Tax Resolution Blog
The IRS Solutions’ blog is filled with tax pro solutions and the latest IRS tax news, insights, and information about tax resolution.
Understanding the Difference Between a Levy and a Lien
Knowing the difference between a levy and a lien helps CPAs, Enrolled Agents, and other tax pros guide their clients through the successful resolution of challenging IRS cases. Proper guidance based on a clear understanding of IRS levy vs lien can make the difference between financial stability and continued stress for your clients. What is a Tax Lien? An IRS tax levy is when the IRS actually seizes a taxpayer’s property to satisfy a tax debt. Unlike a lien, which is a claim against the property, a levy means the IRS takes possession of the assets. This can involve seizing bank accounts, garnishing wages, or taking other property
New Wage and Income Transcripts Summary Tool Simplifies Transcript Analysis
In-depth analysis of wage and income transcripts is a critical skill for every tax resolution accountant and anyone preparing taxes. These documents paint a comprehensive picture of a taxpayer’s financial history – but comparing and interpreting them can be a challenge. That’s why IRS Solutions® is introducing the Wage and Income Transcripts Summary Tool, a groundbreaking feature that makes wage and income transcripts analysis faster and more insightful than ever before. Designed for precision and efficiency, this tool will transform the way accountants, enrolled agents, and tax resolution specialists approach the task. By offering a side-by-side presentation of income-related data, including W-2, 1099, and withholding information across multiple years, the
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Tax Season Stinks: How IRS Tax Pros Can Work Less
If you’re struggling to keep up with this chaotic tax season, you’re not alone. Just about every tax professional feels overworked and underappreciated around this time—but this year— it’s exponentially worse. New legislation coupled with the rising popularity of free online returns has exacerbated the problem to the fullest extent. What’s the solution for IRS tax pros? It’s time for all tax professionals to rethink their business strategy and learn how to work less for more. Chaos is the Tax Business IRS tax pros are more stressed out than ever thanks to new and retroactive tax laws, congressional gridlock, and unpredictable state changes. Confusion over deductions, deadlines, stimulus payments, PPP issuance and ever changing laws abound. Even rules regarding
What to Know When Your Client Owes IRS Money
Tax season is here and it’s about to get real. 2020 was perhaps the most unpredictable year of our lifetimes. As a tax pro, you should get ready to tackle unforeseen circumstances and have creative solutions in your back pocket to help when your client owes IRS money. Here’s your IRS for tax pros guide: Time is of the Essence Remind your clients that if they are not going to file on time, that they should at least file an Application for Automatic Extension (Form 4868) to avoid a Failure to File penalty if there is a on a balance due. The Failure to File Penalty is 5% per month for up to 5 months. For clients already working with
Guidance for Tax Pros: Offer in Compromise vs Installment Agreement
When your client is ready to pay down their tax debt, they’ll be looking to you for expert guidance. Instead of floundering under a pile of paperwork and forms, let IRS Solutions™ help you collect important information and compare resolution options of offer in compromise vs installment agreement so you can make the right decisions for your client. Understanding Available Options Oftentimes, clients will be distressed when they come to you for help with back taxes. This is understandable, because the “unknown” is especially frightening. You can help put their mind at ease by educating them on the options available. Of course, before you can provide recommendations, you’ll need to perform an analysis of their financial situation. Drew Foster
How to Succeed as Tax Resolution Professionals
The coronavirus has taken a toll, and the economic impacts are already being felt. Amidst unemployment, real estate forbearance, medical bills, and job changes, the last thing taxpayers want to think about is the tax season. This is precisely why tax resolution professionals need to prepare on their behalf. Today’s article discusses how to succeed as tax resolution professionals in a post-pandemic world and how tools like IRS Solutions can help with IRS forms and processes. We’re also reviewing the most common IRS repayment options, so you can come to the table fully equipped and ready to help. How to Prepare Your Tax Resolution Business With all that people have been asked to deal with this year, you
Getting Started in IRS Tax Resolution Services 101
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
How to Get Tax Resolution Clients
As financial stresses have risen in American households, many of your tax clients have put off dealing with IRS responsibilities in order to pay for more immediate concerns. But as time goes on, these IRS issues will compound, leading to more serious monetary trouble, marital strife, depression, and more. At this moment, tax professionals are in a unique position to help clients address their debt to the IRS and pave the road to recovery. Tax resolution not only brings relief to these families, but it comes with the added benefits of increasing your value and your bottom line. Seek Out Your Opportunities To begin discovering tax resolution clients amongst your existing clientele, you must make it a priority to
Increase Accounting Services Offered to Your Clients
You are well-versed in a variety of financial services, ranging from bookkeeping and securing loans to tax planning and tax resolution services. However, there’s a common misconception that accountants and other tax professionals only handle taxes. This is often because financial experts are reluctant to promote themselves and discuss all the accounting services offered. But now, more than ever, it’s crucial that you communicate your expertise. Without proper communication at opportune times, your clients will never know all the ways in which you’re qualified to help them. An Economy in Trouble The COVID-19 pandemic ravaged our economy, causing the national unemployment rate to soar while simultaneously stunting sales and manufacturing. With reports of over 100,000 small businesses closing their doors
A Tax Professional’s Bankruptcy Accounting Guide
As 2024 continues, bankruptcy attorneys are gearing up for an especially busy season ahead. With 30 million people collecting unemployment in the US, it is estimated that over 7 million people are behind on their car payments, with 1 in 3 people unable to pay at least 1 bill. Our nation is facing extraordinary times and at this moment, tax professionals have a unique opportunity to restore hope for many of those facing mountains of debt. Here are some tips and bankruptcy accounting guide for tax pros: How A Tax Pro Can Help: A Bankruptcy Accounting Guide Regardless of whether one’s financial hardship has been brought on by poor money management, bad investments, unexpected emergencies, or an economic crisis,
IRS Marketing Toolbox for Rapid Tax Resolution Growth
Expanding your practice to offer tax resolution services is an exceptional way to bring in a new wave of clients and better serve your existing customer base. It also comes with the responsibility of getting the word out, and advertising yourself and marketing your new services might seem intimidating. Don’t stress. That’s exactly why IRS Solutions™ created our Tax Resolution and IRS Marketing Toolbox. As a member, you not only get access to our easy-to-use software, educational webinars, and expert consultants, but we also help you build your business. We are here for you, committed to being a partner in your success. Below you can get a glimpse of just some of the incredible resources that can be found in our
3 Ways to Drive Accounting Business Growth
If you’re a CPA, tax professional, or enrolled agent looking to boost your accounting business growth, you need to have a strategic plan in place. Here are three effective strategies that can help you drive accounting business growth: Start Building Rapport The first step to driving accounting business growth is to establish a strong relationship with your clients. Reach out to them via email, phone, or video call to let them know that you’re there for them. Use the COVID-19 email templates available in your Marketing Toolbox to keep them informed about any changes in your hours or how you can be reached. Being open to phone calls or even video calls can be a great way to provide in-person
CPA Earning Potential and Tax Season
As a CPA, tax professional, or enrolled agent, your earning potential is a critical aspect of your career growth. Tax season may not be the first thing on your mind when it comes to increasing your income, but it should be. By being proactive and anticipating the challenges your clients will face, you can grow your tax resolution business and boost your annual income in the process. Now is the perfect time to expand your services and help clients with more than just their tax returns. While the IRS doesn’t take a break during tax season, your in-office traffic and client interactions increase, providing you with more opportunities to showcase your skills and promote your additional services. Your clients who
Do You Have to Be an EA or CPA to Represent a Client with the IRS?
As a CPA, you are in a unique position to offer valuable tax resolution services to your clients. However, you may be wondering if you need to hold additional credentials, such as an Enrolled Agent (EA) or attorney, to represent your clients with the IRS. The truth is, while having additional credentials can be beneficial, it is not always necessary. The IRS allows CPAs, along with other tax professionals, to represent their clients in certain tax matters. The key is to understand your limitations and what you are allowed to do on behalf of your clients. For example, as a CPA, you can represent clients in audits, appeals, and collection proceedings before the IRS, but you may not be able
Assisting Clients Facing an IRS Tax Levy: Essential Strategies for CPAs, Tax Pro’s, and EAs
Dealing with an IRS tax levy can be an overwhelming and frightening experience for taxpayers. By the time the IRS issues a levy, many individuals feel as if they’ve already lost the battle. They may be plagued by questions and concerns, unsure of who to turn to, or even uncertain if there’s any assistance available to help them navigate this challenging situation. As a CPA, tax professional, or enrolled agent, you play a critical role in providing support and guidance to clients facing an IRS tax levy. Whether your client is already in crisis or showing warning signs that an IRS levy notice may be imminent, you have the expertise and knowledge to become their go-to resource for help. To
The Key to Solving an IRS Penalty Abatement
There are instances when failing to file or pay taxes on time is unavoidable, but the IRS does not hesitate to assess penalties and interest on your clients until their taxes are filed and their bills are paid in full. Understanding the intricacies of IRS penalty abatement can significantly expand the tax resolution services you offer and save your clients a substantial amount of money as they work to get back into good standing with the IRS. Reasonable Cause If your client was unable to file or pay due to personal circumstances beyond their control, you can file for a Reasonable Cause abatement. The IRS will consider any reason as long as you can prove that your client used
How to Grow Your Practice with Tax Resolution Services
Taxes are an inevitable part of American life, and as a tax professional, you’re already providing valuable assistance to your clients in filing their returns. However, if you’re not offering tax resolution services, you’re missing out on a remarkable opportunity to grow your accounting practice and better serve your clients. As IRS enforcement becomes increasingly stringent each year, thanks to technological advancements, your expertise in tax resolution services could be the critical factor that protects your clients from bankruptcy or even incarceration. Add Value to Your Practice Offering tax resolution services is a great way to expand your portfolio and increase the work you do in the off-season. In addition to standard tax help, you can become a Tax Resolution
How to Handle IRS Tax Liens
A federal IRS tax lien is filed when a client fails to pay owed tax debt after receiving their first bill. The lien gives the government a claim against the client’s present and future assets and property without actually removing the property from the client’s possession (which is the difference between a levy and lien). Filing a federal tax lien may seem like a passive way for the IRS to collect tax debt, but a pending lien can be a serious impediment to your client’s life. In addition to the stress of having a government lien in place, your client is limited in how they can deal with their assets and property. Understanding and Managing IRS Tax Liens An
CSED Tax Resolution: There is More to Know
The IRS enforces a Collection Statute Expiration Date (CSED) on tax liabilities owed by taxpayers. Essentially, the IRS has a 10-year window to collect outstanding balances. If the IRS fails to collect these balances within the specified period, they must write off the remaining amounts, which can no longer be collected. As a tax professional, it’s essential to understand the CSED tax implications and communicate this information to your clients. In many cases, taxpayers have had substantial debts written off because the IRS let the statute expire without taking enforcement action. If your client has an outstanding debt for 8 or 9 years, there’s a possibility that the IRS may never pursue collection. However, it’s crucial to note
How to Determine IRS CSED and Statute of Limitations
Every client with federal tax debt also has an expiration date for that debt. Learning how to determine IRS CSED (Collection Statute Expiration Date) for each client is an essential skill for tax professionals, as it can significantly impact the available tax resolution options. While calculating the time the IRS has to collect back taxes may appear straightforward, understanding the intricacies of the expiration date and its implications can empower you to offer your clients the most effective solutions. The Collection Statute Expiration Date, or CSED, marks the final day the IRS can collect outstanding taxes from a taxpayer or corporation. In general, this date falls ten years after the tax return was filed or the federal tax liability