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Tax Auditor Job Description

tax auditor job description

Do you have a head for figures and strong analytical skills?

If so, it is worth considering studying to become a tax auditor. This job mainly involves analyzing financial documents and processes and making sure they comply with tax laws.

You will naturally need to have a deep knowledge of tax laws to do this job and will need to stay up to date. While some people thrive on this type of work, other people can find it to be a bit monotonous.

To discover whether or not this could be your dream job, check out my in-depth…

tax auditor job description

Tax Auditor Job Description

The job description normally begins by outlining the company you would be working for. You could be charged with working for one main client or several different clients. There should be details on the working environment, the people you will work for, and the type of contract.

There should then be an overview of the types of tasks you will be charged with regularly. You can expect to find details of the education, experience, and licensing you need to do this job. If the hiring manager is looking for candidates with specialist skills, there should also be details of these.

Duties And Responsibilities

The duties you will be expected to perfect each day will depend on the company you work for. In some cases, you will travel a lot to visit clients, while in other cases, they may come to you. Regardless of this, there are certain duties and responsibilities that this job is sure to include.

Read more: Tax Accountant Job Description

Inspecting Financial Documents

One of the main duties of this job is examining the client’s tax documents, financial records, and receipts. This is likely to include visiting the client’s place of business to examine their tax records. You should notify them in advance to put their records in order.

Analyzing Data

You need to be able to analyze large amounts of complex financial data from organizations. This will allow you to work out the nontaxable expenses, applicable deductions, and taxable income.

Interpreting Tax Laws

You need to have a deep understanding of the federal, state, and city tax laws and regulations. Then apply these laws and regulations to your auditing procedures. You also need to be able to explain the applicable laws and regulations to your clients.

Making Recommendations

Once you have completed an audit, you will meet with clients and make recommendations for tax payments and compliance. This is likely to include making a presentation for the board of directors. You will also create detailed reports on your findings that will be filed by the organization.

Skills And Attributes

You need strong taxation knowledge and a basic understanding of business. Having certain soft skills will help you to do this job more effectively. To be successful as a tax auditor, you will need to develop the following skills and attributes.

Math skills

This role involves working with complex data and columns of numbers for several hours each day. You need to have a strong understanding of finances and math.

Analytical skills

These skills will help you find answers to financial questions and examine documents. You will need to be able to isolate important data.

Attention to detail

You need to be able to identify any anomalies in the data you are analyzing. Thoroughly examining large amounts of financial data can be draining at times. It is essential to make sure you don’t miss any important details.

Problem-solving skills

You will also need to be able to come up with solutions to critical issues. In some cases, there may be several ways of tackling an issue. You need to be able to identify the best solution for your client.

Communication skills

You need to be able to explain complex tax information to clients in a simple way. You are likely to need to write reports and make verbal presentations.

Computer skills

You are likely to use specialist accounting and auditing software to do this job. This will allow you to create tax forms, study tax laws, and file tax laws. You also need to be able to download online forms and amend them as necessary.

Customer service skills

You need to be courteous with clients at all times. In some cases, meetings may get quite heated. You need to be able to smooth over tense situations and resolve any issues that arise.

Education and Training

You need to hold a bachelor’s degree in accounting or a related field to do this job. Having work experience in auditing or accounting will help to improve your career prospects. This job typically involves a certain amount of travel, so you need to have a driver’s license and your own vehicle.

Certification and Continuing Education

You need to hold Certified Public Accountant certification to submit reports on financial records. To get this, you will need to pass an exam administered by the State Board of Accountancy.

Gaining a master’s degree in accounting or auditing will help take your career to the next level. There are also several additional certification options you can work for. These include the Certified Financial Manager and the Certified Management Accountant.

Types of Tax Auditors

There are several different types of auditor roles within this field. Although they share many of the same responsibilities, they also differ in important ways. Let’s take a look at the main types of tax auditor roles.

Internal Auditors

This role involves working in a full-time capacity for a particular organization. You will regularly perform internal audits to search for fraud and the mismanagement of funds. You will also assess financial records and make recommendations on improvements.

External Auditors

To do this job, you will usually work in an accounting firm as a Certified Public Accountant. You are likely to work with private clients that are assigned to you by the accounting firm. Duties may include advising them of their tax advantages and filing tax forms.

Government Auditors

If you decide to take this route, you will work directly for the Internal Revenue Service. This role mainly involves ensuring the accuracy of governmental records and creating reports. You would also conduct random tax audits on individuals, nonprofit organizations, and companies.

The Working Environment

This will depend on the type of contract you have and the way you prefer to work. You could be based in the office of a large corporation or a government department. Alternatively, you could decide to take the freelance route and mainly work for yourself.

The second option allows you to work from home and set your own hours, at least part of the time. However, you will have to visit different clients at their place of work. Either way, you are likely to put in a lot of hours per week and will spend time working with a computer.

Why Not Become A Financial Advisor?

Firstly, I’ve also put together a selection of banks to apply to, such as my TD Bank Application, and TD Bank Interview Questions, or my Bank of America Job Application, and Bank of America Interview Questionnaire, as well as my Capital One Application, Fifth Third Bank Application, Check Into Cash Application, or perhaps my PLS Financial Application or Citibank Application.

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Final Thoughts

The salary you can expect to earn will depend on the amount of experience you have and your clients. The starting salary for this role is typically around $45,000 per year. This can increase to around $55,000 annually after a few years.

Gaining special certification and skills can boost your earning potential considerably. The top earners in this field enjoy a salary of around $74,000 per year.

If you have business skills, you can establish your own company and enjoy a very healthy salary.

All the very best working as a Tax Auditor!

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