Tax Analyst Job Description

Tax analysts prepare, review, and file tax returns and tax forms. Individuals and businesses hire tax analysts to prepare taxes and find ways to reduce tax payments. Tax analysts work independently with minimal supervision, primarily in office environments during daytime business hours. Tax analysts are hired to work full- and part-time shifts but can also work for themselves as independent contractors. Tax analysts do not usually travel to perform their duties, but in rare cases may visit individuals or businesses to prepare tax paperwork.

 

Tax Analyst Duties and Responsibilities

Daily job duties for tax analysts vary based on the complexity of the taxes they’re filing and the assets, expenses, and deductions associated with the business or individual for whom they are preparing tax forms. These core tasks, however, are commonly associated with the job:

Prepare and File Tax Returns

Tax analysts prepare all tax returns and review the documents for accuracy. They then file tax returns before federal and state tax deadlines.

Prepare Quarterly Tax Payments

Tax analysts prepare quarterly tax payments every three months and file these payments with the appropriate corresponding paperwork.

Make Recommendations

Tax analysts make recommendations about tax returns regarding tax breaks, expenses, deductions, and other ways to save on tax payments.

Stay Updated on Tax Law

Tax analysts stay up to date on all tax laws and changes.

Make Calculations

Tax analysts calculate taxes owed, savings gained through deductions, and expenses that affect final tax estimates.

 

Tax Analyst Skills and Qualifications

Tax analysts are highly detail-oriented professionals who use a strong grasp of mathematics and excellent tax know-how to manage all tax paperwork for their company or client. Employers and individuals who hire tax analysts look for professionals who have all the skills essential to performing well, including:

  • Computer skills – tax analysts work with digital forms and online tax filing systems, which requires good computer skills
  • Mathematics – tax analysts use math skills to accurately record and transcribe detailed financial information into tax forms
  • Analytical thinking – tax analysts create highly detailed tax reports and fill out tax forms accurately, which requires analytical skills
  • Attention to detail – because every number on every tax form must be precise and accurate, tax analysts need excellent attention to detail to ensure that all paperwork is letter-perfect
  • Communication skills – tax analysts make recommendations and explain tax processes, which requires good verbal communication skills
  • Time management – tax analysts use strong time management to meet all tax deadlines

 

Tax Analyst Education and Training

Employers seek tax analysts who have a bachelor’s degree in accounting, finance, or a related field of study. Some employers additionally require tax analysts to have previous work experience in a tax or business office environment.

No training is provided to tax analysts, who already have the education and skills needed to prepare tax forms. Candidates are also expected to have a thorough understanding of tax laws, tax forms, and the types of taxes. Once hired, tax analysts begin performing their regular job duties immediately.

 

Tax Analyst Salary and Outlook

According to PayScale job data, tax analysts earn $57,804 in median annual income. Job data provided by the Bureau of Labor Statistics (BLS) shows that tax examiners and collectors and revenue agents earn $53,130 annually. Like tax analysts, these agents determine how much money individuals and businesses owe in taxes and prepare tax returns. The BLS estimates that jobs in this field will experience little to no change through 2026.

Tax analysts who find full-time employment through a business typically receive full benefit packages that include health insurance with dental and vision coverage. Life insurance and 401(k) retirement options come standard in these packages. Paid vacation days, sick days, and holidays are also typically offered. Some companies additionally provide profit-sharing bonuses in addition to base salary. Part-time tax analysts and professionals who work on an independent contractor basis do not receive benefits and must manage their own healthcare and other needs.

 

Helpful Resources

Browse these books and websites to find jobs, news updates, training opportunities, and techniques for professional tax analysts:

Tax Technology Association – visit this website to explore training webinars, look for jobs in the tax industry, and find upcoming events for tax professionals

Anvil Tax Guide: An Ex-IRS Auditor’s Tips to Organizing Taxes – learn insider tax tips with this guide written by a former IRS auditor. The tips and techniques in this book help tax professionals take full advantage of the US tax system to use all loopholes, tax breaks, and money-saving tricks

Tax Analysts – stay up to date on all tax news and developments with this website, which keeps tax professionals in the loop on all tax laws and changes to tax codes

Green’s 2018 Trader Tax Guide: The Savvy Trader’s Guide to 2017 Tax Preparation and 2018 Tax Planning – this guide contains all the latest tax information as well as tips for mastering the newest tax laws. Information about cryptocurrency tax laws is included in the text

Government Finance Officers Association – find training programs, job listings, and resources for tax professionals at the GFOA website

How to Pay Zero Taxes, 2018: Your Guide to Every Tax Break the IRS Allows – learn more about tricky tax laws and tax forms, including capital gains, tax exemptions, and other tax deductions, with this book designed to help professionals avoid making big tax payments

 

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