Posted by Common Cent$ Bookkeeping and Tax Preparation

Everything You Need To Know About IRS Tax Resolutions

Everything You Need To Know About IRS Tax Resolutions

One of the main reasons why tax resolutions exist is because there are taxpayers who find themselves facing IRS collection process, related penalties and consequences difficult to handle. Tax resolutions provide advice, guidance, and representation necessary to understand complex IRS policies and laws. Most taxpayers end up looking for tax resolution options to solve their IRS problems in order to go back in good standing. In the past, getting into tax resolution is difficult because to be an expert on it, you will have to study intimidating thick IRS books and manuals. It’s no longer an issue now since there are services that offer exactly what you need thanks to the tons of resources now made available.

What exactly is Tax Resolution?

Tax Resolution is also popularly called as IRS REpresentation, Tax Problem Recovery, Tax Controversy. It offers tons of services for individuals who need them. To be specific, tax resolution is a service that helps clients fix their open debt problems with the IRS without having to spend that much money as possible.

What Services Does Tax Resolution Offers?

Tax Resolution usually offers services like Offer in Compromise, Installment Agreement, Penalty Abatement, Innocent Spouse, Audit Representation, Liens, Levies, Trust Fund Recovery, and so much more. There are hundreds, maybe thousands, of tax preparers who offer tax resolution instead of tax preparation. The reason being is that tax resolution cases pay more than that of tax preparation. They’re also more flexible when it comes to IRS deadlines. It’s a great service to offer before tax season arrives.

Who Are Qualified To Offer Tax Resolution?

Obviously, you will tax a lot of tax preparer and companies out there who are more than qualified and legally allowed to offer tax resolution services to you. But you may actually qualify to offer it too if you have the necessary requirements. You must first become an Enrolled Agent (EA), Certified Public Accountant, or a Tax Attorney. If you decide to become an EA, there are two paths you can choose to get started.

Here are the following requirements for the first option:

Get a Personal Tax Identification Number (

Pass all sections of the Special Enrollment Examination (SEE). The IRS provides past examinations and answers samples for this.
Fill up Form 23 to apply for enrollment.
Pass a background check such as a review on your tax transcript

For the second option, here are the requirements:

Required working experience in the IRS as mandated in section 10.4 of Circular 230
Fill up Form 23 to apply for enrollment.
Pass a background check

How Will You Learn More About Tax Resolution?

There are a lot of Tax Resolutions courses offered that will surely help you out into understanding and learn more about the subject. Another option is attending webinars arranged by tax professionals. You have tons of options actually. The National Association of Enrolled Agents (NAEA) also provides resources on learning tax resolution trough webinars, NTPI level 1 course, and conferences that are scheduled in advance for you to take advantage of.

Learning about the basics and major lessons about tax resolution doesn’t just end there. You will have to start practicing it and for you to do that, resources made available and are designed on tax resolution subjects can greatly help you out. These resources are books that can be found for sale on Amazon but before you start purchasing one, make sure you do research about the author. A professional with an extensive research on tax resolution should be your first choice.

Since we are now in the modern age, tax resolution software are also made to make complicated IRS code easier to learn. The software can automate services on your behalf, auto-populate the required IRS forms for each of your clients, and so much more. It doesn’t just get the job easier and faster, it also accurately enter all information needed.

Once you have everything ready, you can get started right away. Perhaps the next thing you should figure out is the amount of money you’ll be charging for your services. There’s no need to hurry because the guides you have now will surely bring you to where you want to go in this kind of business.

Common Cent$ Bookkeeping and Tax Preparation
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