How to Be Internal Revenue Agent - Job Description, Skills, and Interview Questions

Aug 8, 2020 / 5 Minutes Read / By Albert

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The Internal Revenue Agent plays an important role in the American economy, as they are responsible for the collection and enforcement of federal taxes. By collecting the taxes owed, they help ensure that the government has the funds to operate and provide vital services to the public. Additionally, they help to ensure that taxpayers comply with the law by providing information and resources to help them understand their obligations. As a result, Internal Revenue Agents have a large impact on the economic stability of the country and help contribute to a healthy fiscal environment.

Steps How to Become

Obtain a Bachelor's Degree. Internal Revenue Agents must have a bachelor's degree in accounting, finance, or a related field. Courses in economics, business law, and auditing are also beneficial.
Earn Professional Certification. The Certified Public Accountant (CPA) credential is the most sought after credential for Internal Revenue Agents. Other popular credentials include the Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE), and the Certified Management Accountant (CMA).
Gain Experience. Working as an auditor or tax preparer is a great way to gain experience and develop the skills necessary to become an Internal Revenue Agent. Many employers offer on-the-job training for aspiring Internal Revenue Agents.
Apply for Open Positions. The IRS posts job openings for Internal Revenue Agents on their website. To apply for an Internal Revenue Agent position, you must submit a resume and cover letter detailing your qualifications and experience.
Pass the Exam. Applicants must pass a written exam to become an Internal Revenue Agent. The exam tests knowledge of tax law, accounting principles, and other related topics. Additionally, applicants must pass a background check and drug test before they can be hired.

In order to become an ideal and capable Internal Revenue Agent, one must possess a combination of education, experience, and technical knowledge. A relevant degree in taxation, accounting, or other related fields provides the foundational knowledge needed to understand the concepts and regulations of taxation. experience in the field is essential as it provides real-world application of tax laws.

Lastly, a strong technical knowledge of taxation software and databases is necessary to effectively analyze information and make the necessary calculations for filing purposes. When all of these elements are combined, a successful Internal Revenue Agent can be created who is able to accurately and efficiently process tax returns.

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Job Description

Ensure compliance with federal and state tax laws
Prepare and review individual, corporate, and trust tax returns
Examine financial records to verify accuracy of tax returns
Research and interpret tax codes
Investigate and determine the correctness of delinquent tax returns
Collect overdue taxes in cases of non-compliance
Identify and advise taxpayers on tax law changes
Respond to taxpayer inquiries
Prepare and audit financial records for accuracy
Develop collection strategies for delinquent taxpayers

Skills and Competencies to Have

Knowledge of tax laws and regulations
Understanding of accounting principles
Ability to interpret complex financial records
Excellent organizational, research and problem-solving skills
Ability to work independently and as part of a team
Proficiency in using computers and software applications related to the job, such as tax preparation programs
Ability to communicate effectively with taxpayers and other IRS personnel
Professionalism and integrity in carrying out the duties of the job
Ability to manage multiple tasks simultaneously
Knowledge of audit techniques

Having the right skills is essential for any Internal Revenue Agent. An effective Internal Revenue Agent needs to be able to have strong analytical and problem-solving skills in order to assess financial information and adhere to regulations. It is also important to have excellent communication skills as they must explain complex tax codes and guidelines to clients.

they need to be able to provide accurate advice and make sound decisions. Having good organizational skills is also essential, as they must be able to track and prioritize multiple tasks, manage deadlines, and keep accurate records. Finally, since Internal Revenue Agents work with sensitive information, having a high level of integrity is essential.

All these skills combined will help an Internal Revenue Agent effectively provide quality services to clients and ensure compliance with tax laws.

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Frequent Interview Questions

What experience do you have working in the IRS?
How familiar are you with tax laws and regulations?
What do you consider to be the most important part of being an Internal Revenue Agent?
Are you comfortable working with a wide variety of taxpayers?
What strategies do you use when conducting an audit?
How do you ensure accuracy when filing a tax return?
How would you handle a difficult taxpayer who is uncooperative in providing the necessary information?
What steps do you take to ensure that all paperwork is properly completed?
How do you stay up-to-date on changes in tax law?
Describe a situation where you had to make a difficult decision while performing your duties as an Internal Revenue Agent.

Common Tools in Industry

Tax Preparation Software - A software program that helps individuals and businesses prepare their taxes. (eg. TurboTax)
Tax Audit Software - A software program that helps auditors identify errors and inconsistencies in tax returns. (eg. TaxAudit)
Document Storage Platforms - A platform to store documents related to tax returns and other financial documents. (eg. Dropbox)
Financial Modeling Software - A software program that helps users create financial models to project future income and expenses. (eg. Microsoft Excel)
Compliance Management Software - A software program that helps organizations ensure regulatory compliance with tax laws and other regulations. (eg. Compliance Manager)
Data Mining Tools - Software programs that help compile and analyze large amounts of data to identify patterns and relationships. (eg. Tableau)
Tax Research Platforms - Software programs that help users access relevant tax codes and regulations. (eg. LexisNexis)

Professional Organizations to Know

American Institute of Certified Public Accountants (AICPA)
National Association of Tax Professionals (NATP)
National Association of Enrolled Agents (NAEA)
National Society of Tax Professionals (NSTP)
American Society of Tax Problem Solvers (ASTPS)
National Association of Tax Advisors (NATA)
Tax Executives Institute (TEI)
American Society of Tax Professionals (ASTP)
National Tax Practice Institute (NTPI)
Society of Trust and Estate Practitioners (STEP)

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Common Important Terms

Tax Return. A written document submitted to the Internal Revenue Service (IRS) that details a person's or business's income, expenses, and other financial information.
Taxpayer. An individual or business that is legally obligated to pay taxes to the government.
Tax Assessment. The process of evaluating a taxpayer's financial information in order to determine the amount of tax owed.
Tax Audit. A review of a taxpayer's financial records, such as income tax returns, conducted by the IRS to ensure compliance with tax laws.
Tax Evasion. An illegal act in which a person or business attempts to avoid paying taxes by not accurately reporting income or by claiming false deductions.
Tax Shelter. A legal arrangement that allows a person or business to reduce their taxable income by investing in certain eligible activities or investments.
Tax Liability. The amount of money that an individual or business owes in taxes.
Tax Credit. A reduction in the amount of taxes owed by an individual or business due to certain eligible activities or investments.

Frequently Asked Questions

Q1: What is an Internal Revenue Agent? A1: An Internal Revenue Agent is a professional employed by the Internal Revenue Service (IRS) to investigate and audit taxpayers for compliance with tax laws. Q2: What qualifications are required to become an Internal Revenue Agent? A2: To be eligible for the position, an applicant must have a bachelors degree in accounting, law, business administration, or a related field, along with at least two years of professional experience in accounting, auditing, or tax law. Q3: What are some of the core duties of an Internal Revenue Agent? A3: The primary responsibilities of an Internal Revenue Agent include auditing taxpayer records and financial statements, conducting interviews with taxpayers and their representatives, investigating tax fraud and evasion cases, and filing criminal charges when necessary. Q4: How much do Internal Revenue Agents earn? A4: According to the Bureau of Labor Statistics, the median salary for an Internal Revenue Agent in 2019 was $67,890 per year. Q5: What is the job outlook for Internal Revenue Agents? A5: The job outlook for Internal Revenue Agents is very positive, with a projected 7% growth in employment from 2019 to 2029.

Web Resources

Revenue agent | Wex | US Law | LII / Legal Information Institute www.law.cornell.edu
Revenue Agent | Economics at Illinois economics.illinois.edu
IRS Enrolled Agent Preparation Program www.laguardia.edu