Occupation Profile for Tax Examiners, Collectors, and Revenue Agents
Determine tax liability or collect taxes from individuals or business firms according to prescribed laws and regulations.
Signficant Points
- Tax examiners, collectors, and revenue agents work for Federal, State, and local governments.
- Employment is expected to have little or no change, but the large number of retirements over the next 10 years should create many job openings.
- Competition will be greatest for positions with the Internal Revenue Service.
Earnings
In May 2006, median annual earnings for all tax examiners, collectors, and revenue agents were $45,620. The middle 50 percent earned between $34,840 and $62,530. The bottom 10 percent earned less than $27,290, and the top 10 percent earned more than $81,890. However, median earnings vary considerably, depending on the level of government. At the Federal level, May 2006 median annual earnings for tax examiners were $52,630; at the State level, they were $44,110; and at the local level, they were $33,120.
Earnings also vary by occupational specialty. For example, in the Federal Government in 2006, tax examiners earned an average of $38,290, revenue agents earned $82,204, and tax specialists earned $55,100.
IRS employees receive family, vacation, and sick leave. Full-time permanent IRS employees are offered tax deferred retirement savings and investment plans with employer matching contributions, health insurance, and life insurance.
Job Outlook
Little or no change in employment is expected, but the large number of retirements expected over the next 10 years should create many job openings at all levels of government.
Employment change. Employment of tax examiners, collectors, and revenue agents is projected to grow 2 percent during the 2006-16 decade, which is considered little or no change. 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.
The Federal Government is expected to increase its tax enforcement efforts. Also, 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. These two factors should increase the demand for revenue agents and tax collectors.
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 their tax collection functions to private-sector collection agencies in order to reduce costs, and this trend is likely to continue. The IRS has begun outsourcing some tax collection, but it is unclear whether the agency will continue or expand this practice. If IRS outsourcing continues, it will dampen growth in employment of revenue officers but is not expected to affect employment of revenue agents.
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 turning their enforcement focus to higher income taxpayers and businesses, which file more complicated tax returns. Because of this, workers with knowledge of 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.
Employment
In 2006, tax examiners, revenue agents, and collectors held about 81,000 jobs at all levels of government.
About 44 percent worked for the Federal Government, 37 percent for State governments, and the remainder for local governments. In the IRS, tax examiners and revenue agents predominate because of the need to examine or audit tax returns. Collectors make up a smaller proportion, because most disputed tax liabilities do not require enforced collection.