Tax resolution is an umbrella term for services that assist taxpayers who have run into problems with the IRS. Tax resolution services, also known as IRS representation, tax problem recovery, or tax controversy, are in high demand. These services include assistance with offers in compromise, lien and levy relief, penalty abatement, and more. Later, we’ll go over common types of tax resolution in greater detail.
Why should you provide tax resolution?
There are numerous compelling reasons why tax professionals across the country are increasingly offering tax resolution services, but let’s focus on the top three.
- Non-seasonal earnings
People who have IRS issues require assistance all year, not just from February to April. Rather than having to earn the majority of your income during the few months known as “tax season,” providing tax resolution services allows you to earn a consistent income throughout the year.
- Enhanced satisfaction
Even in an industry where numbers are everything, quantifying something like satisfaction is difficult. However, almost all tax professionals agree that tax resolution company work is far more satisfying (not to mention less repetitive) than tax preparation.
If three reasons aren’t enough, we have an eBook with a few more.
How to begin providing tax resolution services?
Obtaining certification to represent clients in front of the IRS and provide tax resolution is a simple process, especially if you are already a certified enrolled agent, CPA, or attorney. Let’s go over the four steps you’ll need to take to become certified to provide tax resolution services.
Enroll as an enrolled tax preparer
To properly represent your client, you must complete IRS form 2848 and obtain power of attorney for your client (covered in more detail below). The IRS will only grant power of attorney to enrolled agents, CPAs, and attorneys, so your first step should be to obtain the necessary professional certification. If you are not already a CPA or an attorney, your best option is to become an ea, which requires no additional education.
Get a power of attorney
Power of attorney is the only other legal document required to do tax resolution work (form 2848). You have the legal right to represent your client before the IRS if you have power of attorney. Each client will need to file a new power of attorney.
Learn the trade
Although becoming certified to provide tax resolution services is a relatively simple process, the work itself requires some learning on your part. Fortunately, there are numerous resources available to assist you in learning how to assist your clients in resolving their tax issues. In addition to traditional learning methods such as conferences and webinars, the internet provides a wealth of excellent, easily accessible tax resolution information. Blog articles and eBooks are excellent resources for learning about tax resolution.
It’s also a good idea to look into good tax resolution software. Good tax resolution software will make your life easier by performing all of the complex computations, recommending the outcomes that are most likely to be accepted by the IRS, and keeping track of ever-changing tax codes for you.