An IRS tax examining technician is responsible for conducting examinations of tax returns filed by individuals, businesses, and other entities to determine if the right amount of tax was paid. Their role involves reviewing tax returns, financial records, and other supporting documents to identify potential errors or instances of tax fraud or evasion.
Typical duties and responsibilities
Some of the most common duties and tasks performed by an IRS tax examining technician include:
- Reviewing tax returns and financial documents – This involves thoroughly analyzing individual, business, partnership, and other tax return forms along with supporting documents like W-2s, 1099s, receipts, bank statements etc. to identify discrepancies.
- Conducting face-to-face and correspondence tax examinations – Tax examining technicians are responsible for corresponding with taxpayers by mail to request documentation and explanations for identified issues. They also meet with taxpayers in-person to go through records.
- Analyzing accounting records and financial statements – Examining technicians must review accounting records, ledgers, income statements, balance sheets etc. to verify that all income, deductions and credits claimed match the documentation.
- Interviewing taxpayers – Technicians need to correspond with taxpayers directly via phone, email or in-person meetings to follow up on unclear issues and request additional documentation as needed.
- Researching tax laws, rulings and guidelines – Examining complex returns requires researching IRS publications, tax codes, court rulings and other resources to determine the correct tax treatment.
- Preparing reports on examination findings – Once an examination is complete, the technician must summarize their findings, adjustments, and recommendations in a clear examination report.
- Explaining audit findings to taxpayers – Technicians must explain their audit findings, proposed changes, penalties etc. to the taxpayer and address any questions.
- Referring cases for legal support – If a tax evasion case is highly complex or requires legal prosecution, the examining technician refers it to the appropriate legal division.
- Maintaining detailed case files – Well-organized records of all documents, correspondence, and notes related to an examination must be maintained.
Skills and qualifications
To be successful as a tax examining technician, it’s important to have:
- Attention to detail – Must be meticulous when reviewing complex financial documents to spot inaccuracies or suspicious issues.
- Analytical skills – Need strong critical thinking skills to interpret tax codes and evaluate complex tax scenarios.
- Math skills – Should have good numeric capability to examine financial figures, perform calculations etc.
- Communication skills – Must correspond clearly with taxpayers to explain findings and request documentation.
- Interpersonal skills – Examining technicians need to maintain professionalism when interacting with taxpayers during reviews.
- Research skills – Must be able to leverage resources to find relevant tax laws and IRS rulings.
- Computer literacy – Should be adept with spreadsheets, tax software and databases used for case management.
- Tax knowledge – In-depth understanding of federal, state and local tax codes is essential.
Most employers require at least an associate’s degree in accounting, business administration or a related field. Certifications like Certified Public Accountant (CPA), Enrolled Agent (EA) or Certified Tax Examiner (CTE) are preferred but not always required.
Work environment
IRS tax examining technicians typically work standard 40 hour weeks in an office environment. However, overtime may be required during busy tax seasons.
Technicians split their time between working independently to review returns and financial data, and interacting with taxpayers via phone, mail and in-person meetings. Extensive computer work is required for researching tax codes, maintaining records, generating reports etc.
Some travel may be needed to conduct field audits or meet taxpayers unable to come to the local IRS office. Safety protocols are followed during out-of-office taxpayer meetings.
Average salary
The average annual salary for an IRS tax examining technician is approximately $40,000 to $60,000 per year. However, salaries can vary based on:
- Years of experience
- Education level
- Certifications held
- Geographic location
- Security clearance status
Bonuses and excellent government benefits like retirement plans, health insurance and paid leave also add to the overall compensation potential.
Career development and advancement
With several years of experience, IRS tax examining technicians can advance to senior technician or lead technician roles with more authority and higher pay grades. Other potential career progression options include:
- Revenue agent – Performs more complex field audits of businesses, partnerships and corporations.
- Revenue officer – Collects overdue taxes through actions like wage garnishments, asset seizures and bank levies.
- Tax expert – Provides support by interpreting complex tax scenarios and structuring agreements.
- Managerial roles – Oversees teams of examining technicians and revenue agents.
Expanding tax knowledge and earning additional certifications like Certified Public Accountant (CPA) can enhance qualifications for advancement too.
Job outlook
Employment for IRS tax examining technicians and revenue agents is projected to grow 4 percent over the 2020 to 2030 period, according to Bureau of Labor Statistics estimates. This is slightly slower than average due to IRS budget constraints impacting hiring capacity. However, many currentroles will need replacement due to retirements.
Overall job prospects should be good for those who meet education requirements, gain relevant skills and earn professional certifications. The ability to communicate in multiple languages is also beneficial due to the diverse taxpayer population.
Conclusion
IRS tax examining technicians play a critical role in helping ensure taxpayers accurately file and pay their taxes. They utilize their finance, tax and analytical skills to perform thorough examinations capable of identifying mistakes and potential fraud. For those interested in tax law, it can serve as a solid career path with good job security and opportunities for advancement within the IRS organization. However, excelling in the role requires strict attention to detail, research capabilities and communication skills when interacting with taxpayers.
Pros | Cons |
---|---|
Good job security with federal government | Can be high stress during tax season |
Strong earning potential with overtime pay | May need to meet strict quotas and goals |
Excellent federal benefits package | Requires attention to detail for reviewing complex returns |
Interesting work for those who enjoy tax code | Typically requires overtime hours during tax season |
Opportunities to advance your career | Dealing with irate taxpayers can be challenging |