Today, we embark on a mission—a mission to fortify your practice, protect your interests, and ensure you receive the compensation you deserve. As General Patton once inspired his troops in WWII, I am here to galvanize you, the valiant tax professionals, to stand firm in the face of challenges and emerge victorious in your IRS representation cases.
The Battle Plan: Document Everything
In the trenches of tax representation, one of the most formidable adversaries we face is the dreaded “But you didn’t tell me that” client. These clients, whether through selective memory or genuine misunderstanding, can pose a significant threat to your practice. The solution? Documentation.
- Reduce to Writing: After every significant discussion, reduce it to writing. Send an email summarizing the main points, decisions, and actions required. This not only serves as a reminder to the client but also as a protective shield for you.
- Certified Mail: For critical communications, send letters via certified mail. Even if the client doesn’t claim the certified mail, the regular mail will reach them. Keep the returned certified mail unopened as evidence.
- Client Acknowledgment: Always request a reply from the client acknowledging receipt of your communication. This can be an email, a signed letter, or a duplicate copy of the letter they sign and date.
Strategic Communication: Clarity and Precision
To prevent misunderstandings, clarity and precision in communication are paramount. When advising clients on actions like making payments to the IRS while you wait for returns to be prepared, a Form 433-A to be compiled, or Appeals to respond, be explicit. Explain the consequences of changes in their financial situation, such as winning the lottery or receiving a raise, and how these could affect their resolution status such as dropping out of Currently Not Collectible or adding a new liability can kill their Installment Agreement or Offer-in-Compromise.
The Art of Getting Paid: Ensuring Fair Compensation
In this battle, your time and expertise are your greatest assets. Ensure you are compensated fairly for your services.
- Engagement Letters and Retainers: Always use engagement letters and require retainers up front before starting any work. This applies to any type of professional work you do for a client. For tax return preparation, a retainer of at least 50% is advisable. For IRS representation cases, secure a retainer of $3,000 to $5,000 for exams.
- Value-Based Flat Fees: For collections cases, consider a value-based flat fee structure. Collect 100%