A tax consultant invoice is used to allow accountants and tax professionals to bill their clients (individuals or companies) for tax-related services such as filing tax returns, handling IRS audits, and all other tax-related issues.
There is no official license that is necessary for an individual to work as a tax consultant. Typically a tax consultant will at the least be a certified public accountant (CPA), which requires a license. Tax consulting can cater to a wide list of services, such as:
- Complete tax overview and management
- Audit services
- Finance oversight
- Property (real estate)
Tax consultants generally work for larger consulting firms, as all tax consultants need years of experience before they can set up shop on their own. Tax consulting is divided into two (2) categories—personal tax services and corporate tax services. Many of the largest companies in the world use the same four (4) (also known as the Big 4—KPMG, EY, Deloitte, and PwC) accounting firms to handle all tax-related issues. As for personal tax consulting, there are thousands of small private businesses all over the United States employing tax consultants.
Taxes for all individuals and companies are in April of each year and can be completed by filing an annual tax return. Much like election days, the exact date that taxes are due fluctuates, but the deadline most commonly ranges between April 15th and 18th (2020 taxes are due April 15, 2020). Service members and diplomats are given a two (2) month extension to file their taxes. Even if a person does not have the money to pay their taxes by the due date, they still must file, as not filing and not paying are two separate matters. Harsh penalties can arise for not filing your tax return, including jail time. If you need more time to pay your taxes, you can call the IRS to work out a payment arrangement (for example, paying monthly installments).
For company owners and for self-employed workers that make over $400 per year, estimated taxes may need to be reported quarterly. Normal employees automatically have their taxes withdrawn from their paycheck, but taxes are not withheld from those that are self-employed, which necessitates additional accountability measures. If you’re self-employed, this doesn’t mean you’ll have to file your taxes more than once a year — you simply may need to pay more often. It should be noted that many business owners decide to make themselves employees of their own company and pay themselves a steady paycheck, therefore allowing themselves to avoid paying quarterly taxes. Visit the self-employment details on the IRS website for more information.
- Hourly Rate: $29.09/hr
- Salary: $60,500/yr
(Source: Bureau of Labor Statistics, based on the mean hourly and annual wages)