IRS Representation Training

Given how much time I spend both practicing before the IRS and Department of Justice as well as teaching accountants and attorneys to represent taxpayers, I get asked a lot why an accountant or attorney should add Tax Representation to their existing practice.

The reason is simple: high demand, you get to charge higher prices, and no more tax season or ups and downs of the industry (unlike a practice area like bankruptcy or real estate, where demand waxes and wanes with the economy).

So here are my six reasons why every accountant and attorneys should seriously consider getting Tax Representation training:

1. The Demand

There are more than 25 million taxpayers in trouble with the IRS (more than 10 million non-filers identified and more than 15 million taxpayers with back balances owed to the IRS[1]).  Plus do not forget about the state departments of revenue!  The demand is huge, and it is not seasonal or tied to the economy.  Taxpayers need help all year-round as IRS enforcement is year-round.

The IRS is also now properly funded and has announced that it will begin enforcement again by the end of the summer (August 2023).  The tidal wave of work is coming for those of us who handle these matters!

2. Few Professionals Handle These Matters

Very few attorneys handle Tax Representation matters, and the same with CPAs and EAs.  It is the kind of topic that they do not teach in formal accounting and law programs.  To really get trained properly to represent taxpayers before the IRS and state departments of revenue, one needs to seek out training from professionals who have a large depth of knowledge in this area and get Tax Representation training, and possibly even certified in tax representation.

3. Charge More

When it comes to tax returns, or even a Chapter 7 bankruptcy, there is a lot of competition and potential clients can go to many different professionals to obtain the same service.  That is not the case when it comes to Tax Representation.  Very few accountants and attorneys have had any Tax Representation training, and so those of us that do this have little issue attracting clients.  The biggest challenge in building a practice is making sure your network of friends, colleagues and current clients know you have been given Tax Representation training and can handle these matters.  In fact, it is the number one reason why we see accountants getting certified in Tax Representation – to make sure their potential clients know they are certified and know how to handle these matters from start to finish!

4. It’s Not Difficult to Learn: Just Process & Formula

Taxpayer Representation is not a difficult area to master.  In fact audits and IRS collection matters are very linear, meaning the process is a straight forward one.  Once an accountant or attorney understands the process this entire practice area becomes simple and easy to understand.

The same goes for resolving back tax debts.  The IRS enforcement process is simple and straight forward, and resolving these debts is based upon a formula called Reasonable Collection Potential or “RCP”.  Inside Tax Rep we teach our members to handle these matters in a matter of hours with some of the most in-depth Tax Representation training.

5. You Will Win Clients for Life

“But after you resolve the client’s tax issue you never see them again.”

Wrong!

The same issues these taxpayers have, like lack of financial discipline, does not vanish the moment we fix their tax problems.  Far from it!  They often come back again and again.  My former senior partner, after hearing me complain about a client that was back again after defaulting on their agreement and calling them “stupid” said “Eric we love stupid people.  Stupid people are going to pay for your children’s college education and fund your retirement.  Don’t think of them as stupid people.  Think of them as walking annuities.”

Bob, my former senior partner had helped taxpayers several times, that I went on to inherit and help for the next ten years several times, for my staff now to be helping again and again.

The other thing is, if you happen to be a tax professional that does accounting and tax returns, you will have won a client for life after you solve their IRS or state tax issue.

6. You Will Attract More Clients

Most of our Tax Rep members report that after receiving Tax Representation training and launching their practice, they find more tax return and accounting clients comer to them.  Why?  Because the clients feel better knowing that if they do have an issue in the future, they know that the Tax Rep member can handle it.

Given the huge tidal wave of work that is coming as a now properly funded IRS begins taking the gloves off and enforcing again, there has been no better time to get Tax Representation training, get certified, and add this lucrative area to your existing practice or even launch a new practice!

[1] Almost 12 million in the current IRS Collection Division inventory and more than 3.2 million assigned to private debt collectors