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.

Revenue agents specialize in tax-related accounting work for the U.S. Internal Revenue Service (IRS) and for equivalent agencies in State and local governments. Like tax examiners, they audit returns for accuracy. However, revenue agents handle complicated income, sales, and excise tax returns of businesses and large corporations. As a result, their work differs in a number of ways from that of tax examiners.

Entry-level Federal revenue agents usually audit tax returns of small businesses whose market specializations are similar. As they develop expertise in an industry, such as construction, retail sales, or finance, insurance, and real estate, revenue agents work with tax returns of large corporations.

Many experienced revenue agents specialize; for example, they may focus exclusively on multinational businesses. But all revenue agents working for the Federal Government must keep abreast of the lengthy, complex, and frequently changing tax code. Computer technology has simplified the research process, allowing revenue agents Internet access to relevant legal bulletins, IRS notices, and tax-related court decisions. Revenue agents also use computers to analyze data and identify trends that help pinpoint tax offenders.

At the State level, revenue agents have duties similar to those of their counterparts in the Federal Government. State revenue agents use revenue adjustment reports forwarded by the IRS to determine whether adjustments made by Federal revenue agents affect a taxpayer's taxable income in the eyes of the States. In addition, State agents consider the sales and income taxes for their own States.

At the local level, revenue agents have varying titles and duties, but they still perform field audits or office audits of financial records for business firms. In some cases, local revenue agents also examine financial records of individuals. These local agents, like their State counterparts, rely on the information contained in Federal tax returns. However, local agents also must be knowledgeable enough to apply local tax laws regarding income, utility fees, or school taxes.

Work environment. Revenue agents 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.

Revenue agents 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 revenue agents 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.

Revenue agents usually must have a bachelor's degree in accounting, business administration, economics, or a related discipline or a combination of education and full-time business administration, accounting, or auditing work. Revenue agents with the IRS must have either a bachelor's degree or 30 semester hours of accounting coursework along with specialized experience. Specialized experience includes full-time work in accounting, bookkeeping, or tax analysis.

Other qualifications. Tax examiners, collectors, and revenue agents 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.

Revenue agents need strong analytical, organizational, and time management skills. They also must be able to work independently, because they spend so much time away from their home office, and they must keep current with changes in the tax code and laws. Revenue agents that travel need a valid driver's license to perform their duties.

Advancement. Advancement potential within Federal, State, and local agencies varies for revenue agents. 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.

Newly hired revenue agents expand their accounting knowledge and remain up to date by consulting auditing manuals and other sources for detailed information about individual industries. Employers also continually offer training in new auditing techniques and tax-related issues and court decisions. As revenue agents gain knowledge and experience, they may specialize in an industry, work with large corporations, and cover increasingly complex tax returns. Some revenue agent advancement specialties involve assisting in criminal investigations, auditing the books of suspected criminals, working with grand juries to help secure indictments, or becoming an international agent.

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.