Drive down any street in the United States these days and it’s not long before you come across an office that prepares and files tax returns. Many of these are well-known franchise offerings; some that have almost become synonymous with tax preparation itself. There are also the old names and the newcomers. Each of these franchises has a niche that they serve. Many of the smaller and newer tax franchise offices specialize in RAL or “Refund Anticipation Loans.” Some of the companies have names that sound like accounting firms, while others have names that sound more commercial.
TAX DRx is a new and different type of tax franchise that combines tax preparation and resolution services under one roof. We all know what tax preparation is, but tax resolution adds an interesting and profitable service to the TAX DRx franchise offering. Tax resolution is the service whereby professionals work with those who are having problems with the IRS to help them “resolve” differences or disputes. Many tax preparation offices are busy from January through the end of April, then closed or open for reduced hours after that time. TAX DRx offices generate income throughout the year, which makes their business model very different.
It is estimated that almost sixty percent (60%) of US taxpayers pay a professional to prepare and file their returns. This makes tax preparation big business for the right person. Tax preparation is considered a business that is resistant to recession and has low start-up costs. These two things combine to make it an attractive business now and for years to come.
The tax resolution aspect of TAX DRx makes it a very interesting franchise offering compared to other franchises. In order for a professional to offer tax resolution services, they must be an attorney, certified public accountant, or IRS-registered agent, a designation that can only be obtained after passing a test given by the IRS. TAX DRx hopes that all of its franchise owners will eventually have a professional designation to handle tax resolution work. TAX DRx has a way of assisting any tax franchise owner with tax resolution cases until they obtain the required designation. Because owners require the franchise to have a better and deeper understanding of tax preparation, TAX DRx hopes that they will be able to offer a higher level of tax services than other tax franchises, thus attracting clients who are willing to pay. a little more for a better quality service.