What is the difference between tax preparation and tax resolution?

Tax preparation and tax resolution are two distinct services that require different skills and expertise. Tax preparation involves preparing and filing your annual tax returns (Form 1040, business returns, etc.). Most tax preparers focus on maximizing deductions and credits to minimize your current tax liability. Tax resolution involves dealing with the IRS after a problem has occurred: resolving tax debt, handling audits, negotiating payment plans, submitting Offers in Compromise, stopping wage garnishments, removing liens, and getting penalties abated. A tax preparer may not have the skills or experience to handle IRS resolution, just as a resolution specialist may not be the best choice for preparing complex returns. When hiring a professional: for ongoing tax preparation, find a qualified preparer (EA, CPA, or licensed preparer) with experience in your type of return. For IRS problems, find a resolution specialist (EA or CPA specializing in resolution, or tax attorney for legal matters). Some firms offer both services, which can be advantageous because your resolution specialist understands your complete tax picture. The key question to ask: 'What percentage of your practice is dedicated to IRS resolution?' A specialist should say 50% or more.