Tax accounting is the line of work in which accounting professionals lend their expertise on taxation to private individuals, business operations, and other organizations so they can make smarter financial choices that both uphold tax laws and regulations and legally capitalize on beneficial opportunities. The federal government selects tax accountants of excellent quality to perform audits on tax returns and to make sure that the laws of taxation are being respected.

There are several types of careers in finance that emphasize tax accountant work. Public accountants often become tax specialists. They are sometimes even better known by their job title's official acronym: CPA, or Certified Public Accountant. Forensic accountants use their knowledge of taxes and legal background to determine the legality, or illegality, of certain financial behaviors. Private accountants, or management accountants, are enlisted by companies to keep track of their financial traits and records, which prove important each year during tax season. Government accountants perform their services in the public sector and keep very close track of private persons or companies whose tax affairs deal heavily with governmental regulations. Internal auditors examine companies for examples of fraud or tax evasion. Most tax accountants enjoy steady 40-hour work weeks until tax season arrives, during which their time in the office can dramatically increase. 

Training in tax accounting requires at least a bachelor's degree in a relevant field. More and more, employers are preferring to hire candidates equipped with master's degrees in accounting, or MBA degrees with relevant concentrations. A good number of tax accountants will need to pick up CPA licensing, as their reports are frequently filed with the Securities and Exchange Commission. Specializations within accounting frequently demand even further certification and licensing, such as the CIA or CPA designations. The job outlook for accountants is very positive, with a huge projected increase in future employment possibilities. Accountants can also bank on reliable salaries, with the top tax specialists earning more than $100,000.

Career Specializations

• Public Accountant: Either businesses or individuals may approach a public accountant to support them with understanding and preparing their taxes. 
• Management Accountant: Companies, especially large corporations, will enlist one of these accounts to manage their finances and ready tax documents in time for filing. 
• Government Accountant: The federal government uses these professionals to audit citizens and companies, ensuring that they are adhering to the country's official and legally empowered tax codes. 

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Degree Levels

• Bachelor's Degree in Accounting: 4 years to complete
• Master's Degree in Accounting: 2 years to complete
• Masters in Business Administration with an Emphasis on Accounting: 2-3 years to complete

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Education & Certification Requirements

The bachelor's degree is essential for a career as a tax accountant. The most common major for tax accountant hopefuls is accounting, but other fields of study that should interest them include business management, statistics, public policy, mathematics, and political science. No matter what is chosen as an undergraduate major, students should strongly consider continuing their studies for an advanced degree. The upcoming boom in employment looks to favor those students with master's degrees in accounting, and even more so, MBA graduates who choose to concentrate on the field. 

Licensing and certification is of extremely significant importance to tax accountants. Any candidate expressing interest in public accounting will need to earn CPA licensing. Bachelor's degree holders will need an additional 30 hours of study to prepare for the CPA exam, except in states like California and Vermont. The American Institute of Certified Public Accountants administers the four-part exam, which less than 50 percent pass on the first go-round; all sections of the test must be passed within 18 months of passing one section on the test. Each specialty within accounting offers additional certification: The Institute of Management Accountants (CMA) and the Institute of Internal Auditors (CIA) offer some of the most commonly selected professional designations. Although sometimes a nebulous field, accounting does offer plentiful opportunity to advance up the corporate ladder, with a quality accountant able to consider moving up one position every one to five years. (BLS)

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Salary Information

Tax accountants can expect to receive around $49,000 for their first few years actively practicing their work, empowered by a bachelor's degree; $1,000 more in pay is offered to those with a master's diploma. As they progress in experience and expertise, salary figures typically reach more than $45,000 for the majority of tax specialists. MBA diploma holders can count on reaching the top 10 percent of accountants more quickly than their less studied peers; these top-level professionals earn more than $100,000 in single year. Great pay is not all these accountants can expect; expense accounts, 401(k) plans, and yearly paid leave are also potential perks. (BLS)

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Job Outlook

Accountants and auditors are in for a major increase in the number of available jobs as the future approaches. Estimates have predicted that the industry will experience 22 percent growth in the opportunities of employmen by the year 2018. Those who are CPA certified are definitely enabled to take full advantage of the boom. The same holds for those who wield certifications in their particular accounting specialties. A focus on international business and country-specific tax information should help tax accountants maximize what they can reap from the augmentation. Those who possess a master's or MBA diploma also stand to enjoy the increase in jobs. As always, accountants who demonstrate great powers of communicative and interpersonal skills will prove to be consistently marketable. (BLS)

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Related Careers

Careers in finance are similar to those of tax accountants, in that both professions demonstrate a reverence for carefully managing monetary assets. Investment work for businesses, financial analysis, and consulting clients on building strong financial futures are all potential specialties in the world of finance. As with tax accountants, the most powerful and influential education is found at the master's and MBA levels of schooling. 

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