Tax Preparers vs. Tax Planners

Tax preparers and tax planners are both professionals who work with individuals or businesses to help them manage their tax obligations and potentially save money on their taxes. However, they serve different roles and have different responsibilities.

Tax preparers are responsible for completing and filing tax returns on behalf of their clients. They gather the necessary financial information, calculate the tax liability, and complete and file the appropriate tax forms. Tax preparers may work with individuals or businesses, and they typically charge a fee based on the complexity of the tax return.

Tax planners, on the other hand, work with clients throughout the year to help them minimize their tax liability. They may advise clients on tax-saving strategies, such as taking advantage of deductions and credits, structuring their finances in a way that reduces their tax burden, or identifying opportunities to defer or shift income to a later tax year. Tax planners may work with individuals or businesses and may charge a fee for their services.

The Difference is…

In summary, tax preparers are responsible for completing and filing tax returns, while tax planners are responsible for advising clients on strategies to minimize their tax liability.  Both types of professionals can be valuable resources for anyone looking to manage their taxes effectively.

It’s important to note that tax laws and regulations are constantly changing, and what may be an effective tax planning strategy one year may not be the following year. It’s important to work with a tax professional to ensure that your tax planning strategies are up-to-date and compliant with the existing laws.

There are three main questions you should ask when choosing a tax planner:

• How many strategies are they using?
  • We literally utilize hundreds.
• Can they compare strategies over multiple years and entities?
  • Yes, we can.
• Do they offer implementation, or do they only do the tax plan, leaving you on your own to implement?
  • We do everything for you.

If you’ve never done a tax plan before, we just wanted to make sure you knew that we do them.

And we’re up for providing you a free tax assessment if you want to get prepared — we’d love to see you pay less money to the IRS!

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Brandon Dante

Brandon, is a well-seasoned accountant and heads up the team with 25+ years of senior accounting experience. He holds an Accounting degree with a Minor in Business Administration and a Masters in Accounting. He maintains several certifications and holds various industry related licenses in tax preparation and planning. When Brandon isn't in the office, you'll find this avid dog and animal lover supporting various Bay Area - and beyond - animal charities.

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