I suspect the IRS gets a bad rap because people don’t like owing money and the IRS is usually right when they send corrections, but my experience left me with nothing but respect for their front-line support. To remain as friendly and courteous as they were considering the rage that must be directed towards them on a daily basis is pretty impressive.
My state's revenue department is the one I truly fear.
Never dealt with the state of ND, but my one dealing with Illinois makes me think its not confined to the tax department. I detail my problems with their DOT in https://news.ycombinator.com/item?id=5521011#5521345
But the comparison is still appropriate due to the sheer gravity of both situations. If your issue hadn't been worked out over the phone (say it required more subjective interpretation), you likely would have hired someone. Nobody wants to get walked on by an 800lb gorilla.
While some aspects of interacting with the IRS may be refreshingly easy compared to expectations, they are not setup to be universally so. See the steep after-the-fact penalties for getting some types of things wrong (as opposed to simply just preventing them in the first place), as well as the prohibitive fees associated with "private letter rulings".
Your appeal to the individual people working there is fallacious, as it would preclude any criticism of organizations as a whole. I have no doubt that the individuals working there are all trying to do a decent job, just as at Google. The problems are at higher levels of complexity. A program segfaulting is not an indictment of the transistors.
Fees for private letter rulings don't seem like a problem to me, because people always have the option of arranging their affairs in a simple and straightforward manner. In order to deter gamesmanship, there needs to be a substantial cost to running close to the edge.
Dirty dealing in the $175 billion Amazon Marketplace