Tax accountants use their knowledge of tax laws and regulations to prepare, file, and manage the taxes of individuals and organizations. Learn more about what you need to get started.
A tax accountant handles the taxes for individuals, organizations, companies, or governments. Unlike an accountant who oversees all financial matters, you’ll specialize solely in taxes in this role and follow the tax laws set forth at the federal, state, and local levels.
While income tax preparers also prepare and file taxes for clients, a tax accountant's qualifications and expertise extend beyond this so they can provide ongoing and long-term tax assistance to the people and entities they serve.
As a tax professional, your regular tasks and responsibilities might include:
Preparing federal and state tax returns
Offering tax planning advice
Helping clients save money when it comes time to file taxes
Creating annual tax-related plans for clients to follow throughout the year
Protecting clients from paying more than necessary
Making sure clients meet quarterly and annual tax deadlines
Advising clients about the impact of tax laws and liabilities
Arranging tax audits with authorities when needed
The median annual salary in the US for accountants and auditors is $77,250, according to the US Bureau of Labor Statistics (BLS) . Your salary will vary depending on the level of education and experience you have, the industry you work in, and the state you live in.
Since tax accounting is a subspecialty of accounting, some certified public accountants (CPAs) also work as tax accountants. Otherwise, different types of tax accountants are distinguished by the industry they work for or the clients they focus on. Some examples include:
Forensic tax accountants investigate individuals and businesses in anticipation of a legal proceeding.
Management tax accountants take care of financial and tax matters for organizations and businesses.
Personal tax accountants manage taxes for individuals.
Government tax accountants work with federal, state, and local government agencies.
While degrees aren't always required, most accountants have a bachelor's in accounting or finance. Tax accountants who take courses in tax law are particularly well prepared for their profession. Some employers seek out tax accountants that have master's degrees in accountancy or business administration.
Many tax accountants are certified as well. Earning a certification helps build your skill set and validate your knowledge to potential employers. Here are some popular options.
Certified Public Accountant (CPA): This credential is required for accountants who file reports with the Securities and Exchange Commission (SEC). It requires both passing a national exam and meeting certain state requirements.
Enrolled Agent (EA): This option allows tax accountants to legally represent clients in front of the IRS and involves passing the IRS Special Enrollment Exam.
Read more: What Is a CPA and How Do I Become One?
Tax accounts deal with complex, confidential data that is regulated by law. If you have a keen understanding of mathematics, pay attention to detail, and enjoy serving others in a way that helps them flourish financially, you may be well-suited for a tax accountant role. Take a look at the specific skills you'll need:
Knowledge of the latest federal, state, and local tax laws and regulations
Proficiency in Microsoft Excel and tax preparation software
Understanding of basic arithmetic and statistics to calculate complex tax information
Attention to detail in order to accurately prepare error-free documents and tax returns
Verbal and written communication skills to effectively interact with clients
Organizational skills to keep financial records easily accessible for reference
Time-management skills to meet important deadlines
Critical-thinking and analytical skills to evaluate data, uncover fraud, and minimize tax liability
As you complete your studies and gain experience as a tax accountant, you will likely find that your interests and abilities gravitate toward a certain industry or clientele. Continue to refine your skills in the specialties that you choose, hone your customer service skills, and stay on top of tax law and requirements.
Your career path may also lead you to a different accounting career, such as a management accountant, public accountant, budget director, or internal auditor. Some tax accountants also progress to become top executives and financial managers of corporations, including financial vice presidents, treasurers, controllers, and chief financial officers.
Explore whether a career in accounting may be right for you with a beginner-friendly course from a top university, like Introduction to Financial Accounting from the University of Pennsylvania. Advance your existing skills with a Specialization, like U.S. Federal Taxation from the University of Illinois, or learn more about what it’s like to earn your master’s of accounting online.
Master the technical skills needed to analyze financial statements and disclosures for use in financial analysis, and learn how accounting standards and ...
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US Bureau of Labor Statistics. "Accountants and Auditors, https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm." Accessed November 21, 2022.
This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals.