How Much Tax Resolution Work Do You Perform?

I am asking this question from a business perspective. I want to know from those who are CPAs and EAs, and have received NTPI or ASTPS training, how many tax resolution cases do you typically conduct per year? I have read the positive comments of those who have taken the training, so understand the training is regarded as good. However my interest is in gaining an estimate of how many cases that those of you who are actually engaged in tax resolution typically handle. Thanks.

If it helps your case study, I am an EA and I take absolutely zero.

If I have a client who becomes delinquent (etc) or was somehow delinquent (etc) without my knowing, I refer them away and I will rarely even keep/help them with current taxes, let alone work to solve their issue(s).

I do about 1-3 per year but I don't do any advertising. I was on a referral page (stopped it), I have a page on my website and a mortgage broker refers people to me. The biggest issue is that you are dealing with people who are generally frustrating people to deal with. Otherwise it's actually rather easy work you can do during down times. I golf with a lady who owns a tax office (doesn't do any tax work herself) and one of her people does about 40 of them per year. 40 per year is a pretty substantial wage for what is essentially part time work.

Thanks! I appreciate your replies.

I do believe that there are many people out there who are noncompliant or who have tax resolution needs. Perhaps they are lucrative cases. However, i don't think it's as easy to get these clients compared to tax preparation clients.

I am always curious when I see people teaching courses. There are a few tax resolution coaches with courses, etc. but I always wonder why someone who is experienced in this area would take time out of their busy schedule to train other tax professionals to compete with them. It doesn't make sense. I'm sure they are nice guys but they're not THAT nice. What's the catch?

I think burnout is a factor. Less stress is likely involved in being a trainer.

I do believe that there are many people out there who are noncompliant or who have tax resolution needs. Perhaps they are lucrative cases. However, i don't think it's as easy to get these clients compared to tax preparation clients.

I am always curious when I see people teaching courses. There are a few tax resolution coaches with courses, etc. but I always wonder why someone who is experienced in this area would take time out of their busy schedule to train other tax professionals to compete with them. It doesn't make sense. I'm sure they are nice guys but they're not THAT nice. What's the catch?

My guess is
1) that the number of profitable resolution clients is much smaller than the total number. If they have a reputation that lets them get the $10,000 resolution clients and they let you take the $2,000 ones, they're happy with that.

2) a lot of inexperienced preparers bring in the educators as consultants or even just refer a case on to them. It wouldn't surprise me if these referrals are the more difficult and more expensive cases that the educator may find most profitable.

3) some people just enjoy it. I know for myself, I set up my business to involve a variety of tasks because I get bored doing the same thing over and over. Even if some of these things are lower dollar value, I'm still more productive overall with the variety.

One of the biggest trainers lives near Buffalo. How likely are you to take his clients? If you are a lawyer in Buffalo and are looking to refer someone, would you refer them to the nationally recognized expert or the guy who was trained by the expert?

Which is more efficient, doing a $10,000 case or giving a 2 day class for $2k each to 30 people in Orlando?

One of the guys gave a story (in his free stuff) about how it evolved for him. He was stuck in a cabin for a long weekend in a blizzard and essentially wrote a book on the subject in 3 days to position himself as the published author / expert. Then he wrote a few more books and people started asking him to train their employees.

EA here, I've taken some continuing ed on resolution but I do very little. I haven't marketed myself, but also it seems that the client who is in big tax trouble, but also can afford the high fees, is a rare bird. So it's not worth it for me to train myself to that level.

Never done an OIC. Did my first audit this year.

Seems like the sweet spot for me is in the paid initial consult - talk with the client, pull transcripts and go over their options. Typically their best course of action is for me to prepare outstanding returns, remind them to remain in compliance, and they set up their own installment agreement online. Simple, cheap, and stays within my expertise.

I have only done 3 of them, all for non resident G4 visa holders who were more than willing to pay me upfront fees to make sure they were in good standing with all things US since they had a lot to lose.

otherwise , like several have mentioned, I stay away from delinquent clients because they tend to be PITA clients and PITA type people in the first place
very small % of people that genuinely got themselves into a pickle do Not have the $$ to pay (for what I think is worth my time)

Anyone have experience with Contingency Fees, specifically how to collect payment and protect yourself from non payment?

otherwise , like several have mentioned, I stay away from delinquent clients because they tend to be PITA clients and PITA type people in the first place
very small % of people that genuinely got themselves into a pickle do Not have the $$ to pay (for what I think is worth my time)

Per my training and per my experience, clients will borrow the money for your fee and whatever is owed to the IRS and the IRS fully expects it. Also per my training you aren't supposed to judge your clients - they have a problem and your job is to just help them AND BE PAID TO HELP THEM. That's hard though.

My biggest case was a lady who owed $130k to the IRS and my OIC got it down to $10k (she made a huge commission right before our offer or it would have been about $2k). Her mom was supposed to pay it and instead of writing a check to the IRS for her daughter, gave her daughter the money to pay it. BIG MISTAKE. She cashed the check, bought drugs and the money was gone. Almost a year later she's screaming at me in our offices that it's unfair she should have to pay me again for another OIC.

Not sure to make of the fact that many of us are CPAs and EAs with this unique privilege to represent cleints yet, relatively speaking, few do so.

If it helps your case study, I am an EA and I take absolutely zero.

If I have a client who becomes delinquent (etc) or was somehow delinquent (etc) without my knowing, I refer them away and I will rarely even keep/help them with current taxes, let alone work to solve their issue(s).

You stole my answer…….