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.

Tax examiners do similar work, whether they are employed at the Federal, State, or local government level. They review filed tax returns for accuracy and determine whether tax credits and deductions are allowed by law. Because many States assess individual income taxes based on the taxpayer's reported Federal adjusted gross income, tax examiners working for the Federal Government report any adjustments or corrections they make to the States. State tax examiners then determine whether the adjustments affect the taxpayer's State tax liability. At the local level, tax examiners often have additional duties, but an integral part of the work still includes the need to determine the factual basis for claims for refunds.

Tax examiners usually deal with the simplest tax returns-those filed by individual taxpayers with few deductions or those filed by small businesses. At the entry level, many tax examiners perform clerical duties, such as reviewing tax returns and entering them into a computer system for processing. If there is a problem, tax examiners may contact the taxpayer to resolve it.

Tax examiners also review returns for accuracy, checking taxpayers' math and making sure that the amounts that they report match those reported from other sources, such as employers and banks. In addition, examiners verify that Social Security numbers match names and that taxpayers have correctly interpreted the instructions on tax forms.

Much of a tax examiner's job involves making sure that tax credits and deductions claimed by taxpayers are legitimate. Tax examiners contact taxpayers by mail or telephone to address discrepancies and request supporting documentation. They may notify taxpayers of any overpayment or underpayment and either issue a refund or request further payment. If a taxpayer owes additional taxes, tax examiners adjust the total amount by assessing fees, interest, and penalties and notify the taxpayer of the total liability. Although most tax examiners deal with uncomplicated returns, some may work with more complex tax issues, such as pensions or business net operating losses.

Work environment. Tax examiners 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.

Tax examiners 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 tax examiners 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.

Tax examiners usually must have a bachelor's degree in accounting or a related discipline or a combination of education and full-time accounting, auditing, or tax compliance work. Tax examiner candidates at the IRS must have a bachelor's degree or one year of full-time specialized experience, which could include full-time work in accounting, bookkeeping, or tax analysis. After they are hired, tax examiners receive some formal training. In addition, annual employer-provided updates keep tax examiners current with changes in procedures and regulations.

Other qualifications. Tax examiners 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.

Advancement. Advancement potential within Federal, State, and local agencies varies for tax examiners. 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.

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.

The work of tax examiners is especially well suited to automation, adversely affecting demand for these workers in particular. In addition, more than 40 States and many local tax agencies contract out part of their tax collection functions to private-sector collection agencies in order to reduce costs, and this trend is likely to continue. The IRS outsourced some tax collection activities, but the agency is ending this practice.

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.