Is there really enough work for licensed tax pros to take on IRS Collections cases? Heck Yeah!

The Lucrative World of IRS Collections Representation

Are you a licensed tax professional looking to elevate your practice and transform your financial future? Look no further! The world of IRS Collections Representation is calling, and it’s time to answer. Let’s dive into the goldmine of opportunities waiting for you, backed by hard data and real-world success stories.

The Numbers Don’t Lie: A Sea of Opportunity

The latest IRS Data Book paints a picture of immense potential. As of the end of fiscal year 2023, there were over 11.3 million taxpayer delinquent accounts, with a staggering $158 million in assessed taxes, penalties, and interest. That’s not just a statistic; that’s a clarion call for professionals like you to step up and make a difference!

But wait, there’s more!

Add to that 2 million cases of delinquent return investigations, and you’re looking at a vast ocean of clients who desperately need your expertise.

The Math of Success: Your Ticket to Financial Freedom

Let’s break it down:

  • Average case value: $4,000 to $5,000 (a low of $2-3k or as high as 6 figure fees to you, depending on the case)
  • Time investment: 7-8 hours per case (some as low as 2-3 hours or 10-20 hours, but can be more depending on the case)
  • Potential hourly rate: $500+ (but please note, we do NOT bill by the hour)

Imagine adding just one case a month to your practice. That’s an extra $48,000 a year, minimum! But why stop there? With the right systems and support, you could be looking at hundreds of thousands, if not millions, in additional revenue.

Beyond the Numbers: The Joy of Making a Difference

This isn’t just about money. It’s about transformation – yours and your clients’. By stepping into IRS Collections Representation, you’re not just changing your financial trajectory; you’re becoming a lifeline for people drowning in tax debt.

Picture this: A client comes to you, stressed and overwhelmed. You guide them through the process, perhaps securing an installment agreement or even an offer in compromise. Suddenly, they can breathe again. That’s not just a service; that’s life-changing impact.

The Time is Now: Seize Your Destiny

The market is ripe. With only about 50,000 tax professionals handling these cases, there’s more than enough work to go around. In fact, the current caseload far exceeds what any individual can handle alone.

But here’s the kicker: As more professionals enter this field, the … Continue reading

Hey Tax Pro! You are Leaving Money on the Table by NOT Offering IRS Collections in Your Practice

Listen up, tax pros. You’re missing out on a goldmine sitting right under your nose. I’m talking about IRS Collections, also known as Tax Resolution. If you’re not offering this service to your clients, you’re practically handing money to your competitors. Let me hit you with some cold, hard facts about why you need to add this to your practice ASAP:

  1. Massive Market Opportunity
    In Fiscal Year 2023, the IRS collected over $104.1 billion in unpaid assessments. That’s BILLION with a B. There’s an ocean of taxpayers out there drowning in IRS debt, desperately seeking a lifeline. Why aren’t you throwing it to them?
  2. High-Value Cases
    According to the Tax Resolution Academy®, the average fee for a tax resolution case is $3,500. That’s not chump change, folks. One solid collections case could be worth 10 or more basic tax returns.
  3. Year-Round Revenue
    Tax season comes and goes, but IRS collections work is a 365-day money machine. No more feast-or-famine cycles in your practice. Keep that cash flowing all year long.
  4. Differentiate Your Practice
    The NAEA reports that not all tax preparation professionals handle IRS collections cases. By offering tax resolution services, you’ll stand out from the crowd of basic tax preparers and attract higher-quality clients.
  5. Leverage Your Existing Skills
    You already understand the tax code. IRS collections work is a natural extension of your expertise. Don’t let that knowledge go to waste! It is not uncommon for a prospect to come in with a balance due to the IRS, but have a need to file at least 1 or 2 old tax returns.
  6. Recession-Proof Service
    When the economy tanks, tax problems skyrocket. By offering collections work, you’re insulating your practice against economic downturns. So, when some people turn to be a DIY with their tax return, you can fill in the gaps with additional collections cases.
  7. Repeat Business and Referrals
    Solve a client’s IRS nightmare, and you’ve got a loyal customer for life. They’ll sing your praises to everyone they know who’s in tax trouble. Oh, and yes, occasionally you get a boomerang client that screwed up and needs your help again.
  8. Higher Perceived Value
    Tax resolution is a specialized skill. Clients will view you as an expert and be willing to pay premium rates for your services. Much more than they pay for the commodity tax return. It is not hard to get $250-750/hr on many of these cases.
  9. Personal
… Continue reading

Cost of Client Procrastination on your Tax Practice!

We are now in what I affectionately call the Second Tax Season. While it is not usually as base as the first one of the year, it can get pretty hairy. If you are like I used to be, you would pick up your hours as the extension deadlines approach. In some cases, working 60-70 hours a week (or possibly more). 

So, the question becomes, why do we do this? The simple answer is we love our clients. We love them so much, we take their abuse. Yes, I said abuse. Seems like a strong word, but follow this with me for a few minutes.

You work really hard from January to mid-April. You take a little bit of rest, but then it is back to work on the extended returns for the information you had most of their info. Then there is that final 10-20% of returns you have in your office to do, but you can’t. Why not? Because you are missing 50-80% of the information you need to prepare the return.

So, what do you do? You start sending emails to these clients to request that missing info. As time moves on, and their excuses keep piling in on why they cannot produce that info, you start having your staff calling them to get the info into your office.

Days turn into weeks, weeks into months, and now the deadline is upon us. This is when you send the final email about two weeks before the final deadline. You tell them that if it is not filed on time they will incur late filing penalties which can be very expensive.

Well, that lit the fire under their butts and they finally get the information to you with 10 days (or less) for you to get the return done. What do you do?

Well, if you are like most tax professionals, you just grin and bear it. You hunker down and get the return done. You get it done on time, bill them the same amount you did last year and we all move on.

BUT WHY?!! Why do we do that?

We take this abuse! You don’t have to, nor should you take this abuse from anyone! It doesn’t matter if they have been a client 15 years, or their your mother or brother. There is no excuse for them making their emergency your emergency.

Here is a list of 10 … Continue reading