Tax resolution is a specialized field that involves helping individuals and businesses resolve their tax problems with the IRS. However, many myths and misconceptions surround tax resolution careers, often deterring capable professionals from entering the field. In this article, we will address some of the most common lies and misconceptions about a career in tax resolution and provide insights into the reality of this rewarding profession.
Debunking Lies, Myths, and Misconceptions About a Tax Resolution Career
Myth 1: “They should pay their taxes. This whole thing doesn’t make any sense.”
Reality: Most tax problems stem from unforeseen life events such as business failure, divorce, death, job loss, or other traumatic experiences. These individuals are not bad people; they simply need help to get their lives back on track. Without the assistance of tax resolution professionals and IRS programs, they might never recover from their financial difficulties.
Myth 2: “If they can’t pay the IRS, how are they going to pay me?”
Reality: Clients who owe significant amounts to the IRS often still have the means to pay for professional help. They may borrow money from friends or family or find other ways to afford your services. As a tax resolution professional, your job is to quote a fair fee and let the clients determine how to cover it.
Myth 3: “I live in the middle of nowhere. I won’t be able to find clients.”
Reality: Geographic location is less important in today’s digital age. Many clients are comfortable conducting business over the phone or via Zoom. National firms operate successfully with this model, and even firms with physical offices primarily work remotely.
Myth 4: “I work from home, so I can’t meet clients.”
Reality: With modern tax resolution software, client portals, and communication tools like Zoom, you can efficiently run a tax resolution business from home. If in-person meetings are necessary, coworking spaces or coffee shops can serve as temporary meeting locations.
Myth 5: “Attorneys have such a big advantage. How could I possibly compete as a CPA or EA?”
Reality: CPAs and EAs have the same representation rights before the IRS as attorneys, except for appearing in tax court. Many attorneys lack specialized tax knowledge, making CPAs and EAs equally, if not more, competent in tax resolution.
Myth 6: “How can I compete with the big national companies?”
Reality: You don’t need the same volume of work as national firms, which have high overhead costs. You can compete by being local, specializing in a niche, accumulating great reviews, and being personable and relatable.
Myth 7: “There isn’t enough work for everyone.”
Reality: The demand for tax resolution services is immense. According to the IRS Data Book, 11 million people owe $158 billion, with 7-8 million new cases added annually. There are more than enough cases to sustain many tax resolution firms.
Myth 8: “I don’t want to do tax prep. Can I still do resolution work?”
Reality: Yes, many professionals, including attorneys, specialize solely in tax resolution. Partnering with someone who does tax preparation can enhance your service offerings without you having to handle the prep work yourself.
Myth 9: “Should I learn the technical side or marketing side first?”
Reality: Mastering the technical side is crucial before marketing your services. Without technical competence, you risk damaging your reputation with poor service. However, it is possible to learn both simultaneously.
Myth 10: “I don’t want to spend big money on marketing. How can I find clients for less?”
Reality: The focus should be on ROI, not just the cost of marketing. Effective marketing, even if expensive, can generate significant revenue. Additionally, low-cost methods like networking, referrals, and content creation can also bring in clients.
Myth 11: “I don’t know how to get experience.”
Reality: Gaining experience in tax resolution involves learning and practicing. Building an educational foundation and then applying that knowledge through actual cases will gradually build your expertise.
Myth 12: “I don’t know that I want to run my own firm but I’m interested in the work. Are there jobs out there?”
Reality: Yes, there are numerous opportunities in the field. Many tax resolution firms are constantly seeking qualified professionals to join their teams.
Myth 13: “I’m super interested but I simply have no idea how to get started.”
Reality: Programs like the ASTPS Accelerator provide comprehensive training to get you started in the IRS representation business, equipping you with the necessary skills and knowledge to succeed.
Conclusion
A career in tax resolution is not only viable but also highly rewarding. By debunking these myths and misconceptions, we hope to encourage more professionals to consider this path. With the right training and mindset, you can build a successful and fulfilling career in tax resolution.
For more information on starting your journey in tax resolution, consider joining the ASTPS Accelerator program. Visit ASTPS.org/Accelerator to learn more and register for upcoming sessions.
