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Taxation - Overview

Overview

Taxation programs prepare people to provide tax advice and services. Students learn about tax law and tax planning. They learn to fill out tax forms. They also learn about estates, capital gains and losses, and depreciation.

An old saying goes, Nothing is certain but death and taxes. And tax laws and tax forms seem to get more complicated every year. That's why there are a lot of job opportunities for people who are experts about taxation. It is possible to prepare for and enter this field at several different levels.

The most basic level of work is as a tax preparer. You interview people to help them fill out their tax forms. The work is seasonal, with most activity in the late winter. You can prepare for the work with home-study courses or adult education classes. In some states you may need to pass a licensing exam.

A tax preparer can represent clients at IRS audits. But to represent tax clients at the first level of the Federal Tax Court, you need to be an enrolled agent. You must acquire work experience as a tax preparer, get additional training, and pass a four-part exam given by the IRS. Then you need 24 to 30 hours of continuing education courses per year. To learn the laws and procedures you may enroll in a home-study course or adult education class.

If you are trained as a tax preparer or enrolled agent, you may also be able to use your knowledge to work in the payroll department of a business. Another possibility is working as a paralegal (legal assistant) specializing in taxation. But to perform this work you would be better prepared by a program in paralegal studies. (See the description of that program.)

To work at a higher level of expertise (and income), you may want to get a bachelor's degree in taxation. This represents four years of full-time work beyond high school. A few colleges offer a program in this field, often as a specialty within the accounting major. (See the description of the accounting and auditing program.) With an additional year of courses (perhaps a master's degree) and some accounting work experience you may qualify for the Certified Public Accountant exam. As a tax accountant you can advise individuals and businesses about tax issues.

For a high-level position you may want to study taxation at the postgraduate level. One route is to get a master of business administration (MBA) degree with a concentration in taxation. Another route is to get a specialized master's in taxation. About 60 universities offer one or both of these kinds of master's degrees. Master's programs usually require two years beyond the bachelor's. Often an internship is required between the first and second years.

You may also consider getting a law degree with a concentration in tax laws, either instead of or in addition to a master's degree. Law school typically requires three years beyond the bachelor's degree. After law school you must pass your state's bar exam to represent clients in court. About 40 law schools offer programs where you can specialize in taxation. (See the descriptions of the pre-law and law programs.)

Source: Illinois Career Information System (CIS) brought to you by Illinois Department of Employment Security.
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