Why IRS Representation is the Hottest Area in Accounting & Taxes

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Editor's Note: We're always looking for innovative paths (tracks) and sessions to offer at the "Scaling New Heights" conferences. This year, we believe we have found a path that will enlighten you about an opportunity you may have overlooked: The IRS Representation Path. Eric Green and Dawn Brolin, who are presenting the sessions in this path, have collaborated on a piece to set the stage for today's ProAdvisors. 

Yes, it’s true – IRS Representation has been, and continues to be, the hottest growth area in the tax and accounting world. The IRS statistics prove this statement. 

Currently, there are more than 14 million taxpayer accounts in the IRS Collection Division inventory, and the number just continues to escalate year-after-year (These figures are all taken from the "IRS Data Books," which publish the number of cases in the Collection Division inventory each year, along with every other statistic you could possibly want about the IRS.).

Roughly one in every 15 taxpayers owes money to the IRS.

So why this incredible growth in representation? Good question.

The taxpayer goes to his accountant and sees his tax return, which shows a $25,000 liability owed to the IRS. He has two thoughts go through his head:

  1. I can’t pay that.
  2. If I don’t file the tax return, then the IRS won’t know I owe money.  And if the IRS does not know that I owe them money, then they cannot file liens against me, levy my accounts and ruin my marriage.

And so our taxpayer fails to file, adding an additional 25 percent failure to file penalty and a 25 percent failure to pay penalty on top of the balance he already owed.  “But don’t worry,” he says to himself, “next year will be better and I will take care of the taxes then.”

And so it goes, year after year, until finally the IRS notice CP-516 shows up.

Now in a panic, the taxpayer comes running into your office.  

What happens when a taxpayer files returns for multiple years owing taxes, with a 25 percent failure to file penalty, 25 percent failure to pay penalty and interest all heaped on top of the tax liability?  

They end up in the IRS Collection Division inventory.  

Now they will pay for multiple years of bookkeeping to be done, multiple years of tax returns to be done, and someone will get paid to deal with the tax liability.  As professionals, we love non-filers.

If the non-filing goes on long enough, IRS Criminal Investigation Special Agents might even come and knock at their door. Now we’re talking serious dollars.

Non-filers create tens of thousands of dollars of work for accountants in bookkeeping and tax returns alone.  Now add on the representation fees, and you’ll understand why we love them. 

In fact, it is how we (Dawn Brolin and Eric Green) have become such a team together in resolving these cases. As we write this, we have six civil exams (and accompanying appeals), four criminal tax investigations and four Offers-in-Compromise going on together. 

It has been this way now for several years.

This year at the "2017 Scaling New Heights" conference, we have worked with Joe Woodard and his team to create an entire “track” for IRS representation: everything from the initial letter of an IRS Examination to resolving the back-tax debt, and everything in-between. 

Join us for either some, or all, of our sessions and begin the process of transforming your practice into a more profitable machine that increases not only your bottom line but adds to your visibility because of your new reputation for being able to handle the IRS issue whenever it comes up. Your income will grow due to the increased fees, and your client base will grow because taxpayers feel comfortable using you in case there is ever in issue.

As your ever-faithful Sherpas, we stand ready to guide and encourage you along your chosen path. If you would like to consult with us about your path, email Carol Oliver at coliver@woodard.com or Liz Colley at ecolley@woodard.com.  Be sure to tell us your goals and what you hope to learn so we can recommend appropriate paths.

We look forward to seeing you Sunday, June 4, in our first session, “The Letter Arrives: Handling an IRS Examination,” and helping you either launch an entirely new revenue stream for your practice or expand the one you already have.

You can find more details about each of the sessions in a downloadable document located here: Download Course Descriptions.  

Dawn W. Brolin, CPA, MSA, is a Certified Public Accountant and Managing Member of Powerful Accounting LLC. The nationally recognized accounting, tax, forensic accounting, IRS and DRS representation and QuickBooks consulting firm has two locations in Windham and New Haven, Conn. Recently, Powerful Accounting has partnered with Anderson, Brolin & Coba CPAs, LLC – a powerhouse tax preparation, consulting and wealth management firm, where Dawn is a partner. 

Dawn’s list of professional accomplishments is extensive and includes working with prestigious companies such as Intuit, TSheets.com, Fundera, MSNBC, and The Woodard Group.  Named “Top 25 Most Powerful Women in Accounting” 2012-2015, one of the “Top 40 Under 40” by CPA Technology Magazine in 2009, Dawn continues to pursue excellence with the support of her amazing Team at Powerful Accounting.  

Known for her hilarious presentation style, Dawn has been featured on MSNBC “Your Business” and has spoken at Intuit’s QuickBooks Connect, Scaling New Heights, Sleeter Conference, TD Bank North locations, Tory Johnson’s Small Business Spark and Hustle Tour, Live Your Legacy Summit, and many more.

Eric Green is a partner in Green & Sklarz LLC, a boutique tax firm with offices in Connecticut and New York. The firm practices civil and criminal taxpayer representation before the Department of Justice Tax Division, Internal Revenue Service and state Departments of Revenue Services, as well as handling probate matters and estate planning for individuals and business owners and tax planning for closely held businesses.

Eric also is a frequent lecturer on tax topics for CCH, the NAEA, the NATP, the ABA Tax Section and the Connecticut Society of CPAs. In addition, he has served as adjunct faculty at the University of Connecticut School of Law. Eric also is the author and lecturer of the CCH IRS Representation Certificate Program, and he is a columnist for CCH’s Journal of Practice & Procedure. He is the founder of The New England IRS Representation Conference, and runs Tax Rep LLC, a mastermind group that helps accountants and attorneys build their IRS representation practices. 

Eric is a contributing author for Advocating for Low Income Taxpayers: A Clinical Studies Casebook, 3rd Edition, and has also been quoted in USA Today, Consumer Reports, The Wall Street Journal’s Market Watch, TheStreet.com, The Wall Street Journal and CreditCard.com.

Prior to practicing law Attorney Green served as a senior tax consultant for KPMG and Deloitte & Touche.

Attorney Green was the 2010 Nolan Fellow of the American Bar Association and has served as Chair of the American Bar Association’s Closely Held Businesses Tax Committee.  Attorney Green is the current Chair of the Executive Committee of the Connecticut Bar Association’s Tax Section.  Eric is a Fellow of the American College of Tax Counsel (“ACTC”).  

Attorney Green is also a member of the Connecticut, Massachusetts and New York Bar Associations, as well as the American Bar Association.  Attorney Green is admitted to practice in Massachusetts, New York and Connecticut Superior Courts, the United States Tax Court, The Federal Court of Claims and the Federal District Court for Connecticut. Attorney Green received his Bachelor of Business Administration degree in Accounting with a minor in International Business from Hofstra University and is an honors graduate from New England School of Law. He earned a Masters of Laws in Taxation (LL.M.) from Boston University School of Law.