In 2019, the estimated tax gap (amount of uncollected taxes) totaled over $554 billion. IRS Commissioner Chuck Rettig estimates that that number has since increased to $1 trillion dollars—yes—that’s trillion with a “T”. So, it should come as no surprise that the government recently announced a plan to hire over 87,000 new IRS workers to assist in going after those who have been evading or not paying their taxes. That’s bad news for many taxpayers…but great news for those in the tax resolution business. The number of tax resolution cases is expected to skyrocket over the next decade. Know the difference between cp501 vs cp2501.
A Huge Opportunity for Tax Professionals
Tax professionals have been given an unbelievable opportunity. You’ve been given a life-changing chance to bring on clients who genuinely appreciate your services, to find more fulfillment in your career, to work smarter not harder, and to finally move beyond the monotony of tax returns. Solving just one tax resolution case can generate ten times the amount of income you can get from filing one tax return. Imagine working less and making more just by offering tax resolution. What’s better is, with the right tools and guidance, you can start taking on cases immediately. Do not miss out on this unprecedented opportunity to transform both your business and your life as a Tax Resolution Specialist.
The Key to Getting Started & Growing Fast
If you’re ready to get started and grow quickly, there is one thing every Tax Resolution Specialist needs to embrace: Predictable Case Communication. Predictable Case Communication means utilizing templates and guides so you are never reinventing the wheel or working from scratch. This will be your secret weapon strategy and it’s critical that you invest in a support system like IRS Solutions Software that offers Notice Response templates, ready-made letters, done-for-you emails and more so you can maximize efficiency, minimize the learning curve, and hit the ground running.
Predictable Case Communication for Notice Response
That’s why members of IRS Solutions Software get access to over 40+ different notice responses crafted for any situation your client might find themselves in. IRS Solutions Software covers both personal and business tax notice solutions so you can assist any client—resolving your case in minutes, not hours.
“Gone are the days where a client calls and I scramble for answers. With IRS Solution’s step-by-step Notice Resolution templates, I know exactly what the notice means, what the IRS is looking for, how to help my client and what to charge.” — IRS Solutions Member
cp501 vs cp2501 and other IRS Notice Response Templates available in IRS Solution’s Software:
AUDITS AND BALANCE DUE
- CP2000: The information the IRS has on file doesn’t match the information you reported on the tax return.
- CP2501: The IRS has received information not reported on the tax return.
- CP3219A: The IRS received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax.
- CP14 (CP14 to 508C): The IRS sent this notice because there is money owed on unpaid taxes.
- Letter 1058 – LT11: Notice of Intent to Levy (Final Notice) This notice is telling the taxpayer that the IRS intends to issue a levy(garnishment).
- CP504: This is the final notice before the IRS takes enforcement actions. The IRS could seize (levy) their assets and apply it to the amount owed.
- CP501: There is a balance due on the taxpayer’s account. The IRS can file a Notice of Federal Tax Lien, and/or seize(“levy”) the taxpayer’s property.
- CP508C: The IRS has certified to the State Department that the taxpayer’s tax debt is seriously delinquent.
PRO TIP: Become especially familiar with these top 3 IRS Notice Responses: CP3219A, CP504, CP14 & CP2000 (it’s a tie).
RESOLUTION/PENALTY ABATEMENTS
- CP162: The IRS charged the S Corporation or Partnership a penalty for failure to file the 1120S or 1065.
- First Time Abatement -FTA: Using the first time abatement or FTA to abate an IRS penalty.
- Reasonable Cause Penalty: Reasonable cause allows the IRS to provide relief from penalties.
“I was at a business gathering chatting to a fellow business owner. He found out that I was an accountant and shared with me that he just got a letter from the IRS that he was delinquent for penalties for not paying payroll deposits on time. We were able to help him out. He came in and showed me the notice and within 15 minutes using IRS Solutions Software, I was able to get a letter off to the IRS using the IRS Solutions Software and within a month he received a letter of Penalty Abatement. He was ecstatic. All I had to do was enter the client’s name, enter the notice number, and the software told me the steps to take to solve the case.” —David Stone, Co-Founder
Predictable Case Communication for Clients & Leads
This strategy of Predictable Communication extends beyond your communication with the IRS—it applies to your administrative duties and marketing as well. That’s why our Marketing Toolbox contains tons of premade, easy-to-customize resources for your practice’s day-to-day operations.
A sample of white label templates available in IRS Solution’s Marketing Toolbox:
- Tax Appointment Checklist: Send this checklist to clients before their tax appointment
- How Can I Help Infographic: An informative one-sheet to be customized and included in a client’s onboarding paperwork
- Remote Filing Email: Explains what clients can expect from “remote filing” this tax season
- People First Email: Highlights the key points of the IRS People First Initiative
- Stimulus Check Email: Reminder to file in order to receive an Economic Impact Payment
- Tax Appointment Reminder Email Graphics: Use these banner images in emails to remind clients about upcoming appointments
- Tax Appointment Reminder Email: Text to place in automated or manual appointment reminder emails
- Check-In Email: Text to place in automated or manual follow-up emails
PRO TIP: To learn more about marketing your tax resolution services, check out this article: Secret #1: The Marketing Toolbox for Rapid Tax Resolution Growth.
What to Expect as a Tax Resolution Specialist
As a Tax Resolution Specialist, you will grow both personally and professionally. By utilizing pre-made communication solutions like those outlined above, you’ll be able to work less and make more. You’ll also find more time for yourself and spend less time working for unappreciative tax filing clients. Earlier we mentioned, “clients who genuinely appreciate your services.” Many tax pros can’t even fathom what this means. Most days, it probably seems like all your filing clients do is gripe about their bill after demanding so much of your time. Clients that reach out to you for tax resolution on the other hand, understand and appreciate the value of your services because you’re giving them peace of mind. They just want their collection cases to be solved so they can move on with their lives. No one wants to deal with the IRS, but you as a tax pro have the unique ability to solve cases quickly and efficiently, while defending a taxpayer’s hard-earned money.
“I had a client that owed $100k originally and he was on an Installment Agreement. He had been paying it down for 3 years. I was looking at the penalties and realized I could do a first-time abatement for him. So I called the IRS and they denied it. Instead of quitting, I went into the software and pulled the transcripts. Within minutes the software told me that he indeed qualified for it. Once I knew it was an option for him, it probably took me about 1 minute to fill out the First Time Abatement letter that comes with IRS Solutions Software. I mailed it into the IRS and 9 months later I got a letter back from the IRS saying they abated $28k in penalties. He was incredibly overwhelmed with gratitude.” —Drew Foster, Co-Founder
Find Your Tribe
As you embark on this journey, remember to set yourself up for success by finding the right support system. From interactive case-study webinars, to our members-only Facebook group, to CPE classes and more, you can always lean on the experts at IRS Solutions Software should questions arise. Just like Drew explained above, when dealing with the IRS, you cannot just take “No” for an answer. In many circumstances, you will need to push past the first answer and as long as you have IRS Solutions on your side, the software will always guide you to the right solution for your client.
