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A tax examiner (or tax auditor) is primarily responsible for assessing the tax liability of businesses and individuals as prescribed by regulations and laws. To do this, an examiner may need to review tax returns, notify payers of underpayment and verify financial data. This role requires a number of skills, and accounting only scratches the surface.

Today’ tax examiners work solely for local, state and federal governments, although they interact with all segments of society. The tax monies they account for pay for the services and infrastructure we use daily, from maintaining roads, to financing the military, to providing social services, to facilitating education.�� 

The funds raised by taxation are important, which makes those who determine tax liability (and who support tax collectors) integral to the system.

Though examiners, collectors and agents have overlapping duties, they are not the same and their titles should not be used interchangeably. Tax examiners, as noted, assess a company’s or individual’s tax liability. Tax collectors send out the tax bills they’ve prepared and are responsible for “collecting” the tax money. Tax agents, meanwhile, or “enrolled agents,” are similar to certified public accountants (CPAs) and are authorized to represent taxpayers. They often file tax returns and pay tax bills to the IRS on behalf of their clients. Giving advice to taxpayers is also part of this role.

Depending on the level of government — county, state or federal — tax examiners perform specific duties related to their office.

At the state level, they may perform the following duties (these can vary by state):

• Testify at hearings or in court to support compliance and enforcement
• Update and maintain taxpayer accounts within the state’s automated systems
• Examine and audit financial records and tax reports to ensure compliance with state tax laws
• Enforce state tax laws using statutory collection tools such as liens, levies, account freezes, bond forfeitures and permit suspensions
• Provide guidance to taxpayers regarding regulations, requirements, and their rights and responsibilities
• Monitor changes in legislation and legal cases that affect state tax enforcement
• Calculate and verify state-specific tax rates, including sales tax and unemployment compensation rates

For authoritative information, check your state’s department of revenue website.��

This career path typically starts with a bachelor’s degree in accounting or business, and certifications and further training can be beneficial. Because these professionals deal with the public regarding sensitive matters, good communication skills are a must.

The knowledge gained from a bachelor’s degree in accounting could be beneficial for a tax specialist in any role. Classes in this course of study may include:

• Principles of accounting
• Micro- and macroeconomics
• Business economics
• Financial auditing
• QuickBooks
• Cost and managerial accounting
• Corporate taxation

In addition to education, experience in entry-level accounting positions (like in a bookkeeper role) may help would-be tax specialists build relevant skills.

Tax examiners at the Internal Revenue Service may qualify for a position with a bachelor’s degree in any field, specialized work experience or a combination of the two.��   

Many newly hired tax professionals will go through on-the-job training, which can last between one month and one year. Tax verification specialists like these must also stay current on changes to the applicable tax codes as well as collection and enforcement procedures.

Tax professionals need a mix of hard and soft skills. Hard skills include understanding accounting principles, tax laws and tax software. Like anyone in the accounting and taxation field, attention to detail is important.

Communication, organizational, and analytical skills are also essential. Examiners must explain findings clearly, navigate complex tax issues, and handle sensitive information with integrity.

Tax analysts at all levels can benefit from traits like active listening, negotiation and the ability to solve complex problems.  

Tax compliance specialists can pursue various career paths. Entry-level positions may prepare for senior examiner roles, and with experience, professionals may become supervisors or managers overseeing teams of examiners.

Some transition to roles such as tax consultants or advisors for private firms, leveraging their expertise in tax law and regulation to offer specialized services. Others may choose to move into different but related fields. Additionally, opportunities exist to work for federal or state government agencies, which may offer new challenges and advancement prospects compared to the private sector.