Part of my mission is to provide small firms and independent tax professionals with the resources to compete against the large, national tax resolution firms. This comes from a belief that the majority of tax debtors are better off working with a local practitioner (you), or at the very least working with somebody that is actually licensed to practice and is going to operate ethically and responsibly. This requires you to have an understanding of tax resolution marketing, how to quote fees and close sales, and then effectively represent tax debt clients (the technical delivery of the service). This is why I launched the Tax Resolution Academy®, because there is a distinct lack of competency and leadership within the tax debt representation industry.
“How do I get started in offering tax resolution services to new clients?” is one of the most common questions that I receive from readers.
There is, of course, a lot of material here on the Tax Resolution Academy® blog, most of it related to new lead generation, prospect follow up, practice management systems, and closing tax resolution sales. So, my goal with this resource page is to organize the blog posts for you into a more user-friendly format and show you how to get started with offering taxpayer representation within your existing tax or accounting practice.
Before Getting Started
If you have an existing tax practice, you should know up front that there is a steep learning curve to doing IRS collections representation. It’s an entire new set of laws, regulations, procedures, forms, publications, and more. Adding a major new service offering to your practice is a significant undertaking, but tax resolution work is also one of the highest dollar-per-hour services you can offer.
Don’t underestimate the amount of time and money you’re going to have to invest in starting or growing a tax resolution practice. It’s no different than expanding into wealth management, estate planning, business valuation, etc. Any new service offering is almost like starting an entirely new business. The fact that you have existing clients and resources to draw from makes it far easier, of course, but it’s still a significant undertaking, not to be taken lightly.
With that said, I have a fairly specific philosophy about getting started doing tax resolution work. Many people will disagree with me on this, and that’s fine, but I’ve found the most success with direct consulting clients by doing things this way: First get the clients, then learn the case work.
Does this make your first few tax debt cases your guinea pigs? Yes, it sure does. But I also think it’s much easier to learn this way — in real time, with real situations. I’m heavily biased, of course, but it’s much easier to do this when you have a support system behind you in the form of hundreds of Tax Resolution Academy™ members, myself, and Dan to help you along the way.
Ready to get started? Then let’s get you started…
Step 1: Start your tax resolution marketing to find taxpayers that need your help.
Most tax professionals get their first tax debt representation case from an existing client. Perhaps you do a tax return for somebody that results in a 1040 liability they can’t pay, and they ask for your help on it. If you find yourself in this situation, don’t shy away from the opportunity — embrace it.
In this situation, one of the biggest mistakes I see practitioners making these days is that they don’t charge for this service. Even if you’re just completing a basic Form 9465 for a 1040 liability under $10,000, you need to realize that this service is more valuable than the tax return. Too many tax practitioners devalue their own time and services by just including this form of minor tax debt resolution with the tax prep fee. Don’t work for free.
If you want to do tax resolution but don’t have somebody asking for immediate help, then go through old client files to find folks that you can contact and ask them if they need help. This is the most fundamental form of tax resolution marketing that you can do. Check out this article on compiling client reactivation lists, and apply that information to getting some tax resolution work. Also see this post for an example letter to send, and modify that to tax resolution purposes.
After exhausting your existing client lists and referral sources, it’s time to go outside your existing client relationships, and proceed to one of the complete marketing plans that I outline here on the blog:
- How To Use IRS Tax Lien Filings To Get New Clients
- The Complete, Yet Simple, Marketing Plan For Solo Tax Practitioners
- One Hour Per Day Marketing Checklist
- Creating Inbound Leads With No Outbound Marketing
Step 2: Get paid.
So you’ve got one or more taxpayers that need your help. The next step, which is an uncomfortable reality for many tax professionals, is that you need to close the sale and get paid. What I’m talking about here includes stuff like sales training, engagement letters, and learning how to price your tax resolution services.
Join the Tax Resolution Academy™ for a complete library of forms, document templates, sales training, marketing materials, and more to start and run your tax resolution firm. Click here for details.
Step 3: Represent.
Your new client, that is. This is the case work part. This itself is an exhaustive subject. Learning how to represent clients involves both knowledge and skill… It’s both art and science, if you will.
This is an extremely difficult subject to cover in a blog format, which is why I don’t try to. What I can do, however, is point you in the direction of some good resources for learning the technical side of case work:
- Grab some caffeine and read the Internal Revenue Manual. It’s far from sexy, but it’s generally well written and comes straight from the proverbial horse’s mouth. IRM Part 5 discusses field collections procedures.
- Read my book Tax Resolution Secrets. Yes, this book was written for consumers with 1040 tax debts, but it’s a great primer for case work, plus it’s only $20.
- I post video replays of many of my CPE webinars onto my Tax Resolution Training YouTube channel.
- We frequently present high-level overviews of various tax resolution topics. We call this our Sweeping Overview series. Visit our CPE webinar schedule for upcoming classes.
- For “soup to nuts” training, take a gander at our Certified Taxpayer Representative™ program, a rigorous 140-hour technical curriculum providing the single most comprehensive training available in taxpayer representation.
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