Accounting

Tax Analyst job description

A Tax Analyst prepares federal, state, and local tax returns, ensures compliance with IRS regulations, and conducts tax research to optimize strategies.

Published June 15, 2024Updated May 9, 20261585 likes

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Job brief

We are seeking a detail-oriented Tax Analyst to join our finance team and take ownership of our comprehensive tax compliance and planning initiatives. In this role, you will prepare complex corporate tax returns, conduct tax research to support business decisions, and ensure our organization remains compliant with ever-changing federal, state, and local tax regulations. You will work directly with our Controller and external tax advisors to optimize our tax position while maintaining meticulous documentation for potential audits. If you have a passion for tax law, enjoy problem-solving complex compliance issues, and want to make a direct impact on our bottom line, this position offers excellent growth opportunities.

Key highlights

Prepare federal, state, and local corporate income tax returns using professional software such as ProConnect Tax, Lacerte, or CCH Axcess
Research complex tax issues using RIA Checkpoint, BNA Bloomberg Tax, or Westlaw to support business transactions and compliance decisions
Calculate and document ASC 740 tax provisions including current and deferred tax assets and liabilities for financial reporting
Respond to IRS correspondence, state tax notices, and audit inquiries by preparing detailed position papers and supporting documentation

What is a Tax Analyst?

A Tax Analyst is a specialized accounting professional who focuses exclusively on tax compliance, planning, and research for individuals, corporations, or organizations. Working with tax preparation software such as ProConnect, Lacerte, or CCH Axcess, Tax Analysts navigate complex federal, state, and local tax codes to ensure accurate filings and identify opportunities for tax optimization. Their expertise in regulations like IRC Section 199A, ASC 740, and multi-state tax nexus requirements makes them essential for maintaining compliance while minimizing tax liabilities across diverse business operations.

What does a Tax Analyst do?

On a typical day, a Tax Analyst prepares quarterly estimated tax payments, researches tax law changes through resources like RIA Checkpoint or BNA Tax Management, and reviews corporate tax provisions for ASC 740 compliance. They analyze depreciation schedules, calculate tax credits such as R&D or renewable energy incentives, and work closely with external CPA firms during tax season to gather supporting documentation. Tax Analysts also respond to IRS and state tax authority notices, maintain detailed workpapers for audit defense, and collaborate with payroll teams to ensure proper tax withholdings and employment tax compliance across multiple jurisdictions.

Key responsibilities

Prepare federal, state, and local corporate income tax returns using professional software such as ProConnect Tax, Lacerte, or CCH Axcess
Research complex tax issues using RIA Checkpoint, BNA Bloomberg Tax, or Westlaw to support business transactions and compliance decisions
Calculate and document ASC 740 tax provisions including current and deferred tax assets and liabilities for financial reporting
Analyze multi-state tax nexus requirements and apportionment factors to ensure proper state income tax compliance
Respond to IRS correspondence, state tax notices, and audit inquiries by preparing detailed position papers and supporting documentation
Maintain depreciation schedules and calculate Section 179, bonus depreciation, and tax credit opportunities to optimize tax positions
Collaborate with payroll administrators to ensure accurate employment tax withholdings, Form 941 filings, and state unemployment tax compliance
Support quarterly tax planning meetings by preparing tax projections, estimated payment calculations, and cash flow impact analyses

Requirements and skills

Bachelor's degree in Accounting, Finance, or Taxation with coursework in federal income tax and business taxation principles
2+ years of experience preparing corporate tax returns and working with tax preparation software such as ProConnect, Lacerte, or UltraTax
Proficiency in tax research platforms including RIA Checkpoint, BNA Bloomberg Tax, or CCH AnswerConnect for complex compliance issues
Working knowledge of ASC 740 income tax accounting standards and experience preparing tax provisions for financial statement reporting
Understanding of multi-state tax compliance including nexus determination, apportionment formulas, and state-specific tax regulations
Advanced Excel skills including pivot tables, VLOOKUP functions, and financial modeling for tax planning and analysis
CPA certification or progress toward CPA licensure with emphasis on taxation (REG exam completion preferred)
Strong analytical abilities to interpret complex tax regulations and communicate tax implications to non-tax business stakeholders

FAQs

What does a Tax Analyst do on a daily basis?

A Tax Analyst spends their day preparing tax returns using software like ProConnect or CCH Axcess, researching complex tax regulations through platforms such as RIA Checkpoint, and analyzing financial data to ensure compliance with federal, state, and local tax requirements. They calculate tax provisions for financial reporting under ASC 740 standards, respond to tax authority notices, and collaborate with accounting teams to gather documentation for tax filings. During busy season, Tax Analysts focus heavily on completing corporate and partnership returns, while off-season work involves tax planning, research projects, and process improvements.

What skills and qualifications are needed to become a Tax Analyst?

A Tax Analyst typically needs a bachelor's degree in accounting or finance with strong coursework in taxation, plus 2-3 years of experience with tax preparation software and research tools. Essential technical skills include proficiency in professional tax software like Lacerte or UltraTax, tax research platforms such as RIA Checkpoint or BNA Bloomberg Tax, and advanced Excel capabilities for financial modeling and data analysis. Many employers prefer candidates who are CPA-eligible or have completed the REG section of the CPA exam, as this demonstrates solid knowledge of tax regulations and compliance requirements.

Who does a Tax Analyst work with in their role?

A Tax Analyst collaborates closely with Controllers and CFOs on tax planning strategies and compliance matters, works with external CPA firms and tax attorneys during complex transactions or audits, and partners with payroll administrators to ensure proper employment tax compliance. They regularly interface with business unit managers to gather information for tax returns and credits, coordinate with AP/AR teams on tax-related vendor payments and customer exemption certificates, and communicate with IRS agents and state tax authorities during examinations or correspondence.

What is the career path and salary range for a Tax Analyst?

Tax Analysts typically start with salaries ranging from $50,000-$65,000 and can advance to Senior Tax Analyst ($65,000-$80,000), Tax Manager ($80,000-$110,000), or Tax Director roles ($110,000+) depending on experience, CPA certification, and company size. Career progression often involves increasing responsibility for complex compliance issues, tax planning initiatives, and team leadership. Many Tax Analysts also transition to public accounting firms as tax associates or seniors, pursue specialized roles in international tax or M&A tax, or move into broader finance leadership positions where tax expertise provides significant value.