Listen up, tax pros. You’re missing out on a goldmine sitting right under your nose. I’m talking about IRS Collections, also known as Tax Resolution. If you’re not offering this service to your clients, you’re practically handing money to your competitors. Let me hit you with some cold, hard facts about why you need to add this to your practice ASAP:
- Massive Market Opportunity
In Fiscal Year 2023, the IRS collected over $104.1 billion in unpaid assessments. That’s BILLION with a B. There’s an ocean of taxpayers out there drowning in IRS debt, desperately seeking a lifeline. Why aren’t you throwing it to them? - High-Value Cases
According to the Tax Resolution Academy®, the average fee for a tax resolution case is $3,500. That’s not chump change, folks. One solid collections case could be worth 10 or more basic tax returns. - Year-Round Revenue
Tax season comes and goes, but IRS collections work is a 365-day money machine. No more feast-or-famine cycles in your practice. Keep that cash flowing all year long. - Differentiate Your Practice
The NAEA reports that not all tax preparation professionals handle IRS collections cases. By offering tax resolution services, you’ll stand out from the crowd of basic tax preparers and attract higher-quality clients. - Leverage Your Existing Skills
You already understand the tax code. IRS collections work is a natural extension of your expertise. Don’t let that knowledge go to waste! It is not uncommon for a prospect to come in with a balance due to the IRS, but have a need to file at least 1 or 2 old tax returns. - Recession-Proof Service
When the economy tanks, tax problems skyrocket. By offering collections work, you’re insulating your practice against economic downturns. So, when some people turn to be a DIY with their tax return, you can fill in the gaps with additional collections cases. - Repeat Business and Referrals
Solve a client’s IRS nightmare, and you’ve got a loyal customer for life. They’ll sing your praises to everyone they know who’s in tax trouble. Oh, and yes, occasionally you get a boomerang client that screwed up and needs your help again. - Higher Perceived Value
Tax resolution is a specialized skill. Clients will view you as an expert and be willing to pay premium rates for your services. Much more than they pay for the commodity tax return. It is not hard to get $250-750/hr on many of these cases. - Personal Satisfaction
There’s nothing quite like the feeling of saving a client from financial ruin. You’ll sleep better at night knowing you’re making a real difference in people’s lives. Not to mention that in some cases, you can stick it to the IRS/government. I love it when I can tell the IRS to “Go pound sand!” - Untapped Potential in Your Current Client Base
I guarantee you’ve got clients right now who need collections help but are too embarrassed to bring it up. By offering the service, you’ll uncover hidden revenue in your existing book of business. You just have to ask. Ask that client who is sitting across your desk as you are delivering very bad news on the amount they owe, “Do you have the ability (or wherewithal) to pay this balance in full?”. For the few that say NO to that question, then you can sell them on your IRS collection representation services.
Wake up and smell the opportunity, tax pros. The IRS isn’t slowing down its collection efforts anytime soon. In fact, they’re ramping up and hiring up. The IRS Data Book shows they issued over 2 million levies in FY 2023. That’s 2 million potential clients who desperately need your help. It also says that there are just under 12 million cases open at the end of FY 2023. When there is only about 50,000 licensed tax professionals who handle this type of service, that is an average of 240 cases per professional. The solo practitioner can handle up to 40 cases on their own at one time.
Don’t let another tax season go by without adding this lucrative service to your arsenal. Many of your competitors are already cashing in. It’s time for you to get your piece of the pie. Remember, in business, you’re either growing or dying. There’s no standing still. Add IRS collections to your practice, and watch your revenue soar. Your future self will thank you for making this smart move today.
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.
P.P.P.S. Looking to attend the most exciting and transformational marketing conference of the year. Check out the TPPME 2024
Listen to the IRS Whisperer Podcast for a better discussion on this topic.
Ep 11, S 2 – Reasonable Cause Penalty Abatement and the Importance of a Value Ladder in your practice
