Want to know who is a tax lawyer: what do tax lawyers do and how much does a tax lawyer make? Here’s the average tax lawyer salary.
Over the years, the law industry has continuously experienced a reasonable amount of growth. And this has helped to increase the tax lawyer salary because when it comes to the highest-paid attorneys you’ll always find a tax lawyer among the top five.
Since more businesses and non-profit organizations are being established daily, the Bureau of Labor Statistics (BLS) predicts a 6% increase in job creation for tax attorneys between now and 2028, because they help organizations and individuals in understanding how to manage tax laws and make sound judgments.
As a result, the demand for tax lawyers will continue to rise. If you’re considering a career as a tax lawyer but aren’t sure if you’re making the right decision and you want to know more about tax lawyer salary, this piece will answer all of your questions regarding tax lawyer salary as well as how you can become a professional tax attorney.
In this article, we shall be looking at the skills and education needed to become a tax lawyer, the process of becoming one, and the tax lawyer’s salary.
Who Is A Tax Lawyer?
Tax lawyers are experts who use their extensive knowledge of federal and state tax laws to assist individuals, businesses, and nonprofit organizations in understanding how to comply with the tax law.
Tax attorneys may be involved in tax-related operations such as forming or reorganizing business companies and assisting with mergers and acquisitions and this is why tax lawyer salary will usually be high.
They demonstrate to taxpayers how the law may affect them and assist in developing solutions to reduce taxes.
What Do Tax Lawyers Do?
As previously said, tax lawyers assist clients in navigating tax regulations to make the best business decisions possible. Before we delve into tax lawyer salary let’s look at some basic things you need to know about the profession. The following is a list of some of the responsibilities and services that tax attorneys perform regularly:
Tax lawyers assist clients with tax-related issues such as the formation or restructuring of business entities and mergers and acquisitions.
A tax lawyer assists businesses in completing corporate tax filings and reviews finished forms.
Tax attorneys also offer advice and legal assistance to clients who are being audited or facing penalties or legal action due to tax payments.
A tax lawyer helps clients navigate the complexities of tax law so that they can make the best financial and legal decisions possible.
Tax attorneys assist businesses in filing for bankruptcy or contesting an IRS audit.
Finally, tax attorneys are frequently called upon to examine various companies or investment plans and offer a prediction of tax loads or taxable income. That is why tax lawyer salary will continue to see an uptrend.
While you’re here, you may want to check out How Much Does A Tax Lawyer Cost in 2022
Is Becoming A Tax Attorney Worth It?
Tax lawyer salary will continue to increase as things roll by. This is why the Bureau of Labor Statistics (BLS) predicts a 6% increase in job opportunities for tax lawyers between now and 2028. Becoming a tax attorney is a lucrative profession.
The following are some of the reasons why you might consider pursuing this profitable field of law in law school:
1. Attractive Pay
Although where you practice will have a significant impact on your earnings. Working for a larger company or in a city will greatly increase your compensation. Tax attorneys expect to earn a lot of money daily.
2. Stability
Because people will continue to pay taxes, there will always be a demand for tax law professionals. Your services will be in high demand all year, and “the higher the demand for their services, the higher the rise in tax lawyer salary.”
3. Numerous Job Options
Because everyone is subject to tax law, tax attorneys can find work in almost any field. Tax lawyers can work in legal companies, accounting firms, enterprises, and the federal and state governments making it an interesting profession to pursue.
4. You Can Make Impact
Taxes can be complicated at times, and your advice can help businesses stay afloat or a family’s finances intact. You may even work for a charitable group, supporting their mission administratively.
5. Growth Opportunities
The tax law is difficult to understand, and there are always new rules to keep up with. So, if you appreciate being an expert at problem-solving and are naturally curious about taxes, then chances are that you could enjoy a career as a tax lawyer.
Finally, you can establish a name for yourself in the industry by publishing journals and presenting at conferences or other professional events.
From the various reasons, you can see that there are high odds that tax lawyer salary will not decrease and their demand will continue to surge. So if you’re passionate about the law sector, then taking a career as a tax lawyer may be a good choice.
What Are the Skills Required to Become a Tax Lawyer?
Since it’s now clear that the tax lawyer’s salary will continue to rise, and pursuing a career as a tax attorney is not a bad idea, let’s go over the many skills you’ll need to become a tax lawyer.
Tax attorneys must be well-versed in federal and state tax laws to appropriately counsel clients on how to take advantage of tax credits, communicate with the Internal Revenue Service (IRS), and practice in tax court.
They must also be familiar with business and financial strategies. The following skills are required to succeed as a tax lawyer:
1. Accounting and Math
These skills are often acquired before entering law school through undergraduate math or accounting courses.
2. Communication
Despite the intricacies of the tax code, attorneys must be able to explain it to their clients in basic, understandable terms to assist them in making decisions. Attorneys must enhance their ability to communicate and talk clearly both written and verbal.
3. Critical Thinking And Analysis
Tax attorneys must be able to understand tax regulations and correctly assess and apply them to their clients’ cases.
4. Research
The tax code constantly changes, and attorneys must have great research skills to give their clients up-to-date guidance.
Also, you may want to know How Much Does A Tax Lawyer Cost in 2022
How Much Does A Tax Lawyer Make?
Several criteria, such as an attorney’s work experience, location, degree, and certification, may influence a tax lawyer salary. According to the BLS, the average annual compensation of a tax lawyer is $120,900. Salaries in the legal profession range from $59,000 to $200,000.
Now that you have an idea of the tax lawyer salary, its advantages, and the skills you need to become one, this post will not be complete if we didn’t tell you how to become a licensed tax lawyer, so here is the step by step guide on how you can become a tax attorney.
How To Become A Tax Lawyer
To become a professional tax lawyer, you must complete the following processes:
Step 1: Complete a bachelor’s degree program
When considering how to become a tax lawyer, the first thing to consider is obtaining a bachelor’s degree. This is because the majority of law schools demand that students complete a bachelor’s degree program before applying for admission. Typically, this takes four years to complete.
Aspiring income tax lawyers can consider finishing a bachelor’s degree program in accounting that includes a curriculum addressing basic corporate tax concerns to gain a foundation in accounting, tax legislation, and tax rules.
Step 2: Take the law school admissions test
The significant step in your preparation for a future as a tax lawyer is to take the law school admissions test. The test will assess your critical thinking, analytical reasoning, and reading abilities. There are various parts of multiple-choice questions on the exam. This test should be taken seriously.
Step 3: Research and apply to American Bar Association-accredited law schools (ABA)
This phase, which requires research, school visits, and completed applications, could take up to a year to complete. When considering where to apply and attend, consider fees, financial aid, graduation and hiring rates, location, school size, and culture.
Step 4: Complete a summer internship with a tax law company
After your first year of law school, apply for a summer internship with a tax law firm to get significant experience and improve your chances of landing a job after graduation.
Step 5: Complete your Juris Doctor degree (JD)
This degree takes three years on average to complete.
Step 6: Fill out a job application
Companies and law firms typically conduct interviews with law students in their last year of study. Some companies will only recruit students or new graduates who have passed the bar exam. Tax attorneys frequently specialize in one or more areas, such as business taxation, corporate taxation, inheritance and gift taxation, finance, international taxation, federal taxation, or successions.
Step 7: Study for and take the state bar exam
Some states have their requirements so you may need to take the bar exam for the state you want to work. This exam consists of both multiple-choice and essay portions and it usually lasts for about 2-3 days.
Step 8: Obtain a state-issued certificate
Although completing this step is not an obligation toward becoming a legal tax lawyer, possessing these credentials may open up more job opportunities with greater pay. State certification or a master’s degree in tax law, which can take up to five years to accomplish, are both good options.
FAQs How Much Does A Tax Lawyer Make?
Tax lawyers are professionals who help people, businesses, and nonprofit organizations understand and comply with tax laws by drawing on their comprehensive knowledge of federal and state tax rules and regulations.
The following is a list of skills that are essential to becoming a successful tax attorney:
- Attention to the details.
- Skills in Accounting and Mathematical Analysis
- Ability to reason logically and conduct legal and factual research
- Ability to Write
- Abilities to Collaborate
- Excellent verbal and written communication skills.
- Comprehensive understanding of all important federal laws
Here are the following education requirements that will be needed to start practicing as a tax lawyer:
- Bachelor’s Degree
- Law school Admissions Test
- Summer Internship
- Juris Doctor Law Degree
- MRPE
- Bar Examination
The cities with high pay tax lawyer salaries are as follows:
- Columbia – Annual Mean Wage: $190,600
- California – Annual Mean Wage: $170,590
- New York – Annual Mean Wage: $167,110
- Massachusetts – Annual Mean Wage: $165,600
- Connecticut – Annual Mean Wage: $152,700
The following are some of the highest-paid lawyers:
- Medical Attorneys – Average $138,430
- Intellectual Property Lawyers – Average $128,900
- Trial Attorneys – Average $97,160
- Tax Attorneys – Average $101,200
- Corporate Lawyers – $116,360.
Conclusion
Tax lawyers help clients with several tax-related duties, including business formation and reorganization and mergers and acquisitions. Tax lawyers are in high demand. Therefore it’s a worthwhile profession to pursue.
You will not only make a lot of money in this field, but you will also have the opportunity to help others by advising them on how to handle their taxes. You’ll have the opportunity to work with a wide range of people and industries, including small enterprises, large corporations, and individuals.
Tax lawyers will always be in demand as long as taxes are paid. As a result, a tax lawyer’s salary may be enhanced as well. We hope this article has shown you what it takes to become a tax lawyer and the tax lawyer’s salary.
Reference
- www.accounting.com – How Much Does A Tax Lawyer Earn.
- https://www.nesl.edu – 9 Reasons Why You Should Study Tax Law
- https://www.payscale.com – Tax Attorney Salary
- https://www.accounting.com – How To Become A Tax Lawyer
- https://bestaccreditedcolleges.org – How To Become A Tax Lawyer
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