Income Tax Accountant: Salary and Career Profile
Income tax accountants are responsible for federal and state income tax preparation and compliance on behalf of organizations or individuals. A tax accountant career usually begins with a bachelor’s degree in accounting, and may require internships or on-the-job training for new graduates. Tax accountants apply Generally Accepted Accounting Principles (GAAP) in their daily job duties.
Income Tax Accountants: Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), accountants should experience very strong employment growth in the coming years. This growth is expected to come from an increase of the number of businesses, along with changing financial regulations and increased accountability for publicly held companies.
For individuals pursuing a tax accountant career, the greatest opportunities for success will go to those with expertise in specialized areas – such as international business or current legislation – as well as those who seek advanced education and Certified Public Accountant (CPA) designation.
Tax Accountant Job Duties
Income tax accountants assist in the preparation of federal and state income tax returns. They ensure a company’’s or individual’s compliance with tax laws, incorporating any changes into each year’s filings. Often, income tax accountants research and analyze the impact of tax issues on their employer’s or client’s finances.
Some tax accountants may assist with income tax audits. Ensuring compliance with federal and state regulations is an important responsibility for professionals in this field. Income tax accountants also advise on tax-deductible expenditures to assist their employers or clients in making decisions regarding purchases or operations.
Tax accountant job duties also consist of keeping proper documentation, including reports and statements. These documents provide investors, regulators and company officials proof that financial activities have been conducted and reported properly.
Income tax accountants usually work in office settings. Some may be required to travel between multiple company locations or satellite offices. Tax accountant careers can be stressful, especially during the weeks leading up to tax season. Long hours are usually required during this time.
Salary Potential for Income Tax Accountants
The BLS reports that in May 2009, accountants and auditors earned a median salary of $60,340, with the middle 50% earning between $46,740 and $79,470. While the lowest 10% made about $37,690, the highest 10% brought in $104,450 per year. Recent bachelor’s graduates will generally start out toward the lower end of the range, although those who have passed the CPA exam may command higher salaries. The top earners are usually those with advanced education, extensive experience and industry certification.
Education and Training
Most income tax accountant jobs require a bachelor’s degree in accounting or a related field. Many professionals choose to become CPAs to advance their tax accountant careers. Some employers prefer to hire applicants who hold an MBA with a specialization in accounting and finance. Previous experience in accounting is attractive to many employers, and can be obtained through summer jobs or internship programs while pursuing an accounting degree.
The first step to a tax accountant career generally begins with a bachelor’s degree in accounting.
Employers can be confident that graduates of an accounting education program are able to:
- Accurately establish accounting information systems and tax preparation procedures.
- Adhere to the latest tax regulations and standards.
- Use computers and specialized software to prepare and file tax returns.
- Investigate corporate taxation, trust tax and estate tax systems.
- Apply knowledge gained from a bachelor’s program toward an advanced degree or industry certification.
Your Path to a Tax Accountant Career
Becoming an income tax accountant requires exceptional attention to detail, a high level of organization, a talent for math and an accounting degree. Tax accountants must also develop strong critical-thinking, problem-solving and communication skills. If you possess the integrity and intelligence to pursue a tax accountant career, it can be a very satisfying choice.
