25 Tax Analyst Interview Questions & Answers
Below is a list of our Tax Analyst interview questions. Click on any interview question to view our answer advice and answer examples. You may view 5 answer examples before our paywall loads. Afterwards, you'll be asked to upgrade to view the rest of our answers.
Table of Contents
Behavioral
1. Why did you want to become a tax analyst?
How to Answer
This question is a way for the interviewer to find out a little bit about what makes you a good fit for the job. Be honest and direct - don't give a phony answer that the interviewer will see through.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"Since I was young, I have always liked math and have been good with numbers. I took an accounting class in high school and really enjoyed it - the concepts came naturally to me. I also aspire to be a key contributor to an organization, and I know that the analyst role is visible to leadership."
Written by Brian Schuchart on January 28th, 2021
Behavioral
2. How would you handle working in an increasingly remote environment?
How to Answer
This is a question to gauge if you are disciplined enough to work from home. Be sure to touch on how you would stay focused and communicate with team members. Even after things return to normal, remote work may continue to be more common across many industries, including accounting.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"I have experience working remotely. At my internship, we were able to work from home on Fridays during the summer. I enjoyed working from home and was able to stay on task and communicate effectively with my team members. There were some ground rules I implemented, such as maintaining regular hours, keeping my morning routine as if I was going to the office, and scheduling breaks to take care of non-work related tasks. I also had a standing meeting with my manager and team members every morning to discuss priorities for the day."
Written by Brian Schuchart on January 28th, 2021
Behavioral
3. What do you do when you don't know the answer to something?
How to Answer
There is no shame in being stumped - it happens to everyone at all levels of an organization. This question is an opportunity to highlight your ability to be independent and resourceful.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"I have no problem seeking solutions to questions I encounter. If I am unsure about the accounting or tax treatment for a certain transaction, I can reach out to our external auditors for advice on the appropriate treatment. All tax regulations are also available online, so I can complete research as needed. If it's something technical, such as using a new Excel formula, I am good at researching online and following examples."
Written by Brian Schuchart on January 28th, 2021
Behavioral
4. Are you willing to work extra hours if needed during busier times?
How to Answer
The life of a tax analyst is tied to the month-end close calendar and tax filing deadlines, which could result in a schedule that is 'lumpy' and not a typical 9-5. A tax analyst should expect there to be some additional time worked during busier times and should highlight that they are flexible.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"Yes, I am willing to work extra hours as needed. I understand that the work required ramps up during month-end close, tax filings, and other busier times. I am happy to be flexible and work as needed to make sure the job gets done."
Written by Brian Schuchart on January 28th, 2021
Behavioral
5. What are some methods you use to self-review your work?
How to Answer
The interviewer is trying to evaluate your ability to check your own work and, as a result, save your manager precious time by catching mistakes before they reach his or her desk. Give specific examples of procedures you have implemented in previous roles to catch mistakes.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"Being able to self-review my work and catch mistakes is something I take very seriously. As a tax analyst, I'll be spending a lot of time in the details, which makes it difficult to catch errors. Given this, I implement checklists that require me to tie out balances, subtotal transactions and other checks before I move forward in the close process. In a way, I am auditing my work to catch any mistakes or errors. This not only saves me time in the long run, but also saves my manager time as there is less back and forth resolving issues."
Written by Brian Schuchart on January 28th, 2021
Behavioral
6. Are you a detail-oriented person?
How to Answer
The tax analyst position requires great attention to detail as the role is in charge of producing and maintaining meticulous financial records. It is expected that the analyst can catch mistakes before reporting is provided to leaders of the organization.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"Yes, I am extremely detail-oriented. Part of what makes me a great analyst is my organization skills and ability to self-review my work. I know that providing financial information containing errors creates doubt among leadership that the financial records are accurate. Therefore, I implement systems that allow me to check the details, such as monthly checklists and reviews."
Written by Brian Schuchart on January 28th, 2021
Behavioral
7. What have you done at your previous job to reduce costs or save time?
How to Answer
The interviewer wants to know if you have the ability to improve processes. Speak to a specific action you took that resulted in reduced costs, saved time, or better insights gained.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"My last role was accountant for a small, established company. However, my predecessor did not have established procedures in place and it sounded like he had made constant mistakes. One of the first things I did when I started was I made a monthly checklist that detailed all the steps I took during the monthly close. Included in these steps were checks I performed to self-review my work. The checklist served as a cover sheet that I would hand off to my manager so that she would know exactly what steps I completed. This led to increased efficiency, as we estimated it saved four to six hours per month in error corrections."
Written by Brian Schuchart on January 28th, 2021
Behavioral
8. What qualities or skills do you believe a good tax analyst should possess?
How to Answer
This question is a good opportunity to show you have an understanding of what qualities make a good tax professional. Some key areas to hit are ethics (honesty/integrity), an ability to interact with colleagues and clients (communication skills, people-person), an ability to limit mistakes (focused/attention to detail), and an ability to get to the correct answer (skeptical/inquisitive/problem solver).
Written by Brian Schuchart on January 28th, 2021
Answer Example
"First and foremost, I believe a tax analyst should be honest and have great integrity. Without this, it will be impossible to perform the role effectively. Next, the analyst should have the education and technical skills to perform the job. They should have exceptional people skills as they will be required to communicate effectively with colleagues, external auditors, and other parties. Finally, they should have an inquisitive mind and a keen attention to detail."
Written by Brian Schuchart on January 28th, 2021
Behavioral
9. What would you do if you discovered there were accounting transactions that were suspicious or questionable?
How to Answer
This is an opportunity to highlight your integrity and honesty. The high-level answer should be obvious - that the concern must be addressed immediately.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"If during my work I discovered a practice that I found questionable, I would immediately voice my concern to the Tax Manager. It is possible that I could be misinterpreting the situation. If not, my manager would provide good counsel on next steps to resolve the situation. The most important thing is to be honest and ethical - two character traits that I am proud to say I possess."
Written by Brian Schuchart on January 28th, 2021
Behavioral
10. The tax department interacts frequently with other departments. What are some of the ways that you can show professionalism when representing our department?
How to Answer
A tax analyst represents the tax department as a whole when they interact with other departments. Acting professional is not something that comes naturally to people new to the workforce. With this question, the interviewer is gauging your awareness of professionalism, respect, and cooperation.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"It is extremely important to display professionalism when we are interacting with other departments and external auditors. First and foremost, I know that I must look the part by adhering to the appropriate dress code. Secondly, I know I must act professionally. This means speaking respectfully to all personnel, whether it is the company's CFO or a personal assistant. I shouldn't take personal phone calls or play music loudly. As a general rule, I shouldn't do or say anything that would harm our department's reputation."
Written by Brian Schuchart on January 28th, 2021
Behavioral
11. How do you manage your manager? In other words, what steps do you take to make sure you get what you need from your boss and make both your lives easier?
How to Answer
Also known as 'managing up', 'managing your manager' is a soft skill that can be developed over time. It essentially means doing whatever is necessary to make your manager's job easier. Some clear-cut benefits of managing up include increased productivity and better working relationships between boss and employee.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"I am a firm believer in the benefits of managing my manager. At the end of the day, I want to make sure our work runs as smoothly as possible. One area I really focus on is communicating and prioritizing my workload on a regular basis. This ensures that I'm always working on the highest-priority items. Another thing that is crucial is understanding my manager's style. For example, do they like regular check-ins by email throughout the day, scheduled catch-up meetings, etc. Then I tailor my communication to their style."
Written by Brian Schuchart on January 28th, 2021
Behavioral
12. What is your experience with interacting with senior executives at various organizations?
How to Answer
A tax analyst will, at times, be expected to interact with senior leadership of an organization. Highlight that you not only have experience presenting in front of leadership, but also that you are comfortable doing it. Be specific with what you have presented.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"I have ample experience getting in front of leadership and presenting. In my previous role as staff accountant, I would meet with the Controller and CFO to discuss the monthly close. I always felt the need to prepare in advance for any questions that might arise and would often promptly follow-up on anything that developed during those meetings. Even though these were low risk conversations, the interactions gave me confidence at an early stage in my career."
Written by Brian Schuchart on January 28th, 2021
Technical
13. How do you keep up with the latest developments in tax rules and regulations?
How to Answer
This question is to see if you take the initiative to stay current on the latest tax accounting developments. If you are a CPA, talk about how you use mandatory continuing education requirements to stay up to date on the latest trends and regulations.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"I stay up to date in various ways. First, I subscribe to e-newsletters from the IRS to remain current on the latest rules and regulations. Additionally, since I am a CPA, I stay up to date with new standards for continuing education courses. I try to select courses that align nicely with the roles and responsibilities of my current position."
Written by Brian Schuchart on January 28th, 2021
Technical
14. What accounting softwares are you familiar with?
How to Answer
Speak specifically to the accounting systems you have used and some of the functions you performed. Many job descriptions specifically state which accounting software the company uses. In any event, make sure to highlight that you are quick to learn new software systems.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"In my last role, I used SAP to book journal entries and run queries. As an independent contractor, I also used Quickbooks to complete monthly bookkeeping for various clients. I used that software to book journal entries, complete bank reconciliations, run monthly reports and invoice customers. Since I have an underlying understanding of accounting, I am easily able to learn new software packages."
Written by Brian Schuchart on January 28th, 2021
Technical
15. What are some of the most common accepted methods of depreciation?
How to Answer
Depreciation expense is the recognition of the portion of a fixed asset that has been consumed in the current period. There are multiple accepted methods of depreciation, and the interviewer is testing whether you have knowledge of some of the most common methods.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"There are multiple methods for depreciating an asset. The most common method for financial reporting is the straight line method, where depreciation expense is recognized evenly over the life of the asset. Another common method is the declining balance method, where more expense is recognized earlier in the useful life of the asset than towards the end. The IRS allows for special depreciation methods, including Section 179 expense and half-year conventions."
Written by Brian Schuchart on January 28th, 2021
Technical
16. What is Section 179 Expense?
How to Answer
Section 179 Expense is a common IRS-approved method to recognize full depreciation of fixed assets in the year of purchase. There is a limit on the amount of equipment that qualifies for Section 179 in a given year (up to $1,050,000 in 2021). It is advisable to mention how Section 179 expense differs from straight-line depreciation.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"Section 179 Expense was instituted by the United States government to encourage companies to buy equipment and invigorate the economy. Section 179 allows a company to deduct the full purchase price of equipment in the year of purchase, as opposed to depreciating over the useful life of the asset as required by financial accounting standards. Section 179 is a nice option for companies that invest in themselves to reduce taxable income."
Written by Brian Schuchart on January 28th, 2021
Technical
17. How would you interact with our organization's external auditors?
How to Answer
An organization's tax department will often lean on external auditors for guidance and advice. Additionally, during their field testing, an auditor may request documentation relating to tax transactions.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"I understand that I will need to have a good working relationship with the organization's external auditors. They will be a good resource for tax treatment of unique transactions and other general advice. Additionally, they will likely be testing some of our transactions and I will need to provide them with my work papers."
Written by Brian Schuchart on January 28th, 2021
Technical
18. When do corporations typically pay federal taxes?
How to Answer
Companies that file Form 1120 are required to estimate their taxes and pay on the 15th day of the 4th, 6th, 9th and and 12th months of the tax year. There are some circumstances where these filing deadlines are adjusted, such as in 2020 with the coronavirus pandemic.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"Most public companies that file Form 1120 are required to estimate their federal tax and pay four times during the course of a year. For companies with 12/31 year-ends, the due dates are typically April 15th, June 15th, September 15th and December 15th."
Written by Brian Schuchart on January 28th, 2021
Technical
19. What are permanent and temporary tax differences?
How to Answer
Differences between financial (book) accounting and tax accounting are common. Permanent differences arise when there is a difference between book and tax that never goes away. Examples are fines or overdraft fees. Most tax codes don't allow for deduction for these items, but they can be recognized as an expense for book purposes. Temporary differences are differences between book and tax that eventually reverse or eliminate. Examples include depreciation, as most financial depreciation is straight line and tax codes allow for accelerated depreciation. This question gauges whether a candidate understands one of the fundamental concepts in tax accounting.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"Permanent and temporary tax differences are variances between financial net income and income as reflected on tax returns. Permanent differences arise when there are income and expense items that are allowed for financial reporting but not for tax purposes. Permanent differences never reverse or eliminate. Temporary differences are similar to permanent differences, except that they eventually reverse or eliminate."
Written by Brian Schuchart on January 28th, 2021
Technical
20. Have you obtained your CPA license?
How to Answer
Many, but not all, professionals in tax accounting have a CPA license. These days, many students are able to sit for the CPA exam before they graduate. Specifically, the Regulations section of the exam pertains to the tax profession.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"Becoming a CPA was a major goal for me in my career, as it helped me grow in the accounting profession. In my previous role in public accounting, I set a goal to pass all four parts of the exam in 18 months. I am proud to say I was able to do just that, and I'm looking forward to utilizing the knowledge I obtained in the next phase of my career. Specifically, the knowledge obtained from the Regulations portion of the exam will help me in my role as Tax Analyst."
Written by Brian Schuchart on January 28th, 2021
Technical
21. How would you go about calculating estimated taxes for the current year?
How to Answer
Like individuals, companies are required to pay taxes throughout the year. Most individuals, however, have taxes withheld from their paychecks and, if necessary, pay estimated taxes. Companies, on the other hand, need to pay estimated taxes each quarter as that is the only mechanism to pay taxes regularly. At the highest level, estimated taxes for a business are based on forecasted taxable income.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"Quarterly estimated tax payments are a necessary tool to make regular tax payments to the federal and state governments. In order to properly calculate estimated taxes, I would work with the accounting and business planning teams to develop a monthly forecast for the current year. Using this financial forecast, I would then make book-to-tax adjustments to arrive at taxable income. From there, I can calculate the estimated taxes owed. It is important to refresh this calculation each month so that the estimated taxes are always based off the latest information available."
Written by Brian Schuchart on January 28th, 2021
Technical
22. How are C-Corporations taxed differently than S-Corporations?
How to Answer
This question tests the knowledge of the differences between the two most common business structures. The two structures have many differences, but one of the biggest is taxation.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"The main difference between C-Corporations and S-Corporations is how they are taxed. C-Corporations pay taxes on the profits, and the owners also pay taxes on dividends received from the corporation. S-Corps are not taxed. Instead, the profit is taxed on the owners' personal income tax returns. Both taxation methodologies have their advantages and disadvantages."
Written by Brian Schuchart on January 28th, 2021
Technical
23. Are you proficient in Excel?
How to Answer
Excel proficiency is a must for not only a tax analyst, but any role in accounting. At a minimum, a tax analyst should be able to sort through large amounts of data and analyze that data using pivot tables.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"Yes, I am proficient in Excel. I have used Excel extensively throughout my time in school as well as in my previous role. For example, I used data sorting and filtering as well as pivot tables to organize large amounts of data. Additionally, I have experience using V-Lookups and H-Lookups to pull together analysis for our external auditors. I have even dipped my toes into data visualization software such as Tableau, but that is a skill I would like to continue to develop."
Written by Brian Schuchart on January 28th, 2021
Technical
24. What is a deferred tax liability?
How to Answer
A deferred tax liability is a tax that has been incurred, but is not yet paid. This is a common occurrence in tax accounting, and a liability must be reflected on a company's balance sheet to represent the future obligation.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"A deferred tax liability is an obligation to pay taxes in the future. It generally arises when a transaction or some other event occurs in the current period that will trigger taxes owed in a future period. When this occurs, a company must recognize the tax liability on their balance sheet as they would any other future obligation, such as accounts payable."
Written by Brian Schuchart on January 28th, 2021
Technical
25. What are examples of different types of taxes a company must pay?
How to Answer
This is a broad question to test the candidate's general knowledge of tax accounting. Be able to rattle some of these off, as a tax analyst will likely be responsible for calculating, tracking and/or remitting these taxes.
Written by Brian Schuchart on January 28th, 2021
Answer Example
"A company has several different types of taxes that they owe to various governmental entities. First, all for-profit companies pay federal taxes. Additionally, they owe state taxes in the states in which they do business. There may be local taxes owed to cities and municipalities, as well as tax rebates in some areas. Finally, many companies are subject to sales tax."
Written by Brian Schuchart on January 28th, 2021