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How to add tax resolution services to an accounting practice

Short answer

To add tax resolution services, confirm you hold a credential with unlimited representation rights (CPA, EA, or attorney), learn the four main collection programs, set flat-fee pricing by stage, and adopt software that pulls and reads IRS transcripts. Start with existing clients who owe, since they already trust you.

By the BestTaxSoftware.com editorial team. Updated . Prices checked on vendor sites that day.

How a resolution case moves, stage by stage
  1. DiscoveryStage 1 of 4

    Software + practitioner

    Client signs Form 8821 or 2848. Transcripts are pulled for each year and form. Balances, assessments, penalties, and CSED dates are read.

    Output: A dated picture of what the IRS says is owed and why

  2. StrategyStage 2 of 4

    Practitioner decides

    Financials are compared against Collection Financial Standards. Installment agreement, CNC, offer in compromise, and penalty relief are weighed against the statute dates.

    Output: A recommended path the client approves

  3. ExecutionStage 3 of 4

    Credentialed representative

    Forms such as 433-A, 433-F, 9465, or 656 are prepared and signed. The representative calls or submits to the IRS and handles follow-up.

    Output: An agreement, a hold, or a pending offer

  4. VerificationStage 4 of 4

    Software + practitioner

    New transcripts are pulled to confirm the IRS posted the agreement, abatement, or hold. Evidence is kept on file.

    Output: Proof the result exists on the IRS record

Only a CPA, enrolled agent, or attorney can carry the Execution stage for a collection matter. Software can prepare and organize every stage; it cannot represent the taxpayer.

Do you have the right credential?

Collection representation requires a CPA license, EA credential, or bar admission. An AFSP participant or unenrolled preparer cannot represent a client in a collection matter, even for a return they prepared.

What are the steps to a first case?

  1. Get Form 8821 signed to see the record before you quote, or Form 2848 if you are ready to represent.
  2. Pull account transcripts for every year with a balance and every unfiled year.
  3. Total the liability by year, and note each Collection Statute Expiration Date.
  4. Collect financials on Form 433-A or 433-F and compare them to Collection Financial Standards.
  5. Choose a path: payment plan, CNC, offer in compromise, penalty relief, or a combination.
  6. File any missing returns. Most programs require compliance first.
  7. Submit, follow up, and pull new transcripts to confirm the result posted.

What software do you need on day one?

Something that pulls transcripts through the IRS Transcript Delivery System and decodes them. Doing it by hand from Tax Pro Account works for one case and fails at five. Resolution tools add the financial analysis and forms.

What should you not take on first?

  • Payroll tax cases with trust fund recovery penalty exposure
  • Cases already in Appeals or Tax Court
  • Clients with open criminal investigation signs, which belong with an attorney

Questions practitioners ask

How long does it take to add resolution services?
The credential is the long part. If you already hold one, the main investment is learning the programs and the IRS Manual sections on collection, which many practitioners do through continuing education alongside a first case.
Do I need malpractice coverage for resolution work?
Check your current policy. Some professional liability policies exclude or limit IRS representation; ask your carrier before taking a first case.

Sources

  1. Understanding tax return preparer credentials and qualifications (IRS)
  2. About Form 8821, Tax Information Authorization (IRS)
  3. About Form 2848, Power of Attorney and Declaration of Representative (IRS)
  4. Transcript Delivery System (TDS) (IRS)
  5. Collection Financial Standards (IRS)
  6. Circular 230: Regulations governing practice before the IRS (IRS)