Significant Points

• Tax examiners, collectors, and revenue agents work for Federal, State, and local governments.
• Many workers have a bachelor's degree, but relevant experience is important for many jobs.
• Employment is expected to grow as fast as the average, while retirements should create additional job openings.
• Competition will be greatest for positions with the Internal Revenue Service.

Nature of the Work

Taxes are one of the certainties of life, and as long as governments collect taxes, there will be jobs for tax examiners, collectors, and revenue agents. By reviewing tax returns, conducting audits, identifying taxes payable, and collecting overdue tax dollars, these workers ensure that governments obtain revenues from businesses and citizens.

Collectors, also called revenue officers in the IRS, deal with delinquent accounts. The process of collecting a delinquent account starts with the revenue agent or tax examiner sending a report to the taxpayer. If the taxpayer makes no effort to resolve the delinquent account, the case is assigned to a collector. When a collector takes a case, he or she first sends the taxpayer a notice. The collector then works with the taxpayer on how to settle the debt.

In cases in which taxpayers fail to file a tax return, Federal collectors may request that the IRS prepare the return on a taxpayer's behalf. In other instances, collectors are responsible for verifying claims that delinquent taxpayers cannot pay their taxes. They investigate these claims by researching court information on the status of liens, mortgages, or financial statements; locating assets through third parties, such as neighbors or local departments of motor vehicles; and requesting legal summonses for other records. Ultimately, collectors must decide whether the IRS should take a lien-a claim on an asset such as a bank account, real estate, or an automobile-to settle a debt. Collectors also have the discretion to garnish wages-that is, take a portion of earned wages-to collect taxes owed.

A big part of a collector's job at the Federal level is imposing and following up on delinquent taxpayers' payment deadlines. For each case file, collectors must maintain records, including contacts, telephone numbers, and actions taken.

Like tax examiners and revenue agents, collectors use computers to maintain files. Computer technology also gives collectors access to data to help them identify high-risk debtors-those who are unlikely to pay or are likely to flee. Collectors at the IRS usually work independently. However, they call on experts when tax examiners or revenue agents find fraudulent returns, or when the seizure of a property will involve complex legal steps.

At the State level, collectors decide whether to take action by reviewing tax returns filed in the State where they work. Collection work may be handled over the telephone or turned over to a collector who specializes in obtaining settlements. These collectors contact people directly and have the authority to issue subpoenas and request seizures of property. At the local levels, collectors have less power than their State and Federal counterparts. Although they can start the processes leading to the seizure of property and garnishment of wages, they must go through the local court system.

Work environment. Collectors work in clean, pleasant, and comfortable office settings. Depending upon work assignment, travel may be necessary. Revenue agents at both the Federal and State levels spend a significant portion of their time in the offices of private firms, accessing tax-related records. Some agents may be permanently stationed in the offices of large corporations with complicated tax structures. Agents at the local level usually work in city halls or municipal buildings. Collectors travel to local courthouses, county and municipal seats of government, businesses, and taxpayers' homes to look up records, search for assets, and settle delinquent accounts.

Stress can result from the need to work under a deadline. Collectors also must face the unpleasant task of confronting delinquent taxpayers.

Collectors generally work a 40-hour week, although some overtime might be needed during the tax season. State and local tax examiners, who may review sales, gasoline, and cigarette taxes instead of handling tax returns, may have a steadier workload year-round.

Training, Other Qualifications, and Advancement

Many collectors have a bachelor's degree. But relevant experience, or a combination of postsecondary education and experience, is sufficient qualification for many jobs. Specialized experience is sufficient to qualify for many jobs in State and local government.

Education and training. In the Federal Government, workers must have a bachelor's degree or a combination of some college education and related experience. After being hired by the IRS, employees can expect to attend several multiweek training seminars. In State and local governments, workers often have an associate degree, some college-level business classes and specialized experience, or a high school diploma and specialized experience.

For more advanced entry-level positions, applicants often must have a bachelor's degree. Candidates may sometimes qualify without a bachelor's degree, however, if they can demonstrate experience working with tax records, tax laws and regulations, documents, financial accounts, or similar records.

Specific education and training requirements vary by occupational specialty.

Collectors usually must have some combination of college education and experience in collections, management, customer service, or tax compliance, or as a loan officer or credit manager. A bachelor's degree is required for employment as a collector with the IRS. No additional experience is required, and experience may not be substituted for the degree. Degrees in business, finance, accounting, and criminal justice are good backgrounds.

Entry-level collectors receive formal and on-the-job training under an instructor's guidance before working independently. Collectors usually complete initial training by the end of their second year of service, but may receive advanced technical instruction as they gain seniority and take on more difficult cases. Also, collectors are encouraged to continue their professional education by attending meetings to exchange information about how changes in tax laws affect collection methods.

Other qualifications. Collectors work with confidential financial and personal information; therefore, trustworthiness is crucial for maintaining the confidentiality of individuals and businesses. Applicants for Federal Government jobs must submit to a background investigation.

Collectors need good interpersonal and communication skills because they deal directly with the public and because their reports are scrutinized when the tax agency must legally justify attempts to seize assets. They must be able to negotiate well and deal effectively with others in potentially confrontational situations.

Advancement. Advancement potential within Federal, State, and local agencies varies for collectors. For related jobs outside government, experienced workers can take a licensing exam administered by the Federal Government to become enrolled agents-nongovernment tax professionals authorized to represent taxpayers before the IRS.

Collectors who demonstrate leadership skills and a thorough knowledge of collection activities may advance to supervisory or managerial collector positions, in which they oversee the activities of other collectors. It is only these higher level supervisors and managers who may authorize the more serious actions against individuals and businesses. The more complex collection attempts which usually are directed at larger businesses are reserved for collectors at these higher levels.

Job Outlook

Employment is expected to grow as fast as the average, while retirements over the next 10 years should create additional job openings at all levels of government.

Employment change. Employment of tax examiners, collectors, and revenue agents is projected to grow 13 percent during the 2008-18 decade, which is considered as fast as the average. Demand for tax examiners, revenue agents, and tax collectors will stem from changes in government policy toward tax enforcement and from growth in the number of businesses.

Two factors should increase the demand for revenue agents and tax collectors-the Federal Government is expected to increase its tax enforcement efforts, and new technology and information sharing among tax agencies make it easier for agencies to pinpoint potential offenders, increasing the number of cases for audit and collection.

Job prospects. The large number of retirements expected over the next 10 years is expected to create many job openings at all levels of government. Both State and Federal tax agencies are continuing to focus enforcement on higher income taxpayers and businesses, which file more complicated tax returns. Because of this, workers with knowledge of accounting, tax laws, and experience working with complex tax issues will have the best opportunities.

Competition will be greatest for positions with the IRS. Opportunities at the Federal level will reflect the tightening or relaxation of budget constraints imposed on the IRS, the primary employer of these workers.

Employment at the State and local levels may fluctuate with the overall state of the economy. When the economy is contracting, State and local governments are likely to freeze hiring and lay off workers in response to budgetary constraints.