8 Tax Careers: Professional Specializations

Exploring tax careers reveals numerous opportunities in finance and governance. But first, aspiring tax professionals need to understand what taxes are. Governments fund public works and services by collecting taxes from individuals and corporations. These public works and services include everything from building and maintaining infrastructure to supporting social services. 

There are various types of taxes paid to government entities like the Internal Revenue Service (IRS) and state government authorities, each based on set tax rates. Examples include the following:

• Income Tax: A percentage of an individual’s generated income
• Corporate Tax: A percentage of a corporation’s profits
• Property Tax: Taxes based on the value of land and property assets
• Sales Tax: A percentage added on top of the total cost of goods and services, varying by type of sale and jurisdiction

Tax professionals’ career trajectories can vary depending on their background and area of focus. One person might start as a tax preparer, focusing on filing tax returns, while another might aim for a tax manager role. 

Understanding these diverse pathways is essential for aspiring tax professionals and those looking to work in a new specialization in the accounting field. Choosing the right educational path is also critical for individuals looking to start or advance their tax careers. 
 

CPA Career Paths

Certified public accountants (CPAs) are licensed professionals who ensure the financial accuracy and regulatory compliance of organizations and individuals and assist with their tax preparation and auditing. They handle financial forecasting, account management, and audits, and provide strategic advice. CPAs also prepare and analyze financial reports to meet legal standards.

To become a CPA, one needs to hold a bachelor’s degree, complete 150 college credits, and pass the Uniform CPA Examination, often including an ethics exam, from the American Institute of Certified Public Accountants (AICPA). Required coursework topics typically include business, accounting, economics, and ethics. Maintaining a CPA license requires ongoing education through continuing professional education (CPE) credits.

CPAs can advance their tax careers through various paths, such as the following:

• Public Accounting: Professionals working in public accounting specialize in audit, tax, or consulting. They ensure the accuracy of financial statements and guide their clients to comply with tax laws and regulations. Additionally, they offer strategic advice on tax planning, risk management, and financial planning.
• Corporate Accounting: The primary specializations of corporate accounting are financial reporting, management accounting, and internal auditing. Individuals working in corporate accounting prepare financial statements that accurately reflect a company’s performance and ensure its compliance with accounting standards. Their additional responsibilities include budgeting, forecasting, and analyzing financial data to support business strategies.
• Government and Nonprofit Accounting: Individuals working in government and nonprofit accounting manage public funds and nonprofit finances. They ensure public funds are used efficiently and transparently, following strict regulatory and reporting requirements. Additionally, they oversee financial operations in nonprofits, helping them maintain financial health and achieve their organizational goals.
• Financial Services: Individuals with an accounting background can become financial planners. These professionals work in investment banking, where they assist with mergers and acquisitions. Investment banking accountants evaluate companies’ financial health, conduct due diligence, and structure deals. 

Each CPA career path encompasses various industries and roles, providing ample opportunities for professional advancement.
 

Benefits of Earning a Master’s Degree in Taxation

The accounting industry is facing a shortage of CPAs, partly due to the demanding education requirements. To address this issue and to support those seeking a better work-life balance, U.S. tax accounting programs offer flexible education pathways. 

For example, California State University, Northridge, provides a 19-month Master of Science in Taxation program that is available both in person and online, offering a comprehensive education and practical experience alongside flexible learning environments. 

Reasons to earn a master’s degree in taxation include increasing one’s earning potential, as well as gaining a competitive edge due to having a deeper knowledge of taxation and an expanded professional network.

A master’s degree program in taxation provides individuals with specialized knowledge in taxation, preparing them for roles that range from tax advisor to tax manager. The comprehensive coursework in a master’s degree in taxation program can help students sharpen their problem-solving and analytical skills as well, allowing them to navigate complex tax issues and develop effective strategies to minimize liabilities. A master’s degree in taxation can also help individuals meet the CPA exam requirements, if they haven’t already done so.

Networking is another perk of earning a master’s degree in taxation. While enrolled in a master’s program, individuals can connect with industry professionals, professors, and peers, building valuable relationships that can benefit their careers. 
 

8 Careers for Taxation Master’s Degree Graduates

The journey toward a career after graduation is an exciting one with countless possibilities. The right role will not only match an individual’s skills and interests but also allow them to make a significant impact in a business, government organization, nonprofit, or other organization. 

Positions for Master of Science in Taxation degree graduates that offer the chance to grow professionally include the following:

1. Tax Preparer Job Description

Tax preparers are professionals who assist clients with their tax returns. They ensure the returns are accurate and help clients comply with IRS regulations. Tax preparers with an IRS preparer tax identification number (PTIN) can both prepare clients’ federal tax returns and represent their clients in IRS audits and on tax court issues, depending on their credentials. 

The various credentials — enrolled agent, CPA, or attorney — refer to a preparer’s representation rights and the services they can offer. While individuals with each of these credentials can specialize in tax planning and preparation, requirements to obtain and maintain each of these credentials vary. For example, enrolled agents pass a three-part exam and complete continuing education. CPAs pass the CPA exam, meet state requirements, and complete ongoing education. 

The salary for a tax preparer can vary widely based on their experience and credentials. The U.S. Bureau of Labor Statistics (BLS) reports that the median annual salary for tax preparers was $49,010 as of May 2023. Location also plays a factor in a tax preparer’s salary. According to the BLS, the mean annual tax preparer salary in New York is $72,810 while in Florida it is $50,120.

2. Tax Associate Job Description

Tax associates help clients file their taxes easily and accurately. They handle everything from analyzing financial records and researching tax issues to completing forms. By staying updated on tax laws, tax associates keep their clients compliant and help them avoid penalties. They also save money for their employers or clients by identifying deductions and offering tax advice. 

Tax associates’ duties include organizing and analyzing financial information, minimizing tax liabilities, preparing and filing forms, advising on tax matters, and assisting with audits. They must be highly organized and follow privacy laws. Typically, a bachelor’s degree in accounting is required, with larger companies often preferring a master’s degree and CPA licensure.

According to Payscale, the median annual salary for tax associates was approximately $63,000 as of July 2024. However, a tax associate’s location can play a role in their compensation. For example, the median salary of tax associates in San Francisco was 18% more than the national median annual salary as of July 2024.

3. Tax Advisor Job Description

Tax advisors help organizations navigate tax laws and regulations, providing strategic advice to help them minimize their liabilities and ensure they are compliant with all regulations. They can pursue the accredited tax advisor (ATA) credential from the Accreditation Council for Accountancy and Taxation (ACAT), demonstrating their expertise through specialized education, experience, and passing a rigorous exam. 

ATA practitioners handle sophisticated tax planning, including for closely held businesses, highly compensated individuals, retirement plans, and estate planning. Their expertise covers tax returns for individuals, businesses, fiduciaries, trusts, and estates, along with tax planning and consulting.

Tax advisors may be accountants, lawyers, or financial advisors or work on a team of these professionals. A bachelor’s degree in accounting or a related field is necessary, and CPA licensure and a master’s degree enhance a candidate’s job prospects. Pursuing continuing education is crucial for tax advisors due to frequent tax law changes.

As of July 2024, the median salary for financial advisors was about $68,000, according to Payscale, with salaries ranging from $43,000 to $118,000, depending on an individual’s experience and other factors.

4. Tax Consultant Job Description

Tax consultants advise individuals and organizations on tax-related matters, ensuring they are compliant with all regulations and minimizing their tax liabilities. They handle complex tax returns for clients with intricate estates, often retaining clients over multiple years. Their responsibilities include preparing tax returns, representing clients in audits, and offering strategic tax optimization advice.

Businesses such as accounting firms, law firms, banks, and real estate companies frequently engage tax consultants. While a master’s degree is generally optional for these roles, it can provide candidates with deeper exposure to complex tax issues. Graduate programs that best prepare individuals to be tax consultants cover taxation, accounting, business administration, and legal studies. Tax consultants are responsible for tax planning, advice, document preparation, and audit representation.

Staying updated with tax laws is crucial for tax consultants, which they achieve through attending seminars, reading journals, and networking. Essential qualifications for the role include an undergraduate or graduate degree in accounting, finance, or tax. Professional designations like CPA or ATA are beneficial for job-seekers. Becoming a tax consultant involves certification exams, gaining experience, and pursuing continuing education.

As of July 2024, Payscale reports tax consultants had a median annual salary of about $70,000, with individual salaries varying based on experience, credentials, and specific skills like legal research.

5. Tax Accountant Job Description

Tax accountants help companies make proper tax calculations and prepare documents for filing season. They handle complex calculations for expenses and shareholder distributions. Tax accountants go beyond simply preparing taxes by analyzing financial records, identifying tax credits, and devising strategies to minimize tax liabilities. Their tasks include maintaining tax records, managing compliance calendars, and responding to tax authorities. 

Qualifying for a job as a tax accountant requires a bachelor’s degree in accounting or a related field. Employers look for strong organizational, research, and communication skills. Tax accountants’ duties include preparing taxes, advising clients on minimizing their tax liability, and keeping them informed about changes in tax laws. Tax accountants need to be detail oriented, knowledgeable about business concepts and regulations, and comfortable with financial data. 

Some employers prefer candidates with a master’s degree or credentials like CPA licensure or the certified financial planner (CFP) credential from the Certified Financial Planner Board of Standards. According to Payscale, the median annual salary for tax accountants was $61,000 as of July 2024, with skills in financial analysis and software knowledge increasing an individual’s salary potential.

6. Tax Manager Job Description

Tax managers are essential in ensuring organizations comply with tax laws and regulations. They oversee tax return preparation, manage audits, and handle inquiries from tax authorities. By reviewing financial statements and tax documents, they help their clients prevent penalties and legal issues.

To become a tax manager, a bachelor’s degree in accounting, finance, or a related field is typically required. Many aspiring tax managers also pursue a master’s degree in accounting or taxation for a deeper understanding of complex tax laws. Credentials like CPA licensure or chartered accountant (CA) certification are helpful, demonstrating a thorough knowledge of accounting principles and tax regulations.

According to Payscale, the median annual salary for tax managers was $106,000 as of July 2024. Salaries can vary significantly by location; for instance, the median salary of tax managers in San Francisco was about 27% higher than the national median.

7. Forensic Tax Accountant Job Description

Forensic tax accountants combine their accounting expertise with investigative skills to review financial documents in legal contexts. They detect and investigate financial discrepancies and fraud, often working with law enforcement agencies. Their responsibilities include examining records, identifying illicit activities, and providing expert testimony in court. Forensic accountants use accounting and research techniques to uncover and prevent financial crimes, requiring them to have deep knowledge of investigative techniques, fraud detection, and legal proceedings.

To become a forensic tax accountant, a bachelor’s degree in accounting or a related field is typically required. Credentials like CPA licensure or the certified fraud examiner (CFE) credential are highly regarded. The CFE credential asserts that forensic accountants have the technical knowledge necessary to perform effective investigations, and that they can efficiently and strategically oversee complex cases. Unlike auditors, forensic accountants must determine which areas or functions require their attention, a process that can be challenging and time consuming.

A keen eye for detail combined with analytical skills are essential in this field. Pursuing continuing education helps individuals stay up to date with evolving standards and technologies. According to Payscale, the median annual salary for forensic tax accountants was $78,000 as of June 2024, with variations based on an individual’s experience, location, and the complexity of the cases they work on. 

8. Management Accountant Job Description

Management accountants work for public companies, private businesses, and government agencies, handling responsibilities such as recording financial data, managing investments, handling risk management, budgeting, planning, strategizing, and making decisions. They need strong skills in accounting, generally accepted accounting principles (GAAP), math, business, and leadership.

Management accountants are part of teams, providing executives with vital information and analysis for decision-making. Their insights are crucial for preparing financial reports for shareholders, creditors, regulatory agencies, and the IRS. Management accountants focus on delivering financial data that can help company managers make informed decisions, which means these accountants must be able to present data practically and understandably.

Management accountants should understand management functions and operations to present useful accounting information. Skills in cost analysis, budgeting, and strategic planning are essential, and previous leadership experience is generally recommended. 

Typically, a bachelor’s degree in business or accounting is required to become a management accountant, but a master’s degree is preferred. Advanced certifications, such as the certified management accountant (CMA) or chartered global management accountant (CGMA) credentials, are highly beneficial. 

According to Payscale, the median annual salary for management accountants was $71,000 as of December 2023, with those in Boston having a median salary that was about 13% higher than the national median.
 

Master’s in Taxation Salary and Job Outlook Information

Earning a master’s degree in taxation provides professionals with in-depth knowledge of complex tax laws and advanced tax strategies, making them more valuable to employers. This specialized expertise often leads to higher earnings as it equips individuals with the skills to handle sophisticated tax issues and offer strategic advice. The increasing complexity of tax regulations and the global nature of business transactions have heightened the demand for experts who can navigate these challenges effectively.

Individuals with a master’s degree in taxation can pursue any of a number of accounting or auditing roles. According to the BLS, the median annual salary for these professionals was $79,880 as of May 2023. A master’s in taxation salary can vary based on factors such as an individual’s education, certifications, and location. 
The BLS projects 4% job growth for accountants and auditors from 2022 to 2032. This growth is expected to be driven by several factors:

• Regulatory Changes: Constant updates and changes in tax laws and regulations require organizations and individuals to hire professionals who can interpret and apply these new rules effectively.
• Globalization: As businesses expand internationally, the need for tax professionals who understand international tax laws and treaties increases.
• Technological Advancements: New technologies, including automation, data analytics, and artificial intelligence (AI), are transforming the accounting industry, requiring professionals to continuously update their skills and knowledge.
• Economic Growth: As the economy grows, so does the number of businesses and individuals requiring tax and accounting services.
   

Prepare to Advance Your Tax Career

The diverse landscape of tax careers offers a broad range of opportunities, each catering to certain interests and skills, from the detail-oriented tasks of a tax preparer to the complex international concerns of a tax advisor. Individuals in each of these roles, with their unique responsibilities, qualifications, and salary expectations, play a crucial part in helping organizations and individuals maintain financial and legal compliance while navigating tax laws effectively. 

Continuing education and professional certifications are common threads among tax career specializations, emphasizing the value of expertise and adaptability in an ever-evolving world. Aspiring professionals should delve into the specifics of their chosen specialization, considering the broader implications of their work on financial practices and legal standards.

The Master of Science in Taxation from California State University, Northridge, offered through its David Nazarian College of Business and Economics, accredited by the Association to Advance Collegiate Schools of Business (AACSB), in partnership with the Tseng College, has received high honors for providing a comprehensive education and practical experience. Courses are taught by leading tax practitioners and are structured in a cohort format to encourage faculty interaction and peer networking.

Learn how the Master of Science in Taxation can help prepare you with the essential knowledge and skills you need to pursue new opportunities and advance your tax career.