Category: IRS News

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

2024 IRS Collection Financial Standards released today (4/22/24)

The IRS Collection Financial Standards outline the average living expenses for individuals and families across the nation, covering essential categories such as food, clothing, housing, healthcare and transportation. As tax professionals, it’s our duty to ensure that our clients are accurately represented when negotiating with the IRS. By using these standards, we can help our clients achieve a fair and manageable resolution to their tax troubles. In most cases.

Now, here’s an important update that you won’t want to miss. The IRS has just released new Collection Financial Standards today (April 22nd, 2024), reflecting the current economic conditions, inflation and cost of living. This means that it’s time to roll up our sleeves and update the financials of our current client cases with the new numbers. Failing to do so could result in inaccurate assessments and potentially unfavorable outcomes for our clients.

When applying the IRS Collection Financial Standards, it’s essential to thoroughly review your clients’ financial situations. Take into account their income, expenses, and any unique circumstances that may affect their ability to pay. By subtracting the standard living expenses from their income, you can determine the amount that the IRS expects them to allocate towards their tax debts. This information is crucial when negotiating installment agreements, offers in compromise, or other resolution options.

As licensed tax professionals, it’s our responsibility to stay up-to-date with the latest IRS regulations and guidelines. The release of the new Collection Financial Standards serves as a reminder of the ever-changing landscape of tax resolution. By incorporating these updated standards into our practice, we can provide our clients with the most accurate and effective representation possible.

So, let’s embrace the challenge and use our expertise to navigate the complex world of IRS collections. With the new Collection Financial Standards in hand, we can help our clients find a path towards resolving their tax issues while ensuring that their basic living expenses are met. Together, we can make a difference in the lives of those we serve and demonstrate the value of having a knowledgeable and dedicated tax professional in their corner.

We will be updating our CFS Quick Reference Guide shortly. Check your email for how to access it.

Warmly,

Dan

Want to get some great education! Then click here to find out more about the Tax Rep Defender Odyssey 2024

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Dan Henn, CPA, CTR™
Managing Member
Tax Pro Academy, LLC

P.S. Want to learn more about the Tax … Continue reading

To efile now or to wait! A Retroactive mess

In the world of taxes, uncertainty is a constant companion. As tax professionals, we often find ourselves in the tricky situation of deciding whether to file tax returns for our clients when Congress is on the verge of changing tax rules retroactively as they are currently facing. This conundrum presents unique challenges and requires a balanced approach, ensuring compliance while safeguarding clients’ interests.

Understanding the Complexity

Retroactive tax law changes, though not frequent, are a reality. When Congress signals potential changes, it can disrupt the usual tax planning and filing process. The changes can affect various aspects of tax law, including rates, deductions, credits, and even filing procedures. The implications for both individual and business clients can be significant.

The Professional’s Dilemma

As tax professionals, our primary goal is to serve our clients’ best interests while adhering to the law. When facing potential retroactive changes, we are caught between two imperatives: filing timely returns and optimizing clients’ tax positions. Delaying filing might benefit the client if the law changes favorably, but it also risks non-compliance and penalties if the changes don’t materialize or don’t apply as expected.

Best Practices in Times of Uncertainty

  1. Stay Informed and Inform Your Clients: Keep abreast of legislative developments and understand the potential impact on your clients. Clear communication is vital. Inform clients about the possible changes and the risks and benefits of waiting to file.
  2. Evaluate Each Client’s Situation Individually: No two clients are the same. Consider the unique aspects of each client’s tax situation. For some, the potential benefits of waiting may outweigh the risks, while for others, the opposite may be true.
  3. Consider Filing Extensions: When appropriate, filing an extension can be a strategic move. It gives both you and your client more time to make informed decisions based on the finalized tax laws.
  4. Document Your Advice and Decisions: Keep detailed records of your communications with clients regarding the potential law changes and your advice. Give them options and let them make the decision. This documentation can be crucial in demonstrating due diligence. If you discuss this with your client verbally (in person or on the phone), document it in writing by following it with an email or letter. This can be a great “Get out of jail FREE!” card.
  5. Prepare for Multiple Scenarios: Develop tax strategies that can adapt to different outcomes. This proactive approach can minimize disruptions and last-minute scrambling.
… Continue reading