Job Description of a Tax Analyst
A tax analyst uses business, finance and fiscal skills to evaluate a company's operating data and recommends tax-saving strategies to top management. Additionally, this employee reviews corporate policies, guidelines and internal controls to ensure they comply with regulatory requirements, industry practices and fiscal rules. A tax analyst typically holds a bachelor's degree in tax, accounting or finance.
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Responsibilities
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A tax analyst has two primary responsibilities---helping a company abide by fiscal rules and filing accurate returns. An analyst helps an entity comply with Internal Revenue Service (IRS) rules as well as state and local regulations by assessing internal policies or guidelines around tax reporting processes and ensuring that they are not significantly different from fiscal laws. A tax analyst helps compute quarterly or annual corporate tax liabilities and ensures that the firm files them on time.
Education/Training
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A tax analyst typically holds a four-year college degree in tax or a business field such as finance, accounting, audit or business management. A tax analyst also may hold a master's or a doctorate degree depending on business requirements and industry. Some analysts who worked in public accounting may hold a certified public accountant (CPA) license, while others may be IRS-enrolled agents (EA). A tax analyst typically attends training sessions throughout the year to learn about new developments in fiscal and accounting principles.
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Salary
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Salaries of tax analysts depend on experience, academic credentials and professional certification. Compensation also may be determined by industry or company size. The Bureau of Labor Statistics reports that median wages of tax clerks were $32,510, with the top 10 percent earning more than $49,260 and the bottom 10 percent earning less than $20,950. Financial remuneration is higher for experienced tax analysts. The same government report shows that median wages of tax analysts were $59,430 in 2008, with the bottom 10 percent earning less than $36,720 and the top 10 percent earning more than $102,380.
Career Development
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An undergraduate tax analyst may advance professionally by seeking a CPA license or an EA designation. Alternatively, this employee may take graduate courses in tax, compliance, law or finance. Career growth opportunities are available for employees who use fiscal knowledge to recommend investment decisions to top management. They may move into the wealth management field and advise clients on tax-saving tools and methodologies or fiscal planning strategies. A tax analyst typically moves to a tax accountant or senior accountant role within a few years.
Work Conditions
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A tax analyst works a standard 8:00 a.m. to 5:00 p.m. shift on weekdays but occasionally may stay late at the office if business conditions require it. For instance, an analyst may work late to help senior accountants prepare and file quarterly income tax returns to the IRS.
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References
- Photo Credit TAX TIME image by brelsbil from Fotolia.com
