IRS Tax Problems

Professional Spotlight: Whom do tax professionals turn to when their clients get into trouble with the IRS?

by
Lee Reams II
on
10/14/2015
Professional Spotlight: Whom do tax professionals turn to when their clients get into trouble with the IRS?

The wave of taxpayers and businesses falling behind on their taxes or not filing them at all has continued after the recession. Doing nothing is not an answer, as the resulting penalties, interest, tax liens and even tax levies will affect taxpayers' and business owners' financial well-being. 

A tax professional who the IRS did not allow to represent his or her client during collection negotiations posted an interesting request for help on TaxBuzz. There are two types of tax professionals: those with unlimited representation rights (CPAs, enrolled agents and attorneys) and those with limited representation rights (unenrolled preparers).

Hundreds of thousands of tax professionals fall into the limited representation group. Many others do not have the experience or the expertise to negotiate with the IRS or state collection agencies. These professionals' biggest fears no doubt include providing poor service and, worse yet, losing a client.

There are is a select group of tax professionals and Attorney's who work with other professionals. This professional spotlight highlights one of the best, Sharon Morgan (EA, CTRS). We interviewed Sharon to help understand her process and how she is assisting professionals and their clients through the IRS tax resolution maze. Sharon is the owner and operator of IRS Tax Pros. Sharon started working exclusively with other tax professionals because she saw an important niche that needed to be filled. Sharon stated, "I decided to form relationships with other tax professionals who either did not want to do tax resolution or were not qualified to do it. I also realized that forming these relationships would bring me ongoing referrals from my partners."

Sharon works with a network of firms across the country. Many of these professionals don't have the time to manage the long and arduous process of dealing with tax agencies. Sharon also realized that many tax professionals "could end up causing much bigger issues for their clients, who could end up owing even more money to the IRS."

Sharon looks at her referral sources as true partners. She has created a two-way communication system that has served her well. Sharon added, "I respond quickly to my referring tax professionals, and I keep them in the loop on progress with the client."

Sharon works with referral partners throughout the country. She is a TaxBuzz Verified Professional, which means that she has passed a background screening. She steps in to handle all aspects of IRS correspondence. Her service also includes a comprehensive Tax Analysis Report that helps take the guesswork out of dealing with the IRS. You can view a sample report.

Over 90% of Sharon's business comes from referrals from other tax professionals. She provides complimentary consultations for clients who owe over $15,000, and she charges a flat $300 fee to come up with an action plan for clients with debt under $15,000.

She negotiates resolutions that include settlements, installment agreements, compromise offers, and declarations that taxpayers are "Currently Uncollectible."

She only takes on cases for which she feels the client needs professional help. Her first phase includes discovery, analysis and evaluation to determine what issues the client is facing.

Before you can engage the IRS on a possible modification or settlement, you must come into compliance on all tax filings. Once that is accomplished, it is time to strategize to achieve the best possible tax resolution. The final part of the process is the final implementation and negotiation with the IRS.

The successful outcomes keep Sharon's pipeline of new clients growing. Testimonials like those shown below keep her work rewarding.

I have referred several clients who have had IRS problems. Sharon has done a very good job in working with these clients. - Richard D

I look forward to sending you clients who are in need of your services. I find using a professional who offers services I do not perform a wise skill (as taught by my mentor). - Susan Harke CPA

We asked Sharon to share some of her clients' success stories. She provided the following:

1040 Client Case Study:

"My first Offer in Compromise really hit home for me, and it helped someone who I know really deserved the outcome. The client and her husband were drug addicts with children. One morning, she woke up to find her husband dead in the bed. She went through a 12-step program and got clean; a couple of years later, while clearing out her husband's things, she found a drawer full of unfiled tax returns. She sent them all in, thinking that this was the right thing to do. This created a huge liability, but she had no ability to pay. She was living below IRS standards already, and with her special circumstances, we were able to settle a six-figure debt for $20!"

Business Client Case Study:

"A client had a single-member S Corp that he had inherited from his dad; the company was thriving until the recession hit. His company did alarm installation and monitoring. The client got way behind on his payroll taxes and owed six figures. The company had been struggling for a few years, and it no longer had any employees other than the client. He was referred to me because a revenue officer had been assigned to his case; the officer wanted to do a 4180 Trust Fund Recovery interview to assess the trust fund penalty to the client personally, which is one of the worst things that can happen to someone. After months of negotiations and onsite visits with the revenue officer, the client and I appealed to her sympathetic side. Because he is married with 3 children, she agreed to allow him 30 days to shut down his defunct business and walk away with no trust fund recovery penalty. He was a free man!"

This passion for personally getting involved with client cases differentiates Sharon Morgan from the "IRS Tax Problem" call centers. She notes that she only works with clients who actually need her help in the first place. This makes for more successful outcomes.

If you are a tax professional looking to offload your IRS tax problem cases to Sharon, she can be reached at 1-855-TAX-GIRL (829-4475) or by visiting her website.

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Lee Reams II

Lee Reams II

CEO

I am a tax and business news junkie who has spent the last 20 years developing and executing "best in class" word-of-mouth marketing campaigns for tax and accounting professionals. With TaxBuzz and CountingWorks we have taken that same commitment to quality content directly to the consumer. Keeping you up-to-date with the latest tax law changes, business growth tips and planning strategies to help you reach your best financial outcome.

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