What Type of Taxpayers Requires the Help of a Tax Professional?

People who pay their taxes responsibly might wonder, what type of people require the help of a tax professional, and it’s a good question, as not everyone can do their taxes themselves, and apart from this, people who are self-employed have to pay their taxes separately as their tax doesn’t just get deducted from their paycheck like office working employees.

So, keep reading and you will find out who exactly is a tax professional, how they help people, and what sort of people they help.

First, Who Is a Tax Preparer Anyway?

Before explaining anything, you first need to know who is a tax preparer? A tax preparer is someone who is an expert and trained to help citizens and businesses file their taxes correctly. You can know a tax preparer by different names:

• Enrolled Agents (EAs) – licensed by the IRS
• Certified Public Accountants (CPAs) – accountants with state licenses and broad expertise
• Tax Attorneys – lawyers who specialize in tax law
• Or even experienced seasonal preparers

These guys file your taxes, maximize deductions and make sure that you are not committing a sort of fraud, accidently of course, because you misunderstood line 13 or Schedule C.

Do I really need a tax professional or am I just overthinking this?

Its not complicated if think clearly, its true that not everyone requires a professional help, but to be very honest tax season does get a bit overwhelming, most people just punch a W-2, click submit and you are done, it got done even before your coffee got cooled down.

But what about other? People who are running a small business, or people who have established a startup.

Imagine someone stuck in a question “Wait what! I am supposing to file my taxes in two states?” For these kinds of situations tax professionals’ step in, imagine them as your tax doctors any sort of tax hazard comes up and you end up getting a meeting done with a consultant.

Tax Preparer Duties (Yes, They Do More Than Just Play Around Numbers)

A real tax professional does more than just submit a return, they:

• Reviews all sources of income
• Identifies available deductions and credits
• Prepares forms for federal, state, and local returns
• Advises on tax-saving strategies
• Represents you in front of the IRS (if they’re an EA, CPA, or attorney)

Basically, they help you pay what you owe, but not a penny more.

Tax Preparer Areas of Expertise

Every situation is different for taxation, and even the fees vary depending on your tax condition.

Some Tax Preparers specialize in:

• Self-employment tax
• Real estate investment
• Crypto taxes
• Multi-state filings
• Foreign earned income
• IRS audits and resolutions

So, if your situation includes one or more of these elements, it’s worth calling in a professional.

Small Business Tax Preparer – A Lifesaver for Owners

If you are running a small business, startup, side hustle, or even as a freelancer, taxes for you more than just a once-a-year headache, you have to worry about:

• Business income
• Expenses to track
• 1099s (Yes, more than one)
• Estimated tax deadlines
• Payroll issues if you have contractors or employees

A small business tax preparer can help you:

• Classify expenses correctly (goodbye, audit risk!)
• Maximize deductions for home offices, internet, mileage, and software
• File quarterly estimated payments
• Choose the best structure for tax savings (S-corp, anyone?)

If you’re earning more than $30,000/year freelancing or running a side business, a tax pro is not optional—they’re essential. More the money, more the taxes, and more the procedures.

What’s the Difference Between a Tax Preparer, Tax Accountant, and Tax Consultant?

As much as they sound the same, trust me they are not synonyms, they are all different people with different duties.

Think of it this way:

• Tax preparer = tactical
• Tax accountant = managerial
• Tax consultant = strategic

Bookkeeper vs. Tax Professional – Not the Same Thing

Trust us, they both are way different, one is like a Gastric doctor the other is like a dentist, both are doctors but with way different expertise.

• Bookkeeper = Tracks your financial transactions and organizes data
• Tax Professional = Analyzes that data and files tax returns or offers legal strategies

Both are crucial, but don’t expect your bookkeeper to give you audit defense or know about IRS tax codes.

How to Become a Tax Preparer (If You’re Thinking About It)

Apart from the training part, theoretically speaking anyone can become a tax preparer by doing their taxes themselves, but being a professional requires training and expertise.
To become a trusted tax preparer, one typically:

1. Takes an IRS-approved tax course
2. Gets a Preparer Tax Identification Number (PTIN)
3. Gains experience with returns and deductions
4. Pursues additional licensing (like EA or CPA)

Pro tip: If you’re ever hiring one, ask about credentials. Don’t hand your finances to someone who “just learned taxes on YouTube.”