How to Become a Tax Consultant

Tax consultants provide tax-related guidance to organizations and individuals. They offer clients advice on tax savings and filing strategies and help them develop taxation plans, strategies, and processes.

A tax consultant’s responsibilities can overlap with those of tax preparers, tax managers, and tax accountants, but tax advisors specialize in guiding clients through complex tax situations. Their thorough understanding of local, state, and federal tax laws and regulations helps them navigate compliance and legal matters at various levels.

Explore how to become a tax consultant and what benefits come with the field.

Tax advisors can choose from several educational pathways to the profession. While the field has no mandatory requirements in general, many employers prefer candidates with at least some formal education in accounting.

Some of the most useful accounting training comes from undergraduate accounting programs, though business administration programs can also jumpstart your career. In either program, a concentration in taxation may be the ideal choice.

A graduate degree in accounting or business administration can improve your employment opportunities, particularly if you specialize in taxation or tax law. It might also boost your earning potential, as these degrees can lead to leadership positions.

The credentials required for taxation consultants depend on your employer and role. In general, the career has no mandatory certification or licensure requirements. However, if you plan to prepare and submit tax returns for your clients or employer, you need an IRS PTIN, which requires you to pass a suitability test. To represent clients in front of the IRS, you need an enrolled agent status or a CPA licensure.

To earn enrolled agent status, you need to pass the three-part IRS exam called the SEE. You then need to maintain your status with 72 hours of continuing education every three years.

For CPA licensure, the requirements vary by state, but you typically need a bachelor’s degree and 150 postsecondary credits with a focus on accounting coursework. CPAs also need to maintain and renew their licensure through continuing education, though the specifics depend on the state.

Technically, every accounting degree and accounting certification is optional in a field with no mandatory minimum requirements. However, tax consultants can enhance their qualifications with the accredited tax advisor (ATA) credential.

Offered by the Accreditation Council for Accountancy and Taxation (ACAT), the ATA recognizes tax professionals who have a solid grasp of the most complex tax planning and consulting issues and practices.

The ATA requires you to pass the three-hour, 100-question exam. You will need a minimum of three years of tax-related experience to sit for the exam. Maintaining the credential requires at least 30 hours of continuing education every year, including 28 hours in taxation and two hours in ethics.

The tax advisor profession has no strict experience requirements, but many employers value time spent on the job. You can gain relevant experience in an entry-level tax preparer or general accounting role. These positions can give you practical familiarity with tax laws and complex filings.

In some cases, education can take the place of experience, particularly a graduate degree in a relevant discipline. A master’s in accounting, for example, can prepare you for many situations and allow you to gain experience in accounting internships and practicums.

Tax advisor careers offer a strong occupational outlook and financial reward. Yet, they can also prove challenging and demanding, especially during tax season.

Here are some of the biggest pros and cons of being a tax advisor.

After you have the credentials and experience necessary for a tax consulting job, you can start searching for a new role through various channels.

You might advance into a position with your current employer or get referred to a role from a mentor or someone in your network. Industry conferences and professional organizations can also prove useful when trying to find a new position.

Consider looking through the following accounting- and tax-related job boards for open positions:

The experience you gain in tax consulting roles can prepare you for several upper management positions, such as financial manager or executive positions. The scope of these roles goes far beyond taxes, but expertise in tax law, planning, and consulting makes tax advisors strong management candidates.

Financial managers and C-suite professionals, such as chief financial officers (CFOs), oversee the overall financial health and activities of an organization. They supervise a team of financial professionals and monitor financial markets, risks, and opportunities. Financial managers present financial considerations to other managers and stakeholders when making organizational decisions.

Though not mandatory, CPA licensure and advanced accounting or finance degrees may help you secure a financial management role. According to Payscale, financial managers made $85,660, and CFOs made $149,590, as of August 2024.