Let’s review some data that you’ve likely heard from me before.
Ready? Set? Let’s go!
Less than 10% of CPAs in tax practice offer any sort of representation services (per AICPA).
Less than 2% of EAs in private practice do anything that even requires their EA license (per NAEA).
The vast majority of lawyers that call themselves “tax attorneys” engage primarily in trust and estate tax work, not IRS Collections representation.
Lastly, there are approximately 400,000 unenrolled preparers (meaning, tax return preparers that are not an EA, CPA, or attorney), that legally can’t sign a Form 2848 to represent a client in front of Collections or Appeals, even if they’re an AFSP participant or a state-registered return preparer.
Add all those folks up, and you have approximately 670,000 tax professionals across the United States that either refuse to engage in taxpayer representation, or are simply unable to do so because they don’t hold the proper license.
But guess what?
All 670,000 of these tax professionals have tax resolution clients.
These are the tax professionals that prepare the majority of the tax returns for the nation’s 13 million tax debtors.
These are the tax professionals that see the payroll or bookkeeping problem long before anybody else does.
These are the tax professionals that know who the future tax debtors are before even the IRS does!
Are you picking up what I’m laying down?
These 670,000 other tax professionals — your colleagues — are coming face to face with tax problem resolution clients all the time. They are at the front line of the tax debt problem, and the vast majority of them don’t know how to help these clients.
That’s where you come in.
Since you hold the proper license, you can sign a 2848. Since you’re here, and have learned how to do tax resolution work, you can provide this valuable service to the clients of other tax professionals.
Let’s do some more math. If you look at IRS Collections data in the annual data book, you’ll see that roughly 1 in 14 American tax returns has a debt and enters IRS Collections. Assuming that 1 in 14 average carries across all tax prep clientele (it doesn’t, but it’s the best proxy I have), and if we assume that an average seasonal preparation firm does 300 returns a year, that means the average tax preparer sees 20 or so tax debtors per year.
Let’s say that half of that 20 can soon full pay the liability. That still leaves 10 clients that this tax preparer needs YOUR help with, either because they can’t or won’t engage in representation.
That’s 10 potential referrals to you. Even if they’re small cases, with an average fee of only $2500, and only 30% of them agree to retain your services, that’s still $7500, from one referral source.
How many tax preparers are there in your ZIP code?
5? 10? 30?
Let’s say you can establish referral relationships with 10 of them. 3 clients per year each, $2500 per client. That’s $75,000 per year.
I think this is a fairly conservative example. We have Tax Resolution Academy® members that are doing six figures per year in just referral revenue from other tax professionals.
Basically, if you’re not doing this, you’re shooting yourself in the foot. If you do absolutely nothing else to market yourself as a tax resolution service provider, do THIS and you will add a nice, healthy “bonus” income stream to your bottom line.
To help you take advantage of this simple, yet effective, marketing opportunity in your practice, I’ve splintered off the Tax Resolution Referral Marketing Toolkit from a much larger course, and am making it available for the first time ever as a stand-alone course. For details on kit contents and to order, head on over hither: