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Tax Resolution Services: Benefitting Your People & Your Practice

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If a client comes to you with a tax problem, are you prepared to help? The fact is, the collection division of the IRS employs 14 million people to help catch mistakes, but fewer than 4,000 firms and practitioners offer tax resolution support to their clients.[1]

If you’re not offering tax resolution services, your firm may be selling itself short.

High demand, low supply

Experts are saying that the tax preparation business is winding down. Many 1040 tax practices are losing business to affordable tax software and low-cost, high-volume providers. Transactional services don't help with client retention, but value-added services can help you maintain clients throughout the year. And tax problem resolution is the hottest space in the tax market today.

Over the years, the number of taxpayers with problems has risen exponentially. Approximately 19 million owe the IRS a combined $391 billion.[2] See the opportunity? Your firm has an avenue to bring real financial and life-changing value to your clients — rather than just handling their returns. Think of it as another way to solidify yourself as a strategic advisor and position your firm for greater success.

Real financial value to your clients — and your firm

CPA’s, Enrolled Agents and Tax Attorneys are uniquely qualified and licensed to offer these specialized services — and take advantage of the mutual benefits.

  • Increase your revenue. When you consider that the average fee for tax resolution can be up to $5,000 and more,[3] you can earn double to triple your current hourly rate. You’ll also open the door for steady year-round revenue, not just during the busy tax season.
  • Loosen up deadlines. The deadlines given by the IRS regarding tax resolution clients are more flexible than compliance work, so you’re not bound to April 15, June 15, etc.
  • Get a return on your investment. Tax resolution clients expect to pay in advance, so you can save significant time by eliminating collection calls.
  • Leverage your resources. Did you know that most tax resolution tasks can be performed by unlicensed staff? By properly training your staff members, you can free up your time to focus on other areas of your practice.
  • Level the playing field. Become the tax resolution go-to, and you’ll turn former competitors into referral sources for your new offering.
  • Use larger firms to your advantage. National companies create public awareness that practitioners can help with IRS tax and compliance issues. And many people prefer the convenience of working with a local CPA, rather than a large national firm.
  • Be a hero. With so many burdensome requirements by the IRS, you’ll help clients reach practical solutions to limit the debt they’ve already amassed.

Align yourself with the right vendor

When dealing with tax resolution cases, strong relationships with service providers can help strengthen your clients’ cash flow and provide critical incremental value for your firm. That’s why outsourcing payroll to a company like ADP® can help your clients better manage their money and comply with the IRS rules — and ultimately help you provide better service.

ADP also offers revenue sharing when you refer a client for payroll, so you can continue to provide trusted tax services while ADP does the rest. And if you’re already offering payroll as a service and curious to see how much it is worth, ADP can help determine the value of your portfolio, manage your transitions and guide you and your clients through the process.

Find out more about tax resolution, and why it makes sense to offer your clients a well-rounded suite of services. Download Tax Problem Resolution: More Value for Clients & Revenue for Your Practice.

[1] IRS Data Book, 2016

[2]IRS Data Book, 2016

[3]Results can vary based on each tax resolution case and cannot be guaranteed

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