What is a Tax Auditor?

A tax auditor is a professional who evaluates

financial records to determine whether they
comply with the applicable laws. All tax
auditors apply the principles of accounting in
the course of their duty. They work to check
if companies, individuals, agencies and
organizations comply with the federal, state
and local tax laws.
Key Responsibilities
Tax auditors perform the following duties:

 Conduct internal audits to ensure compliance with tax regulations.

 Evaluate and analyze accounting systems and tax control units to reduce taxes.
 Provide training to staff on tax regulations and procedures.
 Maintain all required tax documents.
 Assist companies file tax and prepare for audits.
 Prepare tax audit reports.
 Offer recommendations on proper tax filing and reporting.


Types of Tax Auditors

Tax auditors can either be internal, external or government auditors. Internal auditors are
employed to conduct audits and perform other accounting functions within a company. They can help
identify fraud, tax errors and mismanagement of funds. External auditors are impartial third-parties.
They help their clients file tax forms and educate employees on tax advantages. Government auditors
are employed by the Internal Revenue Service (IRS). They conduct random audits for companies,
especially those suspected of tax evasion or fraud.

How to Become a Tax Auditor

Those who want to become tax auditors should undertake a bachelor’s degree course in
accounting. An accounting degree enables students to learn a variety of topics related to accounting,
including tax laws, fraud detection and auditing. Those who graduate with associate degrees can
also qualify for some entry-level jobs under the supervision of an experienced and licensed auditor.

Getting Started
To get started as an auditor, you will need a considerable amount of work experience, preferably two
to three years. You can apply for entry-level positions in government agencies like IRS and private
consulting firms. You can also get employed in a company as an internal auditor.

Apart from experience, you will need to acquire certain skills to enable you to work effectively and
improve your career prospects. You will need to be a critical thinker and be able to apply logic when
analyzing financial reports. You must also be good at math, have integrity and communicate well
with the employees and other stakeholders.