Eva Rosenberg, also known as TaxMama®, shares tips for getting started in tax resolution and what income to expect.
1 min read
Learn. Read the Internal Revenue Manual, especially the parts about representation, like part 5 which is all about collections. Take classes. If at all possible, spend a year or two working with an existing, reputable representation firm with people that have experience doing tax resolution correctly. If you're just starting out, avoid one of those massive shops that are handling things without any oversight or support. That's not the place to start - that's a sink or swim thing.
There are three sources that I recommend:
1. My 2 classes, the Enrolled Agent (EA) Exam Review Course and the Tax Practice Series Course.
2. The classes offered by the NAEA and NTPI.
3. The classes hosted by ASTPS and Larry Lawler's
Those are the three best places to get an education on how to handle tax resolution.
Getting paid is the biggest challenge. You have a lot of people coming to you who are sincerely in trouble and don't always know how they got there. If they can't afford to pay the IRS, how are they going to pay you? Everyone will have a sob story. If you are going to accept their sob story without getting paid, you can't make a living. If you can't make a living, you can't help anybody.
You have to learn how to be firm and insist on getting paid upfront before the work is done. If you wait until after you do the work, the risk is greater
Another challenge is organization. The deadlines in tax resolution are very different than the deadlines for a typical CPA. Every client has their own deadlines. You need to use some kind of tool to stay organized and notify you of the deadlines - I personally do a
If you know what you are doing, you can make money pretty quickly. The first few cases will take longer because there is a learning curve. When you price a case, do not price it below $2,000-3,000. Each case can take between 20-40 hours depending on your experience level. Preparing the tax returns will be priced separately. A tax resolution specialist can take on 2-3 clients a month and do well.
A lot of people that do tax resolution cases are just individuals doing the tax resolution work from home. You can make between $5,000-$10,000 a month with low stress and no extra staff. The biggest danger is having too many clients and having too much work on your plate.
If you want to build a practice that makes over $200,000 a year, you will need a lot more staff to do that.
There is enough work out there within your own community. I would suggest getting involved in your community - through your Chamber of Commerce and by offering education and classes. You want to be the go-to person in your community for tax resolution and representation. I have a friend who teaches classes in her local community and she has more business than she can handle.
I think they've done a phenomenal job at compiling resources for the public. If you go to their website, you'll find incredible information and videos that will give you all the information you need. The stuff is out there, you don't need to talk to someone from the IRS on the phone to find it. You can find it all on their website.
Now that you're convinced you should add tax resolution to your practice, here's a guide to pricing your tax resolution services.
Explore more of our recent Articles, User Stories, and Ebooks.
2 min read
4 min read
Canopy takes the headaches out of client management by offering a way to keep client info organized.
I love how easy it is to setup a new client in this software. Once set up, it's one click to get IRS transcripts downloaded for my review. This saves me at least an hour each week in comparison to the software I used to use.
This makes workflow for tax resolution manageable. This business is a bunch of hurry up and wait. This system helps to refresh my memory while transitioning to different clients.
The ability to securely share documents with clients as well as complete POAs from client contact data already in Canopy. The ability to route workflow between team members with color coded statuses allows us to work efficiently.
Cool features, outstanding customer service, constantly updating to make it better. I love that I can upload files easily to a secure client portal and we don't have to email files anymore. Absolutely can't imagine not having this software.
It's safe and secure. Clients are able to upload documents and the documents are saved their portal which as a result, keeps us better organized. The task feature keeps us organized and we know exactly the status of each client.
Submit this form, and we will be in touch soon to give you a custom demo.
Set a time for one of our product specialists to give you a guided tour practice.