Did you know a taxpayer can authorize anyone to help them resolve their debt with the IRS? That’s right—no matter what your tax preparer status, you can add tremendous value to your business by offering IRS tax resolution services. “Not a lot of accountants offer tax resolution services yet. Offering IRS tax resolution enables you to be much more competitive,” explains Suzanne Stone of IRS Solutions™ Software.
Demand for IRS Tax Resolution Services is Off the Charts
In today’s economy, 25% of Americans are behind on at least one bill. When forced to make a choice about what to pay, it’s no surprise that most will prioritize immediate needs such as rent and electricity over paying their tax debt. This decision, however, can lead to devastating long-term repercussions. Offering IRS tax resolution services empowers you to advocate for taxpayers and save them from financial disaster. “Most likely, you will already be working with someone to file their taxes. If that person has an IRS issue, they can go to you directly to get help—someone they already know and trust,” says Drew Foster, Co-Founder of IRS Solutions. Adding IRS tax resolution services to your portfolio is a win-win for both you and your clients; it provides assistance to those in need and generates offseason income for your practice. This article walks you through the process of getting started in IRS tax resolution services so you can begin helping more taxpayers and expanding your practice today.
Use These Steps & Tax Resolution Forms to Get Started
Step 1: Apply for Your EFIN
In order to download IRS transcripts for a client, you will need an Electronic Filing Identification Number (EFIN). You may already have an EFIN if you have electronically filed taxes for someone in the past. Otherwise, you need to apply for one here.
Step 2: Obtain a CAF Number
If you’re new to tax resolution, you will also need the IRS to assign you a Centralized Authorization File (CAF). Luckily, you will be automatically assigned a CAF number the first time you file a Form 8821 (Tax Information Authorization) or Form 2848 (Power of Attorney) for your first client. When prompted for your CAF number, write “none” on the form and in 7-14 days, the IRS will mail it to you. While you’re waiting, take advantage of the webinars and educational information we’ve compiled here so you can hit the ground running once you’ve been registered.
Step 3: File a Collection Information Statement
The first step in solving your client’s tax resolution case is to file a Collection Information Statement, either Form 433-A, A(OIC), B, B(OIC), or F. Which version you file will depend on the solution you wish to achieve and the nature of your client. Form 433-A, for example, is used to obtain current financial information necessary for determining how a wage earner or self-employed individual can satisfy an outstanding tax liability with an installment agreement or currently-not-collectible status. This form is typically used when the taxpayer is working with a Revenue Officer. Form 433-B is used for businesses that owe federal taxes and cannot pay outright. Form 433-F is used for any taxpayer—business or individual—in need of an installment agreement or currently-not-collectible status, and is typically used when calling the IRS Automated Collection Service (ACS). Finally, in order to file an offer in compromise, you would fill out a Form 433-A(OIC) for individuals or a Form 433-B(OIC) for businesses.
Forms At A Glance:
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- Form 8821 (Tax Information Authorization) Grants the IRS permission to disclose a client’s confidential tax information to an unlicensed tax professional. Anyone can use this form. It is provided for convenience and its use is voluntary. This information is used by the IRS to determine what confidential tax information your appointee can inspect and/or receive. This provides access to information only, without the ability to represent.
- Form 2848 (Power of Attorney) Gives licensed tax professionals (EAs, CPAs or attorneys) access to information and the ability to represent their client before the IRS. The person authorized must be eligible to practice before the IRS.
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Collection Information Statements
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- Form 433-A : Wage earner or self-employed individual
- Form 433-A(OIC) : Wage earner or self-employed individual offer in compromise
- Form 433-B : Business
- Form 433-B(OIC) : Business offer in compromise
- Form 433-F: Both for installment agreements or currently not collectible
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Finding The Right Tax Resolution Software is Critical
Whether you’re just starting out or a seasoned tax resolution professional, the key to success is having the right tools at your disposal. “The most important part of solving any tax resolution case is being able to quickly get the transcripts and all of the other information you need,” explains David Stone, Co-Founder of IRS Solutions Software. “A tax resolution case may involve pulling many years worth of tax history. One of my biggest frustrations when I started was the lengthy process of downloading transcripts directly through the IRS’s website. Through their site, you have to download them one at a time, open them up, preview, print, and save as a PDF…sometimes you have to go through multiple tax periods which requires hours of time spent to manually download and ensure you have every year saved.”
The tax resolution software you choose can make or break your success. IRS Solutions Software is known as “The Tax Pro’s Best Friend” for good reason. The software provides invaluable support to tax professionals such as fill-assistance for forms like the laborious Form 433 above. It calculates amounts owed each year as well as the collection statue date. It can show you whether or not your clients qualify for a First Time Abatement. The Client Portal allows you to send clients forms where they can input their own information. Data is securely stored and transcripts are laid out in an easy-to-follow way that empowers you to find the best solution for each client every time. “This software not only walks you through the onboarding process, it actually helps you solve any collection case within minutes instead of hours,” marvels Drew Foster.
Tax Resolution Will Increase Your Earning Potential
As expected, adding to your portfolio means increasing your value and it can be intimidating to charge what you’re worth when you first start out. But, partnering with a software and education provider like IRS Solutions gives you the confidence of an experienced pro and empowers you to price your services accordingly. That’s because IRS Solutions fastracks your collection cases, providing turnkey solutions and step-by-step walkthroughs so you can resolve each case quickly and efficiently—without any doubt. Memberships come with access to the Marketing Toolbox, IRS Solutions Facebook community, amazing customer support, and ongoing education with FREE CPE credits. IRS Solutions Software provides a start-to-finish support system complete with all the tools you need to succeed in tax resolution. So…what are you waiting for? Follow that feeling and get started today!
