Billing doesn’t have to be uncomfortable. Yet for many tax resolution professionals, it’s one of the most awkward parts of client work. You’ve helped someone navigate a stressful IRS issue—so why is it hard to get paid on time (and without objections)?
Here’s how to fix that.
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Always Use Engagement Letters
Before doing any work, provide a detailed engagement letter outlining your services, deliverables, and fees. This sets clear expectations and provides protection if disputes arise. Include payment schedule, refund policies, and what happens if additional work is required.
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Collect Payment Upfront (or in Milestones)
Don’t wait until the end of the engagement to ask for payment. For flat-fee work, collect payment before starting (usually no less than 50%). For longer projects, break payments into milestones: 50% retainer upfront, another portion shortly before case submission, and the final upon case submission (but never after case submission).
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Use Transparent, Flat-Rate Billing
Clients appreciate knowing what they’ll pay in advance. Use flat fees whenever possible, especially for common case types like Offers in Compromise or Installment Agreements. This eliminates billing surprises and builds trust.
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Don’t Let Invoicing Slip
Set a consistent invoicing schedule. Use accounting software or a CRM to send reminders and track outstanding invoices. Avoid letting weeks go by without billing—clients forget what was done, and collections get harder the longer you wait.
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Automate Your Payment Systems
Make it easy for clients to pay you. Use online payment systems like Stripe, accounting software or client portals with saved card options. The fewer clicks it takes to pay you, the faster you’ll get paid.
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Charge for Your Time Strategically
If hourly billing is necessary, track your time in detail and explain what each item covers. Avoid vague charges. Educating clients on what each task entails helps them understand the value behind the invoice.
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Address Non-Payment Proactively
Don’t ignore late payments. Follow up professionally, reference your engagement terms, and outline next steps. Pause services immediately until payment is received. Having a consistent collections policy in place prevents uncomfortable conversations. The goal is to avoid having accounts receivable as much as possible.
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Re-Evaluate Clients Who Resist Payment
If a client frequently disputes charges or delays payments, they may not be a good fit. These clients drain time and energy better spent on high-quality engagements. Learn to recognize the red flags and be willing to say no.
Final Thoughts
Clear communication, strong agreements, and smooth systems make billing a natural part of your service—not an afterthought. At Tax Resolution Academy®, we teach pros how to build confidence in billing so they get paid what they’re worth—on time, every time.
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Here’s to working smarter, not harder!
And a brighter future for your tax practice!
If you want to know more consider joining the Tax Resolution Academy® by clicking this link
I hope this helps.
If you have any questions, please reach out to us.
I would love to hear your thoughts, challenges, and successes in writing your very own book.
Have a GREAT day,
Cordially,
Dan
Dan Henn, CPA, CTR™
Co-Founder, Tax Resolution Academy®
Managing Member
Tax Pro Academy, LLC
P.S. Want to learn more about the Tax Resolution Academy®, go to https://community.taxresolutionacademy.com.
P.P.S. Check out our CPE classes here! Click the link to Follow our page and you will be notified when we release new classes.
