The 1040 business has gotten brutally competitive. In 2016, 43 percent of taxpayers filed their own tax return. H&R Block closed 400 locations. The average fee to complete a 1040 in 2012 was $345. In 2017, the average fee to complete a 1040 was $261. You see the trend.
It’s time to take on something new, unless you want to earn less and work harder year after year after year.
The good news is there is an area in tax which is in great demand, commands premium prices, and generates customer loyalty like never before.
In 2019, there were more than 15 million accounts in collection with the IRS and 10 million nonfilers. The Tax Practice Advisor reports that 1 in 3 taxpayers won’t be able to pay their 2019 taxes on time. Due to technology advances, the IRS is finding nonfilers and late payers like never before in history. The year 2020 is adding its own twist in demand as people struggle with health care bills, unemployment, and natural disasters with the fires and weather events.
Take a guess at the average fees for a nonfiler. You have bookkeeping catch-up, returns to prepare, the resolution service, plus issues at the state level. It all adds up to a whopping $18,000, conservatively. And for those types of clients, you can ask for a $5,000 retainer.
More demand. More revenue. More grateful clients, because you have helped them out of a mess they created for themselves that caused a great deal of stress. This is almost a no-brainer.
Most attorneys are not offering this service, so it’s up to CPAs and EAs and tax professionals to step up and fill the market need.
You might have some questions at this point: Can you learn these skills? How do you acquire these skills so you can gain competence and confidence to offer tax representation services to your clients? How do I find a mentor that can provide training, checklists, examples, and guidance?
That’s where I can help. As a practicing Tax Attorney since 2000 and an instructor and author on tax representation since 2006, I saw the need to help CPAs and EAs learn this area. The demand is huge – my law practice has exploded to 22 employees focusing on tax resolution. So I started a program exclusively for tax professionals.