Playbook
How to start a tax resolution practice on your own
Short answer
To start a tax resolution practice, you need unlimited representation rights, a CAF number from your first Form 2848, a written engagement letter, flat-fee pricing, and transcript software. Build referral sources with local preparers and bookkeepers who cannot represent, and follow Circular 230 rules on advertising and fees.
By the BestTaxSoftware.com editorial team. Updated . Prices checked on vendor sites that day.
What is different from adding resolution to an existing practice?
You have no existing book to draw first clients from. Your first clients come from referrals and from search. That makes your referral relationships and your published information the main assets of the business.
What setup does the IRS require?
- A PTIN, and an active CPA license, EA enrollment, or bar admission
- A CAF number, which the IRS assigns when it processes your first Form 2848
- Compliance with Circular 230, including limits on contingent fees and advertising
Where do referrals come from?
Preparers, bookkeepers, and payroll providers who see clients with IRS letters but cannot represent them. Offer a clear referral path: you take the collection matter, they keep the return and the books.
Questions practitioners ask
- Can I charge a contingent fee on a resolution case?
- Circular 230 restricts contingent fees to limited situations. Most collection work is billed as flat or hourly fees. Read section 10.27 before setting terms.
- Should I advertise guaranteed results?
- No. Circular 230 prohibits false or misleading statements, and the FTC has acted against resolution firms for misleading claims.