Law and order are crucial and fundamental components of any country, society, or community. Without laws and regulations, the world would be in chaos. Laws are essential in leading societies towards a common goal entailing everyone’s safety and well-being. Imagine everyone following a different rule and claiming it to be right. Everything will be in chaos, from road safety rules to business and other aspects. There will be no common ground among people to share. Laws and regulations are vital in running a business and keeping everything compliant with state and local rules. We all pay taxes, and if we lack tax payments, we can get charged under particular rules and regulations. Knowing about tax laws can help us in staying compliant with the rules.
What is tax law?
Tax laws entail a set of rules and regulations stipulating how, and when. How much does one have to pay in taxes to local, state, and federal authorities? It is a dynamic field that deals with domestic and international transactions happening through individual or business accounts. However, frequent modifications in local, state, and federal codes and the complexity of fiscal policy guiding such changes require taxation experts to stay up-to-date.
More than 4,680 modifications to the US tax law have been made since 2001, averaging more than once per day. Considering these changes, tax lawyers are opting for online llm programs to update their knowledge and keep up with the trends in taxation. In addition, these online programs allow tax lawyers to continue their practice without disruption and attend lectures anytime and anywhere.
The article aims to highlight the subspecialties that one can pursue as a career in taxation law.
1. Tax Attorney
With a degree in tax law, you can pursue a career as a tax attorney. A tax attorney represents their clients facing situations that involve business ownerships and lawsuits concerning the IRS (international revenue services). Tax attorneys also help business owners to set up their business or engage in international business. As a tax attorney, you will get to work with clients under investigation by the IRS and looking for an independent review of a US Tax Court case. The 2019 report of BLS states that a tax attorney’s median salary was 122,960 US per year.
2. Tax Consultant
Accounting firms are always seeking help when it comes to taxation and how to comply with taxation laws. With a degree in taxation law, you can pursue a career as a tax consultant to help accounting firms ensure that their accountants serve accurate information and services. A tax consultant researches tax laws to help clients mitigate tax liability, explain tax issues, and ensure compliance with the laws. A tax consultant’s job is to stay up to date on current changes happening in tax laws, planning, and other compliance codes. The Economic Research Institute reported the median pay of a tax consultant to be around 63,089 USD in March 2020.
3. Estate Planning Lawyer/Advisor
Taxation laws extend beyond accounting firms and businesses. For example, if you plan to buy a property, you need a lawyer’s expertise to help you with the taxes. If you have a great understanding of real estate, you can choose to be an estate planning lawyer/ advisor. You can help your clients to organize and protect their assets in case of a client’s death. You can also help your clients to draft wills and testaments or create living trusts.
4. Financial Product Advisor
If you believe that a degree of expertise in taxation law will bind you to taxes only, then here is what you need to know. You can also choose to be a financial product advisor with an LLM degree. As FPA, your job entails helping clients decide on investments, retirement, taxes, and other matters entailing planning, insurance, or mortgage. In addition, financial product advisors help their clients to analyze or assess the financial capital they should invest in savings, college finances, and other financial matters.
5. CFO/ Financial managers
The job of a CFO is to create strategies and policies for businesses and organizations, helping them meet their financial goals. Tax lawyers happen to be the best financial managers as they are aware of the tax laws and mandatory changes for any organization to follow and ensure compliance with it. From monitoring the tax dues of a company to helping mitigate the tax liabilities that can lead to potential financial damage for a company. The median salary as reported by BLS in 2019 for a CFO was 184,460 USD per year.
The legal complexities have paved the way for many career pathways concerning the law. From lawyers, judges, and mediators to paralegals, legal professionals are enjoying their careers. In the last several years, the legal profession has seen staggering growth. From career opportunities in international law to taxation laws, one can choose between different career pathways based on their expertise. Professionals considering a career in taxation law can work with internal clients or choose to be a taxation consultant with an adequate degree and certification. There will always be a need for a tax lawyer as long as there are taxes. We’ve all heard the saying about death and taxes. Tax is not completely immune to the economy’s ebb and flow, but it remains more stable.