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, dealing with an audit from the IRS, and all tax-related issues.
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There is no official license that deems a person to work as a tax consultant. Typically a tax consultant will 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)
A tax consultant is generally someone who works for a larger consulting firm, as all tax consultants need years of experience before they can set up shop on their own. Tax consulting is divided into two categories – personal tax services and corporate tax services. Many of the largest companies in the world use the same four, also known as the ‘Big 4’ (KPMG, EY, Deloitte, and PwC) accounting firms to handle all their 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 due on April 15th of each year by filing an annual tax return. Service members and diplomats are given a 2-month extensions to file their taxes. Even if a person does not have the money to pay their taxes come April 15th, they still must file their taxes, as not filing and not paying are two completely separate issues. Harsh penalties can arise for not filing your tax return, including jail time.
If you need more time to pay taxes, you can call the IRS to work out an arrangement to pay owed taxes (for example, paying with monthly installments). For company owners and for the self-employed who make over $1,000 per year, estimated taxes need to be reported quarterly. Normal employees automatically have their taxes withdrawn from their paycheck, which is why they only need to report annually (April 15th). Taxes are not withheld from the self-employed and therefore the IRS holds them accountable to a higher degree, making the self-employed pay taxes 4 times per year (April, June, September, January). However, 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.