What does a tax analyst do?
A tax analyst specializes in managing and filing tax forms and tax returns, all while devising strategies to reduce tax payments legally. A tax analyst may work as a member of a company or independently. Moreover, in a company setting, the responsibilities of a tax analyst revolve around coordinating with different departments to obtain all necessary documentation and financial information, maintaining accurate and extensive records of all transactions, and resolving any issues or concerns. Furthermore, it is essential to remain updated with all the tax laws, all while adhering to the policies and regulations of the company.
Tax analyst responsibilities
Here are examples of responsibilities from real tax analyst resumes:
- Utilize QuickBooks to manage client data and prepare necessary financial statements.
- Own the preparation of the consolidated/worldwide provision calculations and AJE, including account reconciliations.
- Prepare ASC 740 tax accounting calculations.
- Input apportionment factors into OneSource tax system.
- Correspond with taxpayers, accountants, and CPAs.
- Assist in federal and state return preparation using OneSource software.
- Generate check requests; process ACH payments base on records make during the state filing period.
- Prepare federal and state tax provisions (ASC 740 and IAS 12) and provision to return true-ups.
- Work with users to understand Federal/State/Local taxation issues.
- Adapt automated federal depreciation system to unique state calculation requirements to ensure efficiency and uniformity.
- Correspond with claimants regarding documentation and net disability benefits as well as various taxation issues.
- Implement use and reporting standards for purchase cards along with performing monthly reconciliations on individual accounts.
- Maintain and update the criteria with regulatory changes and revisions that are communicate through IRS notifications.
- Gather and analyze expatriate client data for complex international tax return preparation in accordance with IRS guidelines.
- Institute internal controls for a client by developing standardize operating procedures for their global payroll and assignment management processes.
Tax analyst skills and personality traits
We calculated that 6% of Tax Analysts are proficient in Tax Audits, Reconciliations, and Tax Compliance. They’re also known for soft skills such as Computer skills, Interpersonal skills, and Analytical skills.
We break down the percentage of Tax Analysts that have these skills listed on their resume here:
- Tax Audits, 6%
Coordinate outside sales/use tax audits including identifying and accumulating the necessary information and present to auditors in cooperation with Tax Director.
- Reconciliations, 4%
Prepare monthly reconciliations for multiple legal vehicles and submit balance verification in E-Recon Balance Substantiation system.
- Tax Compliance, 4%
Reviewed and approved documents and other communications containing information relevant to Product Tax Compliance for both internal and external use.
- Tax Payments, 4%
Reconciled and initiated withholding and unemployment tax payments on a daily basis and provided accurate information to the Funding Management Agent.
- Tax Software, 4%
Performed all aspects of testing for tax software; prepared documentation of problem resolutions and introduction new functionality.
- Income Tax Returns, 4%
Managed Hyperion and internal mainframe tax systems used to generate Federal and State/ Local income tax returns including apportionment factors.
Most tax analysts use their skills in "tax audits," "reconciliations," and "tax compliance" to do their jobs. You can find more detail on essential tax analyst responsibilities here:
Interpersonal skills. Many tax analyst duties rely on interpersonal skills. "tax collectors must be comfortable interacting with people. when pursuing overdue accounts, tax collectors should be firm and composed.," so a tax analyst will need this skill often in their role. This resume example is just one of many ways tax analyst responsibilities rely on interpersonal skills: "prepared income tax forms for diverse customers, applying accounting and interpersonal skills. "
Analytical skills. This is an important skill for tax analysts to perform their duties. For an example of how tax analyst responsibilities depend on this skill, consider that "tax examiners and revenue agents must be able to identify questionable claims for credits and deductions and determine if claims are lawful." This excerpt from a resume also shows how vital it is to everyday roles and responsibilities of a tax analyst: "analyze income tax forms and instructions received from the taxing authorities and implement changes into the product. ".
Detail oriented. A big part of what tax analysts do relies on "detail oriented." You can see how essential it is to tax analyst responsibilities because "tax examiners and revenue agents verify the accuracy of each entry on the tax returns they review." Here's an example of how this skill is used from a resume that represents typical tax analyst tasks: "perform tax accounts data analysis; conduct sales detail reviews for internal and auditing purposes. "
Organizational skills. Another crucial skill for a tax analyst to carry out their responsibilities is "organizational skills." A big part of what tax analysts relies on this skill, since "tax examiners and revenue agents may work with multiple returns and a variety of financial documents." How this skill relates to tax analyst duties can be seen in an example from a tax analyst resume snippet: "utilized effective organizational skills and time management to provide excellent customer service. "
Communication skills. Another skill commonly found on tax analyst job descriptions is "communication skills." It can come up quite often in tax analyst duties, since "tax collectors must be able to clearly explain complex details, especially about sensitive information, in their work with the public." Here's an example from a resume of how this skill fits into day-to-day tax analyst responsibilities: "processed quarterly federal tax payments and related intercompany transactions where timeliness and communication was important. "
The three companies that hire the most tax analysts are:
- Kronos Incorporated107 tax analysts jobs
- Wolters Kluwer57 tax analysts jobs
- Guidehouse55 tax analysts jobs
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Compare different tax analysts
Tax analyst vs. Corporate accountant
A corporate accountant is an individual who prepares financial statements and maintains financial records of an organization to ensure that they comply with laws, regulations, and the organization's policies. Corporate accountants are required to analyze financial statements to help executives make financial decisions for the organization. They must collect ledgers and financial reports from divisional offices and prepare corporate financial statements for executives. Corporate accountants must also prepare budgets to allocate funds for spending for each department.
These skill sets are where the common ground ends though. The responsibilities of a tax analyst are more likely to require skills like "tax audits," "tax compliance," "tax payments," and "tax software." On the other hand, a job as a corporate accountant requires skills like "cpa," "external auditors," "close process," and "internal controls." As you can see, what employees do in each career varies considerably.
Corporate accountants really shine in the finance industry with an average salary of $71,156. Comparatively, tax analysts tend to make the most money in the technology industry with an average salary of $79,702.On average, corporate accountants reach similar levels of education than tax analysts. Corporate accountants are 1.9% less likely to earn a Master's Degree and 0.7% less likely to graduate with a Doctoral Degree.Tax analyst vs. General accountant
A general accountant is responsible for evaluating account statements, conducting data analysis with financial transactions, and generating reports on revenues, expenses, and sales forecasting. These accountants manage discrepancies on the company and clients' profiles, including bank reconciliations and processing of account receivables and payables. They also handle the release of invoices and petty cash, analyzing balance sheets, and updating accurate financial information on the database. A general accountant must have excellent analytical skills, as well as extensive knowledge of the accounting principles and disciplines.
In addition to the difference in salary, there are some other key differences worth noting. For example, tax analyst responsibilities are more likely to require skills like "tax audits," "tax compliance," "tax payments," and "tax software." Meanwhile, a general accountant has duties that require skills in areas such as "financial data," "cash handling," "vendor invoices," and "ledgers." These differences highlight just how different the day-to-day in each role looks.
General accountants may earn a lower salary than tax analysts, but general accountants earn the most pay in the automotive industry with an average salary of $63,004. On the other hand, tax analysts receive higher pay in the technology industry, where they earn an average salary of $79,702.Average education levels between the two professions vary. General accountants tend to reach similar levels of education than tax analysts. In fact, they're 3.9% less likely to graduate with a Master's Degree and 0.7% less likely to earn a Doctoral Degree.What technology do you think will become more important and prevalent for tax analysts in the next 3-5 years?
Michele Flint
Associate Professor Director of Brooklyn Accounting Program, Daemen College
At the same time, technology is evolving so rapidly that what you study today, may not be as relevant tomorrow, as newer software and financial products emerge. The critical thing would be to keep reading about the most recent advancements and emerging technologies to have a conceptual understanding. Learn about industry-specific software (in a general sense), but understand that employers will expect to train you in industry-specific software.
Tax analyst vs. Staff accountant
Staff accountants are employees who are part of the company's accounting department. They are usually certified public accountants (CPAs). Staff accountants should be familiar with accounting tasks. Previous accounting experiences play a huge advantage in their success. They perform a variety of accounting responsibilities such as information verification and analysis, financial report preparation and presentation, financial account reconciliation, billing and payment receiving activities, vendor database management, and invoice processing requirements. They should also know how to do bookkeeping. Staff accountants should have good communication skills, analytical skills, and decision-making skills. They should also be organized and trustworthy since they will be handling confidential information.
Some important key differences between the two careers include a few of the skills necessary to fulfill the responsibilities of each. Some examples from tax analyst resumes include skills like "tax audits," "tax compliance," "tax payments," and "tax software," whereas a staff accountant is more likely to list skills in "external auditors," "internal controls," "balance sheet accounts," and "financial data. "
Staff accountants earn the best pay in the government industry, where they command an average salary of $57,168. Tax analysts earn the highest pay from the technology industry, with an average salary of $79,702.When it comes to education, staff accountants tend to earn similar degree levels compared to tax analysts. In fact, they're 4.0% less likely to earn a Master's Degree, and 0.8% less likely to graduate with a Doctoral Degree.Tax analyst vs. Finance analyst/accountant
In a company setting, a finance analyst/accountant is in charge of handling and monitoring financial activities, ensuring efficiency and accuracy. Their responsibilities revolve around preparing financial reports, performing audits and risk assessments, and identifying any errors and inconsistencies, resolving them promptly and efficiently. They also conduct research and analysis to identify new business opportunities, evaluate the existing procedures to determine its strengths and weaknesses, and recommend solutions to optimize operations for financial growth. Furthermore, as a finance analyst/accountant, it is essential to uphold the company's policies and regulations, including its vision and mission.
Types of tax analyst
Updated January 8, 2025
