The Internal Revenue Service (IRS) is an important department within the United States government, also known as the IRS. This name and its initials aren’t very fondly thought of, unless you have a bachelor’s degree in accounting and are interested in a career as a tax preparer, Enrolled Agent, IRS auditor, or another similar roll within the accounting profession. As long as you have your accounting degree, a degree in a related field from an accredited school, or it’s in progress, you’re likely to be able to find a job with the IRS, though you'll likely only have access to entry-level positions. But, you will probably also need your certified public accountant (CPA) certificate or training as an enrolled agent if you want to gain access to work as an IRS auditor or a higher-level position.
Within the mission of the IRS, it works to provide help to taxpayers who comply with the law, taking care of any issues they may have with their individual tax returns and answering their general questions about tax planning. The agency also targets those taxpayers who try to cheat on their taxes owed, ensuring that they will eventually pay what they owe on their account.
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What is the Internal Revenue Service (IRS)?
The IRS is the Internal Revenue Service, a government bureau contained within the federal Department of the Treasury. This is the agency that collects your federal taxes. Three divisions inside the IRS take care of three different populations of taxpayers. The first is the Small Business and Self-Employed Division, or SB/SE. It’s pretty self-explanatory. This is the office that will receive the tax returns from the self-employed and small-business owners of the U.S.
The second division is the Tax-Exempt and Government Entities Division, or the TE/GE. This area ensures that every tax-exempt organization and government entity is following current tax laws. The work is exacting and they offer assistance and information where needed.
The Large Business and International (LB&I) Division handles tax documents from large and international businesses. Staff process complex forms and ensure compliance with tax laws, requiring a thorough understanding of government requirements.
Internal revenue agents are auditors who review tax returns in detail, visiting locations like homes or businesses to verify submitted documents. They ensure taxpayers have been honest in their filings. These are entry-level positions, where agents can specialize in specific areas of tax law or work as generalists within the IRS.
Because the IRS is contained within the Treasury Department, it’s vitally important that the work the IRS does is accurate. The Treasury and the entire government rely heavily on every tax dollar that is collected and that’s why, as taxpayers, we are expected to honestly report every source of income.
What Do These Specialists Do?
An IRS (Internal Revenue Service) agent is a federal employee responsible for enforcing U.S. tax laws and ensuring compliance with tax regulations. Their duties include auditing tax returns, investigating potential cases of tax fraud or evasion, and assisting taxpayers with understanding and resolving complex tax issues.
IRS agents can specialize in various areas, such as field audits, collections, or criminal investigations. Revenue agents primarily examine tax returns for accuracy, while special agents focus on criminal investigations involving financial crimes. They work closely with other government agencies and legal entities to build cases and enforce tax laws.
By ensuring individuals and businesses meet their tax obligations, IRS agents play a critical role in maintaining the integrity of the federal tax system.
Jobs with the IRS Explained
Average Tax Examiner, Collector, or Revenue Agent Salary: $50,000
Working for the IRS as a professional requires that you hold a bachelor’s degree in accounting, or a degree in a similar field with plenty of coursework in accounting. If you want to move into a management role, then earning graduate level knowledge and/or an advanced degree will improve your chances.
| Entry Level | Mid Career | Late Career |
|---|---|---|
| $36,600 | $50,900 | $61,900 |
College graduates with accounting and legal degrees can apply for a position as an appeals officer or an artificial intelligence analyst attorney. For those applicants with skills or a degree in computer science, openings for computer specialists or information technology specialists may also be available.
There’s also the expected positions for IRS agents, internal revenue officer, and mathematical statisticians. Every one of these requires that you earn a related college degree as a student.
Analyst positions involve examining data closely, whether as a program evaluation, risk, operations research, or policy analyst. You’ll focus on important details and write detailed reports that help supervisors make decisions about tax policy changes.
Compliance officers and tax examiners audit selected tax returns and must hold specific certifications before being hired. They verify taxpayer submissions, identifying errors, omissions, or attempts to conceal income. They are responsible for acting on all findings, even if mistakes were unintentional.
If a taxpayer has experienced an event that has made it impossible to earn an income or pay any taxes that they do owe, they can ask for temporary relief from filing their taxes. They will have to show proof that the disaster has seriously impacted their life, including their ability to file and/or pay their taxes.
The work environment for these agents (sometimes credentialed as an Enrolled Agent if they offer a taxpayer advocate service), tax collectors, and each tax preparer is most often inside the offices of federal, state, and local governments. If they are working on a tax audit, they may be working in the field for a time in whatever state or precinct where they are needed. Otherwise, they will be working inside their office as IRS employees.
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Education Requirements to Becoming an Internal Revenue Agent
The IRS has established basic requirements for internal revenue workers, assuring tax compliance in accordance with the tax code and all kinds of tax forms. This includes educational requirements. Every revenue agent is required to complete a B.S. accounting degree as students at a four-year university. These courses are supposed to include upper-level classwork that every junior and senior takes before graduating.
The coursework in accounting has to include principles of accounting, cost accounting, auditing and both intermediate and advanced accounting.
Completed introductory courses should include introduction to accounting 1 and II, introduction to financial accounting, principles of accounting 1 and II, introduction to managerial accounting, and principles of financial accounting.
Examples of intermediate accounting include financial accounting, intermediate accounting 1, II and III and introduction to financial reporting.
Don’t forget about cost accounting courses. You should have taken cost accounting, managerial/cost accounting, managerial accounting and principles of managerial accounting.
Advanced accounting includes courses in government and non-profit accounting, international accounting, financial reporting, consolidations, mergers, equity issues, and advanced financial accounting. Topics cover financial accounting III, government entities, institutional accounting, and specialized areas like nonprofit organizations and international settings.
If you apply to work as an auditor, you should have taken classes in introduction to auditing, auditing and control, auditing theory and practice, and assurance services.
For an entry-level revenue agent, advancing within the IRS requires a master’s degree or equivalent accounting experience, and often a CPA license. To earn the CPA, you'll need to pass all four sections of the Uniform CPA exam. The job is mentally demanding, requiring the right education and skills to succeed.
What are the Potential Certifications Available?
Before you first apply for a position at the IRS, take the certification exams for the accounting role you’re most interested in or qualified for.
- CPA Certification
Certified Public Accountants (CPA) should pass the Uniform CPA Exam and obtain their main certification, as well as keep up with any necessary continuing education.
- EA Certification
Enrolled agents are licensed by the IRS. Before beginning to work as an IRS auditor, they are supposed to take a three-part Special Enrollment exam that allows them to show their knowledge of individual and business client tax preparation, financial planning, and client representation. Every three years, they have to submit proof that they have completed 72 hours of study in a continuing education course with an acceptable finishing score. - Tax Attorney Certification
Tax attorneys have to pass the state bar in their state or be licensed by their state’s courts in order to have access to these positions. They should hold their law degree, earned from an accredited school, and keep up with continuing education hours. They should have a high level of personal and professional character.
Certified public accountants, enrolled agents, and tax attorneys should remember that they have unlimited representation rights. This means they have the training to represent clients on any tax matters that involve tax payment and collection issues, audits, and appeals of IRS decisions. As long as they have an IRS Preparer Tax Identification Number (PTIN), they are legally able to work as a federal tax return preparer. These individuals do not have the training or authority to represent tax clients before the IRS, as of January 1, 2016.
To help taxpayers who are looking for the credentials of tax professionals at the IRS, a directory with each federal tax return preparer, with required credentials and specific qualifications is available. This directory allows taxpayers to search for a specific tax preparer or professionals by name, city, state and ZIP code. Enrolled agents, CPAs, enrolled retirement plan agents, and enrolled actuaries who hold their PTINs are included in this directory. The directory also contains the Annual Filing Season Program Record of Completion recipients. These individuals aren’t enrolled agents, tax attorneys, or CPAs. Individuals in this program are required to complete continuing education hours if they plan to complete tax filings for their clients in an upcoming tax year.
Salary and Career Outlook
As of 2016, the job outlook for a revenue agent, tax examiner, collector, or other tax professional should show insignificant change between 2023 and 2033. Any effect on their employment prospects is affected only by any future changes to local, state, or federal government budgets and this means that they enjoy a certain amount of job security within the tax industry, even outside of tax season.
The median annual wages for a tax examiner, revenue agent, or tax collectors was $58,530, or about $28.14 per hour, as of May, 2023.
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