How to Be Tax Specialist - Job Description, Skills, and Interview Questions

Aug 17, 2020 / 6 Minutes Read / By Albert

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Changes in the tax laws can have a major impact on businesses and individuals alike. For example, when the Tax Cuts and Jobs Act of 2017 was passed, it changed the way businesses and individuals approach their taxes. The act reduced the corporate tax rate from 35% to 21%, and provided more favorable pass-through tax rates for certain businesses.

it altered the individual income tax brackets and increased the standard deduction for individuals. These changes have caused a shift in the way taxes are paid, creating a need for specialized tax professionals who understand the nuances of the new law. Tax specialists must have a comprehensive understanding of these new regulations in order to assist taxpayers in filing their returns and take advantage of any available deductions or credits.

Steps How to Become

Obtain a Bachelor's Degree. The first step to become a tax specialist is to obtain a bachelor's degree in accounting, finance, business or related field. Many employers require tax specialists to have a bachelor's degree.
Earn a Master's Degree. In addition to a bachelor's degree, some employers may require tax specialists to have a master's degree in accounting or finance. A master's degree can be beneficial for those wanting to advance their careers in the field.
Gain Experience. After obtaining a bachelor's or master's degree, it is important to gain experience in the field. This can be done through internships, working for accounting firms, or volunteering with a local non-profit organization.
Become Certified. Becoming certified as a tax specialist can help you stand out from other applicants. There are several certifications available, including the Certified Public Accountant (CPA), Certified Tax Preparer (CTP), and Registered Tax Return Preparer (RTRP).
Stay Up-to-Date. In the field of tax preparation, the laws and regulations are constantly changing. It is important for tax specialists to stay up-to-date on the latest changes in order to provide the best service to their clients.

Tax specialists are highly skilled and qualified professionals who are responsible for understanding, preparing and filing taxes for individuals, businesses and other organizations. Tax specialists must have a thorough understanding of the current tax laws and regulations, as well as the ability to interpret and analyze complex financial data. They must be knowledgeable about accounting principles and practices, as well as federal and state tax laws.

In addition, they must possess strong analytical and communication skills, be highly organized and detail-oriented, and have the ability to work with large amounts of data. The job of a tax specialist requires an extensive amount of research and analysis, which often involves the use of specialized software and computer applications. Becoming a tax specialist requires a great deal of education, experience, and certification.

Most tax specialists hold at least a bachelor's degree in accounting or finance, or have completed an accredited tax preparation program. In addition, many tax specialists obtain voluntary certifications in areas such as taxation, accounting and financial planning. Obtaining these certifications demonstrate a level of expertise and commitment to the profession that employers look for when hiring tax specialists.

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Job Description

Tax Consultant: A Tax Consultant is a professional who provides advice to clients on various tax-related matters. They analyze financial data, interpret tax laws and regulations, and provide guidance to businesses and individuals on how to minimize their tax liabilities.
Tax Analyst: A Tax Analyst is responsible for researching and interpreting tax laws and regulations, as well as preparing and filing tax returns. They also review documents and financial records to ensure accuracy and compliance with applicable laws.
Tax Accountant: A Tax Accountant is responsible for preparing and filing taxes for individuals, businesses, and other organizations. They analyze financial information, prepare tax returns, and advise clients on the best strategies to reduce their tax liabilities.
Tax Lawyer: A Tax Lawyer specializes in the legal aspects of taxation. They provide legal advice to clients on various topics related to taxes, such as filing requirements, tax planning strategies, compliance issues, and dispute resolution.
Tax Auditor: A Tax Auditor is responsible for reviewing the accuracy of tax returns and verifying that they comply with applicable laws and regulations. They also investigate suspicious activity in order to detect tax evasion and fraud.

Skills and Competencies to Have

Excellent knowledge of tax laws and regulations
Ability to interpret and apply tax laws and regulations
Analytical and problem-solving skills
Ability to research and interpret financial data
Ability to accurately prepare complex tax returns
Strong organizational and time management skills
Knowledge of accounting principles and procedures
Practical experience with tax accounting software
Excellent written and verbal communication skills
Knowledge of financial statement preparation
Knowledge of auditing principles and procedures
Proficiency with Microsoft Office Suite and other accounting software

Tax specialists play a vital role in the financial well-being of individuals and organizations. Having a thorough understanding of tax laws, regulations and filing requirements is essential for tax specialists. This requires a deep knowledge of accounting principles, the ability to do complex calculations, the ability to interpret the nuances of complex tax legislation and the ability to communicate effectively with clients.

tax specialists need to be well-versed in the latest tax software and technologies to ensure accurate and timely filing of taxes. This expertise helps tax specialists identify potential deductions and maximize the potential of their clients returns. Furthermore, having a thorough understanding of the current tax laws and regulations is essential to ensure that their clients are in compliance with applicable laws.

By helping to provide sound financial advice, tax specialists can help individuals and businesses save money, minimize their tax liabilities, and improve their overall financial health.

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Frequent Interview Questions

What experience do you have in the tax field?
How familiar are you with current tax laws and regulations?
What methods do you use to stay up to date with changes in the tax code?
What strategies do you use when preparing a tax return?
What challenges have you faced while working with complex tax returns?
How do you ensure accuracy when filing tax returns?
What processes do you follow when dealing with tax audits?
How do you handle difficult clients or situations?
Are there any tax areas in which you are particularly knowledgeable?
Describe a successful experience you've had while preparing a tax return.

Common Tools in Industry

Tax Preparation Software. Software designed to help individuals and businesses manage their taxes. (eg: TurboTax)
Tax Planning Software. Software designed to help calculate estimated taxes and plan for tax season. (eg: TaxAct)
Tax Audit Software. Software designed to help investigate potential tax fraud or errors. (eg: TaxAudit. com)
Tax Research Software. Software designed to help research the latest tax laws, regulations, and rulings. (eg: CCH IntelliConnect)
Tax Optimization Software. Software designed to help identify tax savings opportunities and minimize tax liabilities. (eg: Avalara TaxRates)

Professional Organizations to Know

American Institute of Certified Public Accountants (AICPA)
National Association of Tax Professionals (NATP)
Federation of Tax Administrators (FTA)
National Society of Tax Professionals (NSTP)
National Tax Association (NTA)
National Association of Enrolled Agents (NAEA)
International Tax Planning Association (ITPA)
Council on State Taxation (COST)
International Fiscal Association (IFA)
Institute of Business Appraisers (IBA)

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Common Important Terms

Tax Return. A tax return is a form used to report income, expenses, and other information to the Internal Revenue Service (IRS).
Tax Preparation. Tax preparation is the process of completing and filing an individual or businesss tax return.
Tax Law. Tax law is a set of laws and regulations governing the taxation of individuals and businesses.
Tax Planning. Tax planning is the process of structuring ones financial affairs in order to minimize taxes.
Tax Audit. A tax audit is a procedure conducted by the IRS or state taxation authority to verify that a taxpayer has reported their income and expenses accurately.
Tax Resolution. Tax resolution is the process of resolving issues with the IRS or state taxation authority, such as unpaid taxes or the filing of back taxes.
Tax Credits. Tax credits are dollar-for-dollar reductions in the amount of taxes owed.
Tax Deductions. Tax deductions reduce the amount of taxable income, which results in a lower tax liability.
Tax Shelters. Tax shelters are investments or strategies used to reduce or defer taxes.
Estate Planning. Estate planning is the process of organizing ones finances and assets in order to minimize taxes upon death.

Frequently Asked Questions

What is the role of a Tax Specialist?

Tax Specialists are responsible for preparing, filing, and managing taxes for individuals and businesses. They analyze financial data to ensure accuracy and compliance with federal, state, and local regulations. They also provide guidance on strategies to minimize tax liability.

What qualifications are needed to become a Tax Specialist?

Tax Specialists typically need to have an undergraduate degree in accounting, finance, or a related field. They also need to have knowledge of tax laws, regulations, and filing procedures. Most states also require tax specialists to become licensed or certified.

How much do Tax Specialists earn?

According to the Bureau of Labor Statistics, the median annual wage for tax specialists was $54,680 in 2019. Salaries can vary depending on experience and the size of the organization.

What type of organization employs Tax Specialists?

Tax Specialists are employed by a variety of organizations including accounting firms, financial services firms, government agencies, and corporations.

What is the job outlook for Tax Specialists?

The job outlook for Tax Specialists is positive. The Bureau of Labor Statistics projects an 8% growth in employment from 2018-2028, which is faster than the average for all occupations.