Ignition blog  /  Trends  /  How IRS closures are creating new demand for...
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The IRS is closing more than 110 of its offices across the country, many of which house a Taxpayer Assistance Center (TAC). These are the walk-in offices where people used to go for help resolving tax issues, asking questions, or navigating debt collections. Add to that the more than 7,500 employees let go, of which 2,000 answered phones and handled frontline support—and what you get is a big gap in taxpayer services.

"When the IRS steps back, taxpayers will need someone to step in—and that someone is us."

This is a pivotal moment for tax professionals. When the IRS steps back, taxpayers will need someone to step in—and that someone is us. But with that opportunity comes the pressure to scale, streamline, and deliver value fast. If you’re not ready, you’ll fall behind. If you are, this is your time to grow.

Key takeaways

  • IRS closures mean fewer places for taxpayers to get in-person help, and more pressure on tax professionals
  • Firms must scale quickly and efficiently to meet growing demand
  • Tech tools like Ignition, Tax Help Software, and SmartVault can help automate workflows and reduce admin
  • Standardized onboarding, proposals, and pricing models are essential to stay profitable
  • Flat-fee and subscription-based services are ideal for IRS representation work

The IRS is stepping back—and clients are coming to you

With the TACs closing and call support reduced, taxpayers are turning to accounting professionals for answers. And they’re not just looking for basic prep work—they need help resolving IRS issues, responding to notices, and getting out of debt.

If you're already doing IRS representation, now’s the time to let your network know. Promote those services in your newsletter, on your website, and even in your email signature. Your existing client base may not know that you offer help with IRS issues—and that’s a missed opportunity.

"Taxpayers will need more help from their accounting professionals."

Many of these clients are stressed out, confused, and may be receiving scary letters from the IRS for the first time. The more proactive you are about positioning yourself as a resource, the better you can support them—and grow your firm in the process.

Turn demand into growth—without burning out

You’ve got two choices when demand increases: hire more staff, or get more efficient. Hiring adds overhead and takes time. Tech, on the other hand, helps you do more with the team you already have.

There are only two ways to scale—hire more people or utilize tech.

That’s where Ignition makes a huge difference. It lets you automate proposals, contracts, and payments so you don’t waste time chasing signatures or dealing with scope creep. Ignition’s templates also make it easy to send consistent messaging to clients who are often stressed or confused by their IRS situation. Combine that with automated follow-ups and standardized onboarding, and you’re saving hours of admin each week.

Engagement letter and proposals

I personally recommend checking out tools like Tax Help Software for resolution work and SmartVault for secure document sharing. Tax Help Software plays a critical role in analyzing and resolving IRS debt, and SmartVault makes it easy to securely exchange sensitive financial documents with clients. These tools are must-haves if you’re serious about IRS representation work.

Making sure the tech pieces are in place will maximize efficiency and ensure everyone is following the same program.

The key is consistency—standardized processes, templates, pricing, and workflows that everyone in your firm follows. That’s what makes this scalable and sustainable.

Flat-fee services work—if you’ve got the systems

IRS representation isn’t like a one-off tax return. It involves back-and-forth, documentation, and sometimes long timelines. That’s why I’m a big advocate for flat-fee pricing models, especially when paired with a clear engagement process.

"With the proper training and tech pieces in place, IRS rep work can be done flat fee—which can make it very profitable."

Firms that have their systems in place—automated proposals, defined service packages, client agreements—all of which Ignition supports, can make this kind of work very profitable. You’re not billing hourly. You’re offering clarity, consistency, and outcomes.

Subscription-based pricing is another great option. When you bundle services and charge on a recurring basis, you smooth out cash flow and set better expectations with clients. It’s easier to manage your workload and avoid the all-too-common “scope creep.”

Streamlining onboarding and client communication

When clients are stressed, confused, and unsure about what’s next, a smooth onboarding process can make a world of difference. Ignition’s pre-built templates help you communicate clearly and consistently, reducing back-and-forth and making your client feel more confident in your process.

"Ignition's follow-up helps get clients to sign and pay—and reduces the labor in chasing these people."

This also removes manual admin work. Instead of chasing down signatures or payments, your systems are doing that for you. You can focus on resolving your client’s issues, not the paperwork. That’s a huge win for both sides.

It’s not just about tax prep anymore

There’s also a bigger shift happening in our industry. As compliance work becomes more automated, clients are looking for guidance, not just returns. They need someone who understands strategy, resolution, and what comes next.

Most of the old processes are being automated, so anyone going into this space will need to be able to think strategically.

Even with the CPA pathway evolving to make certification more accessible, that’s only part of the solution. The next generation of accountants needs to be ready to move from tax preparer to trusted advisor. And that means having the tools, training, and mindset to lead. This shift presents an opportunity for firms to upskill their teams and focus more on advisory services that offer long-term value.

Why now is the time to modernize your firm and lead with confidence

The IRS closures are a clear signal: the role of the tax professional is more important than ever. But to meet this moment, firms need to be ready—with services that are clearly defined, systems that scale, and tech that does the heavy lifting.

"Ignition helps firms like mine onboard clients faster, get paid sooner, and run smoother operations."

If you’re serious about growing your practice in this new environment, now’s the time to make sure you have the right platform in place.

Ready to scale smarter and grow your tax practice?

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Published 31 Mar 2025 Last updated 02 Apr 2025