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 in more complex tax areas, such as pensions or business net operating losses.
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 larger 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 are increasingly using 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.
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 on the basis of their own States' tax returns. 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. Tax examiners, collectors, and revenue agents work in clean, pleasant, and comfortable office settings. Sometimes travel is 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 in checking returns and evaluating taxpayer claims. Collectors also must face the unpleasant task of confronting delinquent taxpayers.
Tax examiners, collectors, and 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.
| 1. | Collect taxes from individuals or businesses according to prescribed laws and regulations. |
| 2. | Maintain knowledge of tax code changes, and of accounting procedures and theory to properly evaluate financial information. |
| 3. | Maintain records for each case, including contacts, telephone numbers, and actions taken. |
| 4. | Confer with taxpayers or their representatives to discuss the issues, laws, and regulations involved in returns, and to resolve problems with returns. |
| 5. | Contact taxpayers by mail or telephone to address discrepancies and to request supporting documentation. |
| 6. | Send notices to taxpayers when accounts are delinquent. |
| 7. | Notify taxpayers of any overpayment or underpayment, and either issue a refund or request further payment. |
| 8. | Conduct independent field audits and investigations of income tax returns to verify information or to amend tax liabilities. |
| 9. | Review filed tax returns to determine whether claimed tax credits and deductions are allowed by law. |
| 10. | Review selected tax returns to determine the nature and extent of audits to be performed on them. |
| 11. | Enter tax return information into computers for processing. |
| 12. | Examine accounting systems and records to determine whether accounting methods used were appropriate and in compliance with statutory provisions. |
| 13. | Process individual and corporate income tax returns, and sales and excise tax returns. |
| 14. | Impose payment deadlines on delinquent taxpayers and monitor payments to ensure that deadlines are met. |
| 15. | Check tax forms to verify that names and taxpayer identification numbers are correct, that computations have been performed correctly, or that amounts match those on supporting documentation. |
| 16. | Examine and analyze tax assets and liabilities to determine resolution of delinquent tax problems. |
| 17. | Recommend criminal prosecutions or civil penalties. |
| 18. | Determine appropriate methods of debt settlement, such as offers of compromise, wage garnishment, or seizure and sale of property. |
| 19. | Secure a taxpayer's agreement to discharge a tax assessment, or submit contested determinations to other administrative or judicial conferees for appeals hearings. |
| 20. | Prepare briefs, and assist in searching and seizing records to prepare charges and documentation for court cases. |
| 21. | Direct service of legal documents, such as subpoenas, warrants, notices of assessment and garnishments. |
| 22. | Request that the state or federal revenue service prepare a return on a taxpayer's behalf in cases where taxes have not been filed. |
| 23. | Investigate claims of inability to pay taxes by researching court information for the status of liens, mortgages, or financial statements, or by locating assets through third parties. |
| 24. | Install systems of recording costs or other financial and budgetary data or provide advice on such systems, based on examination of current financial records. |
| 25. | Participate in informal appeals hearings on contested cases from other agents. |
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