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Becoming a tax advisor begins with earning a bachelor’s degree and finishes with earning a master’s degree for those who want excellent career stability and earning potential.
Tax advisors, or tax preparers and accountants, help individuals and organizations understand, complete and file their tax returns. This can encompass everything from analyzing wage to unemployment to mortgage interest documents.
Earn a Bachelor’s Degree
Tax advisors usually have a bachelor’s degree in accounting or taxation. Some major in accounting and minor in taxation. A bachelor’s degree in accounting will include coursework in corporate taxation, internal controls, fraud audits and federal taxation. Students who major in tax accountancy will take classes in the types of taxation, financial reporting practices and managerial accounting tools. These programs will strongly emphasize the Generally Accepted Accounting Principles (GAAP).
There will most likely be real-world case scenarios that discuss common will, trust, estate tax, joint property and monetary gift issues. Any of these programs will require students to also take classes in microeconomics, business math, statistical analysis and business law. Students will also take classes in technical writing, critical thinking and communication. Some students elect to take a special five-year accounting degree to qualify for CPA licensure. Some of these degree programs will offer internships opportunities.
Earn a Master’s Degree
Earning a master’s degree is an excellent way to increase job competitiveness and professional competency, but it is not required to take the CPA licensure exam. However, most employers prefer tax accounting professionals who hold graduate degrees. These graduate program’s curriculum will provide students with knowledge of accounting codes, regulations, ethical issues and industry best practices. Students will be exposed to asset management methods, business taxation strategies and economic fundamentals.
Resource: Top 10 Best Online Master of Accounting Degree Programs
Program participants will have the chance to understand the complex taxation principles that apply to U.S. residents and companies abroad. Students will learn the International Financial Reporting Standards (IFRS), so they will understand international corporate taxation and corporate levies that are imposed by other countries. Students can take electives in cost accounting, global economics and advanced auditing. Students may specialize in tax research, IRS regulations, estate taxation and international tax planning
Earn Certification
Most advisors qualify for this career by becoming Enrolled Agents (EAs) or Certified Public Accountants (CPAs). Those who want to become EAs must register with the IRS and pass a background check and the three-part special enrollment exam. Applicants with extensive professional experience in a taxation-related position IRS may bypass these requirements. EA candidates must obtain a Preparer Tax Identification Number to include on all tax returns that they prepare.
The requirements for becoming a CPA are set by every state’s Accountancy Board. The standard process involves passing a four-part national CPA exam. Each exam becomes progressively more difficult, but candidates are allowed to take the exam one-by-one with rest periods. In order to qualify for the exam, candidates must finish 150 college hours of coursework in accounting or a related field, which is 30 credit hours over the standard four-year degree. Some accounting programs are specifically geared towards students who want to become CPAs.
Those who are interested in becoming a tax advisor can peruse the Accreditation Council for Accountancy and Taxation’s website.