If you’re currently offering tax preparation and planning services for your clients, but you’re looking for new opportunities to build your business or elevate your practice, consider offering tax resolution services. By taking this step to add these services, both you and your clients can experience several benefits.
To help you determine if offering tax debt resolution is right for you, we’re providing an overview of the services typically included in tax resolution, the benefits of offering these services, and how to become eligible to offer them, if you aren’t already.
What Are Tax Resolution Services?
Tax resolution services help individuals and entities address and solve issues with the IRS (as well as state and local tax agencies), reduce tax debt, and assist with issues such as collections, wage garnishment, and property liens. This is also an umbrella term for services provided on behalf of taxpayers, including:
- Negotiating with the IRS to settle unpaid taxes or outstanding balances
- Setting up payment arrangements to help clients pay off their tax debts over time.
- Filing for offers in compromise, which allows clients to settle their tax debts for less than the full amount owed
- Filing back taxes for previous years
- Representing clients and assisting during tax audits
- Applying for penalty abatement to reduce or eliminate penalties for late payments or filing
- Applying for innocent spouse relief to protect clients from being held responsible for their spouse's tax debts
Why expand your business to offer tax resolution services?
Now that you have a better idea of what kind of services you could offer, why should you? Consider these five benefits to offering tax debt resolution to your clients.
Provide More Value to Clients
Clients appreciate a one-stop-shop rather than having to turn to different people for different services. By offering tax resolution services, you can address more of their challenges and provide more comprehensive support. This added value can improve client satisfaction and loyalty, as they know they can rely on you for all their tax-related concerns.
Attract More Clients
Expanding your services can help attract clients who need more advanced tax assistance, especially people already struggling with tax debt, wage garnishment, or are facing an audit. Many individuals and businesses with these significant tax challenges seek professionals who can provide specialized help. By marketing your tax resolution services effectively, you can draw in new clients and grow your practice.
Increase Revenue
Expanding into tax resolution services can significantly boost your revenue. These services often command higher fees due to their complexity and the expertise required. By offering solutions to clients facing serious tax issues, you can tap into a lucrative market and diversify your income streams.
Enhance Professional Prestige
Offering advanced tax resolution services can elevate your professional standing. Clients and peers will recognize your expertise in handling these more complex tax matters, enhancing your reputation as a skilled and proficient tax professional. Building your reputation in this way can lead to more referrals and opportunities within the industry from tax professionals who may not be able to offer tax resolution services.
Genuinely Help People
One of the most rewarding aspects of offering tax resolution services is the opportunity to make a real difference in your clients' lives. Helping clients resolve their tax issues can relieve significant stress and financial burden, leading to positive outcomes for their personal and professional lives. This genuine impact can be incredibly fulfilling, especially as you’re helping people within your community.
How to Offer Tax Resolution Services
Once you decide to begin offering these services, you’ll need to make sure you’re set up for success. Follow these steps to begin your new path as a tax resolution professional.
Hold the right tax credential
To start offering tax resolution services and represent clients before the IRS, you need to either have a CPA license or hold an EA credential. Enrolled Agents have demonstrated tax knowledge and unlimited representation privileges before the IRS, so you must have this before offering tax debt resolution if you don’t have your CPA license.
To become an EA, you must follow these steps:
- Get a PTIN from the IRS (which you should already have if you’re currently offering tax services)
- Pass all three parts of the Enrolled Agent Exam
- Apply for your credential and submit to a background check
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If you already have a credential that allows you to represent clients before the IRS, you can take the next steps to build out your business.
Become a Certified Tax Representation Certification
A Certified Tax Representation Consultant certificate shows you also have advanced tax resolution knowledge related to IRS audits, collections, payroll tax, and more. This not only builds valuable skills, but it will also add an extra layer of trust and proven competency to prospective clients.
Prepare for success
Don't forget to lay the groundwork for a successful business. Consider taking these steps to get your name out there as a tax resolution service provider:
- Build a network of contacts within the IRS: Establishing relationships with IRS personnel can facilitate smoother negotiations and resolutions.
- Invest in the right tools and software: Utilize specialized software to manage and streamline tax resolution cases efficiently.
- Market your new services effectively: Promote your expanded offerings through your email list, social media, and other channels to reach potential clients in need of tax resolution assistance.
By taking the necessary steps to offer these services, you can enhance your practice and make a significant impact on your clients' lives.
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