CPA Earning Potential and Tax Season
Tax season may not be the time when you’re thinking about needing more client work, but you should. By proactively considering the challenges your clients will face this tax season and year-round, you could grow the tax resolution side of your business and your annual income along with it.
And now is definitely the time to take the plunge. The IRS doesn’t stop sending out notices or pursuing tax evaders just because it’s tax time. But as your in-office traffic and client interactions increase, so does your ability to get the word out that you can help your clients with more than their tax returns.
Your clients being pursued by the IRS need you more than ever this tax season, and your decision to offer tax resolution services will not only build your business, but help save your clients from having to face down the IRS alone.
Your Clients Need to Know Where to Turn
As notices start to disseminate from the IRS, your clients need to know that you’ve got their back. But the only way they can know about the services you offer is if you tell them. Start sending emails to your clients and getting the word out that you can help. As an IRS Solutions member, you have access to helpful templates like the ‘Just Checking In’ email template and a Marketing Toolbox full of strategies and marketing resources to advertise your services. For example, during tax time, putting a sign on your desk or adding a welcome letter to your tax packet can help spread the word that you can help not only your clients, but their friends and family members with their tax resolution needs.
You can also take preemptive measures. Whether your client is only now being caught for their failure to file a few years back, or they underpaid on their taxes through the year and now owe way more than they can pay, getting a notice from the IRS can put your clients into a panic. If you took the time to have them fill out a Power of Attorney (form 2848) for tax purposes or Tax Information Authorization (form 8821) before they’re notified, you’ll receive the notice as well, so you can reach out and remind them that you’re ready to help.
You Are Worth What You Charge
Notify your clients about the tax resolution side of your business before those IRS notices reach them, and you give them peace of mind—something clients are willing to pay for, according to EA Drew Foster, co-founder of IRS Solutions Software.
“It’s the peace of mind they’re paying for too, not just the fact that you’re giving them an hour worth of work.” But knowing what to charge is key, because, as Drew points out, while tax return services have become a commodity for which customers can shop around, “Not everyone does tax resolution, and people aren’t going to price shop.”
Unlike with tax returns, where you’re legally prohibited from charging fees based on how much you can save your client, you can charge a flat fee for tax resolution services with an agreement that you get a percentage of whatever money you save your client. And you are saving your clients big money, often over mistakes they made unknowingly.
For example, one client decided to take the remainder of what he owed on his mortgage out of his retirement accounts so he could pay off his house. He didn’t realize that the $300,000 he withdrew would be counted as income and subject to income tax. His tax preparer, equipped with IRS Solutions software, was able to negotiate with the IRS and have him placed in an uncollectible status to keep him from losing his house and all that he’d worked for.
That’s why you need to charge based on your value and talk about your value to your clients. You have the education, and with IRS Solutions, you’ve purchased the tools to make sure you can resolve your client’s IRS woes. By doing that work, you’re helping people not only with their finances but also with their livelihood, which has a positive impact on their families and lives. You should feel good about offering tax resolution services.
“You should value that as part of what you’re charging for,” said David Stone, EA and co-founder of IRS Solutions Software. “Not every accountant is willing to put in the time to better themselves so that they can help their clients.”
How IRS Solutions Can Help
IRS Solutions has FREE Tax Resolution Pricing & Marketing Survival Guide to build your menu of services and help you figure out what to charge. We also offer a Tax Resolution Calculator to determine how much you could boost your annual income by offering these services to your clients.
To get started, visit our website and enter your info to get a download link. IRS Solutions is available in affordable monthly and annual subscriptions so you can serve your clients year-round by providing tax resolution services with confidence.
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