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Tax Resolution, also known as Tax Controversy, is a specialized area of practice which helps taxpayers negotiate with the IRS or State to resolve their delinquent tax debt(s).

Stop Selling a Commodity

A traditional tax practice is lucky to be busy 6 months of the year. Traditional tax practitioners are selling, in general, an indistinguishable commodity. Until a taxpayer has a bad experience and realizes why some accountants charge more than others, they will always shop around for the best “deal” when looking for regular tax and accounting services.

Expand Your Client Offerings

Distinguish yourself from the typical tax guys with value added services.  Be the COMPLETE expert your clients need and stop turning away clients with collection issues because you think these cases are too hard to handle or because you don’t have time.  We will show you how anyone has the time when you consider the reward.  Be a hero to your clients when you get a levy released, have a wage garnishment stopped, and stop the threatening letters from the IRS and State that your clients dread to receive. Help them sleep better at night and they will stick with you forever.

IRS Collection Activity is Constantly Occurring

In fiscal year 2016, the IRS assessed over 39.5 million civil penalties amounting to over 27.3 billion dollars owed. Of the penalties assessed, 5.2 million penalties were abated amounting to almost 9 billion dollars in savings to delinquent taxpayers.

In fiscal year 2015 alone,

  • 515,247 Federal Tax Liens were filed.
  • 1,464,026 3rd Party levies were requested.
  • 426 accounts had assets seized.

Delinquent Taxpayers are in need of specialized help all over the country. Why turn down clients with collection issues when…

It is Getting Even Easier to Solve IRS Tax Collection Issues

Coinciding with lowered requirements to qualify for an Offer in Compromise, record levels of Offers in Compromise have been accepted in recent years. In 2016, 63,000 offers were submitted to the IRS. 27,000 (43%) of those Offers were accepted, amounting to almost $226 Million.

The IRS has also relaxed installment agreement rules for another year, decreasing the amount of information required to be submitted for lower liabilities.

The Tax Resolution Institute has a 95% Offer in Compromise acceptance rate. We are extremely familiar with the intricacies that make the difference between an offer being accepted or rejected.

Bill for Knowledge, Not Time

Tax Resolution is a service which commands a premium price because few know how to do it properly.

Work is not generally done at an hourly rate, but on a flexible fixed fee in the form of a retainer.

The average industry price for preparing a streamlined installment agreement ranges from $1,500 to $2,500. If you are well versed in this type of work, you can complete the job in a few hours. This makes your effective billable rate $500 or more. Not too shabby.

The average industry rate for preparing and submitting an Offer in Compromise ranges from $5,000 – $15,000 depending on the scope of the delinquency (not the amount owed). Clients with well-organized documentation will take less time than clients that bring you receipts in a shoebox, and your fee should reflect that.

Many Tax Resolution Clients are Repeat Offenders

The three most common professionals with tax collection issues are real estate brokers, attorneys, and self employed (Schedule “C”) taxpayers. These types of businesses earn money sporadically and are not always ready to pay their estimated tax payments.

It starts small.  Maybe missing an estimated tax payment. The taxpayers tell themselves “I will make up for it on the next payment”, thinking that the “the big one is just around the corner.” But many don’t and eventually the IRS catches up.

When people face the threat of the IRS or even worse, they are happy to pay someone to handle their unfiled returns and negotiate an installment agreement or offer in compromise.

To top it off, you can often get more business because, in a few years, they come back having put themselves in the same situation.  Be sure to put resolution client files in the back of the cabinet as opposed to throwing them away, because you will be pulling them out again.

Sign up for a TRI Membership and get all the resources you need to become a successful tax resolution specialist.

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