<p>Some people say major doesn't matter. Some say liberal arts are best. In any case, let's say that I am sure I want to specialize in tax law. What would you recommend as a major for this field of study? I was thinking of a business major. Thanks.</p>
<p>accounting would not hurt</p>
<p>If you major in accounting and then obtain your CPA and a law degree, you can practice tax law in an accounting firm or in a law firm. Accounting majors are often detail oriented and have good memories and problem solving skills. Law school, however, requires critical reading and precise writing skills. If you major in accounting, you may wish also to take courses requiring a lot of reading and writing.</p>
<p>If you don't wish to major in accounting, I would suggest you take at least some introductory accounting courses. Accounting is a "foreign language" but it is the language of business. Accounting firms won't be as interested in you without the CPA, but law firms won't care as much. Another potential employer is the IRS. After you work for "the enemy" (aka IRS) for a few years, you can then make an easier entrance into a tax career in the private sector.</p>
<p>If you would like to make a small fortune as a tax lawyer, here is one of several approaches. Major in accounting and get your CPA. Practice accounting and auditing for two years. Enter law school and take as many tax courses as you can. Join a law firm, but remain active in the local CPA association. Become the President of the local CPA organization and make sure all of its members know you are a CPA and a lawyer. There are a number of functions CPAs cannot perform and they often refer business to tax lawyers. If you are the President of the local CPA organization and a lawyer, guess who gets all the referrals? That's right, you will be filthy rich (unless of course we go to a national sales tax and eliminate the income tax)</p>
<p>I was thinking of accounting. Are there any other specific majors that would specifically help in the area of tax law? How is finance?</p>
<p>Also, thinkingoutloud, will I really be able to work at both the accounting firm and law firm at the same time?</p>
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will I really be able to work at both the accounting firm and law firm at the same time?
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I am not suggesting you work for an accounting firm and a law firm at the same time, but rather in sequence. In other words, become a CPA first and work for an accounting firm for a few short years. After that go to law school and then work for either a big accounting firm or for a law firm. Once you have both the CPA and a law degree, you can start printing money. </p>
<p>There are a lot of students who go into accounting and then quickly decide it ain't their cup of tea. This is often because they perceive accounting as illogical, arbitrary, and nit-picky. Although their perception is accurate, what they don't realize is that accounting is the language of business. When public companies report their financial status, they are supposed to be using the same standards. If you are buying or selling a business, there is no way to judge what the business is worth without accruate accounting. </p>
<p>If accounting is not for you, then finance would be an excellent next best thing. A lot of tax lawyers give legal opinions regarding the tax consequences of certain financial instruments such as bonds, derivatives, etc. Knowing about financial instruments, the effects of money supply, interest and opportunity costs may help you understand the things you are talking about when giving tax advice.</p>
<p>Thanks for that useful info, thinkingoutloud. One more thing: I also would like to know which workplace is better: Big Four or law firm if I have both the CPA and JD. I mean in terms of better hours/pay, etc. Thanks a lot for your advice.</p>
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One more thing: I also would like to know which workplace is better: Big Four or law firm if I have both the CPA and JD.
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There is no clear cut answer to this one. If you are comparing Big Four and big law firms, they are more similar than different. You will have to work many hours and demonstrate extreme talent as well as generate business for the firm in order to become a partner. (Partner is the old term, but it is the most accurate description of what you become -- a group of owners acting together. The new name can be Director or Principle). Statistically it is probably harder to become a partner in a Big Four than in a big law firm, but it really depends on what firms you are talking about. If you want more control over your hours and lifestyle, then a medium size law firm is probably better. But with more control over your hours and a smaller size law firm, there is usually lower income. This is because big accounting and big law firms are like the mob -- the lower guys (called associates) kick up to the partners. In other words, if an associate bills at $100 per hour, one third covers the cost of the associate, one third pays the firms overhead, and one third goes to the partner. (Obviously, the percentages and numbers can vary greatly). Big accounting and big law firms usually have more associates to feed the partners. </p>
<p>If I were you, I would base my decision of CPA vs. law firm on what clients I thought I would most like to serve. If all you want to deal with are large companies, then go with Big Four. If you want to deal with large companies, medium size companies and some wealthy small companies then go with a big law firm. If you want to deal with medium size companies and a lot of small business and wealthy individuals, then go with a medium size law firm. The reason I suggest looking at what clients you want to serve is because after 20 years the money won't be as important as how valuable your clients perceive your services.</p>