burden. They may also provide advice on how to structure their businesses to reduce taxes, such as forming different types of partnerships or businesses. Additionally, tax advisors can provide a more in-depth analysis of a taxpayer’s finances, such as designing strategies for long-term financial goals. Overall, tax preparers only complete and file the necessary tax forms, while tax advisors provide more in-depth guidance and consultation. This includes advice on tax strategy, long-term planning, and more. Tax advisors often provide better and more comprehensive tax assistance than tax preparers, making them the preferred choice for many people and businesses.

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

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