Category: Advanced Tutorials

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Claude Code for Tax Pros: Build the Tool, Not Just the Prompt

An EA I know checks the same list every single morning before she
opens her inbox. Which resolution cases have an IRS response deadline
inside the next thirty days. She built that list by hand, in a
spreadsheet, and updates it herself, every day, because she got burned
once. A case sat quiet for six weeks, the deadline passed, and she spent
a Saturday writing a very uncomfortable letter to a very angry
client.

She does not need a better spreadsheet. She needs something that
checks the list for her and only bothers her when something is actually
wrong. That is the difference between chatting with AI and building a
tool with it, and almost nobody in this profession has made that jump
yet.

Here is the answer up front: Claude Code lets you describe a task in
plain English and get working software back, not just an answer to a
question. You are not learning to program. You are directing something
that already knows how, and the output is a tool that keeps running
after you close the laptop.

Most Tax Pros Are Stuck at “Ask It a Question”

If you use AI at all, you probably use it the way you’d use a very
well-read colleague. You ask something, it answers, you take the answer
and do the work yourself. That is genuinely useful. It is also the
ceiling of what a chat window can do.

A tool is different. A tool runs on its own schedule, checks
something specific, and only surfaces when a human needs to act. The
deadline monitor my EA friend eventually built does not answer
questions. It checks her case list every night at 7pm and sends her
exactly one message: which cases have a deadline inside thirty days, and
which of those have had no IRS contact logged in two weeks. Nothing
else. She reads three lines and knows if tonight is a work night.

That shift, from asking to building, is what Claude Code actually
does for a tax practice. You are not hiring a developer. You are telling
it what “done” looks like, and it writes the thing.

The Three-Question Test Before You Build Anything

Not every task deserves a tool. Before you spend an hour building
something, run it through three questions.

Does this happen every week or more. A one-time task is not worth
automating, no matter how annoying it is.

Does the … Continue reading

Unlock Your Potential: Why Every IRS Representation Specialist Should Write a Book (And Ways to Get It Done!)

Are you ready to take your IRS Representation expertise to the next level? If you’ve been considering writing a book but haven’t taken the plunge yet, this blog post is your personal cheerleader, here to convince you that now is the perfect time to share your knowledge with the world. Let’s dive into why writing a book can be a game-changer for your career and explore the various ways you can make it happen!

Why Write a Book?

First things first – why should you, a busy tax professional, even consider writing a book? Well, let me tell you, the benefits are enormous:

  1. Establish Your Authority: A book instantly positions you as an expert in your field. Imagine handing a potential client your own book on IRS Representation – talk about making a lasting impression! This is something your competition is NOT doing. Are they going to read it? Probably not, but they will be very impressed.
  2. Attract More Clients: Your book becomes a powerful marketing tool, drawing in new clients who are impressed by your expertise.
  3. Share Your Knowledge: You’ve accumulated years of experience – now’s your chance to help others navigate the complex world of IRS Representation.
  4. Create a Passive Income Stream: Once published, your book can continue to generate income for years to come. Although, don’t expect to make thousands of dollars, but you will make a few extra bucks.
  5. Personal Growth: The process of writing a book will deepen your own understanding and potentially open up new insights in your field.

Convinced yet? Great! Now, let’s look at the different ways you can bring your book to life.

Method 1: Write It Yourself – You’ve Got This!

You’re an expert in your field, and who better to write about IRS Representation than you? Writing the book yourself allows you to infuse every page with your unique voice and perspective. Here’s how to get started:

  1. Outline Your Book: Start by jotting down the main topics you want to cover. Think about the questions your clients frequently ask or the challenges you often help them overcome. This will become the Table of Contents. Then you can write 3-5 bullets under each title. From there you can write 250-1,000 words to fill in each bullet point.
  2. Set a Writing Schedule: Dedicate specific times for writing (for most people this is in the AM). Even if it’s just 30 minutes a day, consistency is key!
… Continue reading

Ultimate Guide to IRS Installment Agreements

Many taxpayers find themselves unable to pay their full tax balances when they file their income tax returns. Some common reasons that people might have for being unable to pay their taxes to the IRS include increased investment returns, more self-employment income, bonuses, and salary increases. When a taxpayer is unable to immediately pay his or her tax debt, making payment arrangements will likely be necessary.

The most common type of payment arrangement taxpayers can make to take care of their tax balances is an installment agreement. With this type of arrangement, taxpayers will make monthly payments to the IRS. In most cases, the payments are made by payroll deductions or direct debits. The set-up fee for a direct debit agreement made online is $31. If the direct debit installment agreement is created over the phone, in-person, or by mail, the set-up fee is $107. Fees can be waived for low-income taxpayers.

If the taxpayer enters into an agreement to pay by other methods, the online set-up fee is $149. If the application is made in-person, over the phone, or by mail, the set-up fee is $225. Low-income taxpayers will be charged a set-up fee of $43.

During the installment agreement, late-payment penalties and interest will continue to accrue. However, the late-payment penalties will be halved during the months during which an installment agreement is effective. Installment agreements can be set up by calling the IRS, using the online payment agreement or OPA tool, or filing form 9465. Here is a guide to what you need to know about IRS installment agreements.

Understanding IRS installment agreements

Taxpayers are responsible for meeting their obligations when they owe outstanding tax liabilities to the government. When a tax liability is overdue, the taxpayer will incur monthly late-payment penalties and added interest. To avoid added charges, taxpayers are advised to pay their balances in full. However, some taxpayers are not able to do so. When taxpayers cannot pay what they owe in full, the IRS allows them to enter installment agreements to make monthly payments.

Taxpayers have the following options when they make payments:

  • Payroll deductions
  • Direct debits
  • Payments through the Electronic Federal Tax Payment System
  • Credit card payments
  • Check or money order payments
  • Payment by the OPA

 

Streamlined IRS Installment Agreements

Streamlined installment agreements are available to individual taxpayers who owe less than $50,000 under IRM 5.14.5.2. This includes all unpaid assessments but does not include … Continue reading