Tax managers work year-round to minimize their organizations’ audit risk. Duties and Responsibilities of a Tax Manager. They do this by building and maintaining tax strategies, preparing and filing their organization’s tax returns, and staying up to date on new tax legislation. Including the newest tax laws in their tax strategies helps tax managers minimize their organization’s audit risk and helps their organization not to overpay taxes by identifying every available tax deduction. Tax managers make sure their organization does not underpay its taxes due to a tax law change as well, which could lead to penalties or worse.
Tax managers also help facilitate organizational expansions, including initial public offerings and mergers and acquisitions. They assist by accurately documenting all transactions from a tax perspective and researching and reviewing current tax laws to ensure that the acquisition process is accurate and complete. Not having a tax manager present during the acquisition process could create record discrepancies that may take a significant amount of time to untangle, or could even result in tax fraud, accounting fraud or a future audit.
Those are just a few examples of what a tax manager does. Other responsibilities include overseeing and managing organizational audits by the respective tax authorities, acting as mentors or general supervisors to other accounting employees, ensuring the accuracy of the tax team’s work, and leading internal tax initiatives, such as audits or investigations into organizational issues that might spur tax challenges. As leaders of the tax teams, tax managers also assign tasks and report findings to executives.
Paying taxes is an essential part of business operations. It’s also a complex process requiring strict adherence to federal, state and local laws. Monitoring tax laws is critical to maintaining an organization’s bottom line. If payments are off, unexpected penalties and interest may occur, potentially triggering an audit, which could generate additional headaches. Complying with evolving laws in addition to operating a business can feel like a monumental task.
This is where a tax manager can play a critical role in their organization’s success and longevity, but a tax manager’s contributions may not be as immediately recognizable as those of controllers or accountants. What does a tax manager do, exactly? The tax manager’s role is primarily to ensure that an organization’s tax strategy complies with local, state and federal tax laws. Tax managers also hold a variety of tax-related responsibilities that work to minimize their organization’s audit risk. Without tax managers, businesses worldwide would struggle to operate.
Tax Manager Duties:
- Research and compile information necessary for income tax returns
- Prepare and file federal and state tax returns
- Review and approve tax returns
- Track and report federal and state tax liabilities
- Maintain tax records and files
- Track and report employee earnings
- Research and update client’s tax status
- Provide estimates and projections
- Oversee accounting functions
Tax Manager Responsibilities:
- Review tax returns, perform tax research, and perform tax audit work
- Discuss tax issues with lawyers, accountants and clients, and communicate with clients
- Prepare tax returns for income, losses, exemptions, and deductions
- Prepare tax documents to ensure compliance
- Prepare budget for tax filing
- Perform other related duties as assigned
