5 Career Settings for Taxation Accountants

Taxation Accountants: Common Career Settings

  • Tax Preparation Companies
  • The Internal Revenue Service
  • Private and Home Offices
  • Accounting Firms
  • Large Corporations

Accounting majors who are specializing in taxation will be happy to learn that there are several great career settings for taxation accountants. Taxation accountants, or simply tax accountants, are those accounting professionals who prepare and handle tax documents on the local, state, and federal levels. And while they can be found working in a variety of settings, some of the most common settings are described below.

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1. Tax Preparation Companies

Some of the most common career settings for taxation accountants are tax preparation companies. These companies often employ taxation accountants as tax preparers to perform tax-related services for individuals and organizations. People who choose these work settings must stay current on tax codes and have expert knowledge in income tax software and the preparation of both state and federal income tax forms. In addition to preparing tax forms for clients, many of these professionals work year-round providing consultations to clients pertaining to financial planning and a variety of tax-related financial matters.

2. The Internal Revenue Service

Another great work setting for tax accountants is the Internal Revenue Service. Often referred to as IRS tax agents, IRS taxation accountants are responsible for a broad range of tasks. But their main responsibility is to examine the tax returns of both individuals and organizations to ensure that all submitted paperwork is compliant with federal regulations. Other common duties of IRS tax accountants include assessing tax liability, conducting audits, conducting tax-related research studies, and preparing revenue reports for the United States Treasury Department. According to the United States Department of Labor, IRS tax agents earned an average salary of $53,130 in 2017.

3. Private and Home Offices

Other career settings for taxation accountants that are growing in popularity today are private and home offices. These options are great for accounting majors who would like to become their own bosses. Working from a private or home office allows taxation accountants to control their work schedules and client base. Persons who choose one of these options will want to make sure that they obtain a business license from the state where they wish to operate and apply for a Preparer Tax Identification Number from the Internal Revenue Service. It is also a good idea for them to apply for an Electronic Filing Identification number so that they can file electronic returns.

4. Accounting Firms

Accounting firms are also popular career settings for accountants specializing in taxation. Accounting firms can be general in nature offering many different types of accounting services, or they can specialize in one area of accounting such as financial accounting, public accounting, managerial accounting, forensic accounting, or taxation accounting. Taxation accountants who choose to work for accounting firms provide tax services to individuals as well as large and small businesses. Their responsibilities typically involve preparing tax returns, filing state and federal returns, and providing tax-related advice to clients.

5. Large Corporations

Large corporations are also among the many career settings available to taxation accountants. While many large corporations prefer to outsource their tax accounting needs, more and more organizations today are choosing to hire their own taxation staff. Using financial information provided by financial accountants, taxation accountants working for large corporations prepare, complete, and file income tax forms for their employers. They are also responsible for filing estimated taxes, reporting payroll taxes withheld, depositing withholdings, and consulting with top management pertaining to taxation issues.

A common question asked by accounting majors specializing in taxation is where they can work after graduation. There are many terrific career settings available for taxation accountants, and five of the most popular settings are described above.