The following article discusses the career path of Tax Manager. Learn about how to become one, education requirements, job duties, traits and qualities, national salary outlook as well as top national employers of Tax Managers.
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Tax Manager Job Duties
Tax managers are responsible for reporting on taxes and ensuring they are compliant with all federal, state, and local tax laws for the organization. They must, therefore, prepare the company’s taxes and file them and make sure that they are accurate and complete, thereby minimizing the chances of an audit being conducted.
At the same time, a tax manager will need to find as many places as possible where deductions can be made, thereby ensuring the organization doesn’t pay more taxes than they need to.
Other responsibilities of a tax manager include focusing on mergers and acquisitions, as well as IPOs (internal public offerings). Their goal is to make sure that every element of these transactions is documented properly from the perspective of tax compliance. Hence, they may need to review and research current taxation laws and memoranda in order to make sure all information is complete and accurate.
Other job duties of a tax manager include:
- Overseeing the compiling and submission of tax returns of individuals, trusts, partnerships, and corporations to ensure they are compliant
- Line managing an organization’s accounting staff
- Taking part in tax research and planning activities
Where Tax Manager’s Work
According to the U.S. Bureau of Labor Statistics, there were 62,100 tax examiners and collectors, and revenue agents in 2016, a professional group that includes tax managers. The largest employers of these professionals were:
- Federal government: 43%
- State government, excluding education and hospitals: 39%
- Local government, excluding education and hospitals: 18%
How to Become a Tax Manager
A tax manager has to have a background in finance and an in-depth understanding of tax law and the taxation process. They must be able to communicate about this so that their clients, who do not have an understanding of tax law, can understand it. Hence, a bachelor’s degree in a financial field such as accounting with a tax law concentration is usually beneficial. A master’s degree is often preferred, and those with CFP (Certified Financial Planner), Enrolled Agent, or CPA (Certified Public Accountant) designations are in particularly high demand.
It is also common for a tax manager to be proficient in Microsoft Office and QuickBooks. So much so, in fact, that many obtain voluntary certifications in those areas. They must also have an in-depth understanding of various forms of accounting software, which they use in a detailed manner.
Tax Manager Education Requirements
A bachelor’s degree is required for someone to be a tax manager with a major in accounting, finance, or a relevant field. They are also expected to have experience in tax compliance, auditing, or accounting. To work for the Internal Revenue Service (IRS), they must also have worked in a relevant field for at least one year.
Master’s degrees are often preferred in areas relating to economics, business administration, or accounting. This provides them with more specialized experience in areas such as tax analysis, bookkeeping, or accounting. Some come from a credit management or baking background.
Training is also very important. As tax laws continuously change, a tax manager must remain up to date with their knowledge, focusing on both the tax code and on relevant enforcement procedures. It is common for employers to ask for a tax manager to be a CPA, CFP, or enrolled agent. This requires further education, often to master’s degree level.
Online Degree Option
For many aspiring accountants, studying online is possible. This is understandable because it means that they can work and study at the same time. For those looking into a master’s degree, this is a particularly viable option. Do make sure, however, that your degree program is properly accredited. This will tell you that the core curriculum meets or exceeds, the minimum standards. The Southern New Hampshire University, for instance, offers the Master of Accounting online as well as a number of other Accounting and Finance degree options.
Tax Manager Traits & Qualities
The most effective have the following traits to some degree or other:
- Strong analytical skills
- Excellent computer skills
- Detail oriented
- Good interpersonal skills
- Excellent organizational skills
- Math skills
- Strong communication skills, both oral and written
- Desire to learn
Minimum Tax Manager Education
Bachelor’s Degree
The national average salary estimate for Tax Manager was $107,133. This number is estimated from over 3,241,724 employees, users past and present job advertisements from Indeed.com. This equates to an hourly salary of $55.80 and monthly of $8,928.
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$43,000
$199,000
The following section lists Tax Manager salaries in each state around the country. The figures are based on the total number of job postings through Indeed.com. For example, Connecticut had the largest quoted salary of $123,564 while Montana had the smallest quoted salary of $66,111.
According to Indeed.com, the following states had employers looking to hire a Tax Manager. The quoted salary figure represents the average salary from all job postings by this employer.
| Employer Name | Location | Average Salary |
|---|---|---|
| NORTH STAR | Connecticut | $187,085 |
| Direct Hire – Full Time | Connecticut | $186,991 |
| True North Consultants | DC | $177,188 |
| Bertram & Associates | DC | $176,728 |
| Contemporary Staffing | Pennsylvania | $175,000 |
| Systematic business consulting | DC | $173,241 |
| The Forum Group | Connecticut | $165,641 |
| SSI Technical | Texas | $165,000 |
| Henderson Harbor Group | New Jersey | $158,408 |
| The Dubin Group | Pennsylvania | $156,567 |
| Pure Search | New York | $155,102 |
| USEReady (Recruiting on behalf of client) | New York | $155,000 |
| FYTE Recruitment | Massachusetts | $154,678 |
| One Search Consultants, LLC | Connecticut | $152,668 |
| RJS Associates Inc. | Connecticut | $150,000 |
| Harshwal & Company , LLP | New Mexico | $150,000 |
| JCJ, LLC | Pennsylvania | $150,000 |
| Alexander Bec | Connecticut | $149,722 |
Tax Manager Learn More
- Tax Manager- Federal Credits and Incentives – NABA
- Tax Manager, Employment | NABA
- Tax Accountant Salary
- Tax Analyst Salary
- Taxation Degree
- Accounting Certificate vs Degree
- Online Accounting Degree Programs
| Career Name | Average Salary |
|---|---|
| Data Warehouse Engineer | $111,007 |
| Business Intelligence Manager | $109,552 |
| Investment Manager | $108,746 |
| Director of Sales | $108,014 |
| Sales Director | $107,659 |
| Risk Manager | $103,743 |
| Technical Project Manager | $100,971 |
| Director of Finance | $99,996 |
| Finance Director | $99,963 |
| Director of Security | $99,822 |
