Tax Accounting involves the use of accounting for tax purposes. Tax law is governed in the United States by the Internal Revenue Code, which sets the basic rules for tax accounting. Tax Accountants are in huge demand because nearly every working American has to file a tax return, and many do not have the time, inclination, or know-how required to complete this task. The nation’s tax code has long been a subject for reform, so tax accountants need to stay abreast of the changes in tax law each year. Tax Accounting is one of the more challenging fields of accounting due to the complexity of the law at its propensity to evolve from year to year.
Associates programs in Tax Accounting are usually two years and train students in basic accounting principles, bookkeeping, information systems, auditing, and federal and state tax laws. Graduates are able to mange payroll systems, conduct audits, and offer tax preparation assistance to individuals and businesses. Bachelor’s programs explore federal tax law, income tax, property tax, and tax deductions. Graduates of these programs can analyze and create tax plans for businesses, individuals, non-profits, and government agencies. Master’s degrees include specializations in financial reporting and auditing, taxation, and managerial accounting.