Tax resolution refers to services that help taxpayers who run into problems with the IRS. Tax resolution services are also known as IRS representation, tax problem recovery, or tax controversy. These services include an offer of compromise assistance, lien and levies relief, penalty abatement, and many more. Later, we'll discuss common tax resolution methods.
Why You Should Offer Tax Resolution?
There are many great reasons why tax professionals across the country offer tax resolution company services. But let's just take a quick look at two of the most important.
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Non-Seasonal Income
IRS problems can be addressed all year round. Instead of having to make the most of your income during tax season, offering tax resolution services can help you earn a steady income throughout the year.
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Increased Satisfaction
It's hard to quantify satisfaction in an industry that values numbers. Tax professionals agree that tax resolution work is more rewarding than tax preparation.
Get Paid for Tax Resolution Services
It's unlikely that you're looking for tax resolution at no cost. Therefore, it is important to have a plan as to how much you will charge and how you'll collect payments from your clients.
Pricing
Pricing your tax resolution services is not an exact science. There are however some principles that you can use to determine how much you should charge clients.
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Find out How Much Your Service Is Worth
What value do you provide to your client? It is difficult to quantify relief, but it is possible to give an exact figure for the amount of money your client has saved. Your pricing should reflect this.
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Know Your Market
It's not enough to see what other tax professionals charge for their services. Knowing your market is important. It's important to consider your client base when deciding on pricing.
Are your clients primarily struggling with simple issues and have limited budgets? Flat fees might be the best pricing option for you. Are you a frequent client of wealthy clients or businesses with complex financial situations? You might be able to get enough for your services by setting up a per-hour pricing model.
Collecting Payment
It can be difficult to collect a payment, especially if you are working with people who already struggle under the burden of their IRS problems. You can reduce stress by getting partial payment before you start any work.
Common Types of Tax Resolution
Installment Agreement
An installment agreement allows the taxpayer to agree to pay their entire debt in monthly payments over a period of at least six years. This allows the taxpayer to make small payments that are manageable so the debt is not overwhelming.
Partial Payment Installment Agreement
Partially payment installment agreements, also known as PPIA, are similar to an installment agreement. However, a combination of the statute of limitations with the taxpayer's ability to pay means that the tax debt does not have to be paid in full.
OIC
The IRS offers an offer in compromise (OIC), which allows taxpayers to settle their debt for less money than they owe. Although this option can be a great one for taxpayers, it also gives them the opportunity to make a new start with the IRS. However, the ultimate goal of an Offer in Compromise is to reach a legal agreement for payment that is in both the taxpayer's best interests and that of the IRS.
