Drive down any street in the US these days and it’s not very long or far before one runs into to 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 the old time names and newer comers as well. Each of these franchises have a niche that they serve. Many of the smaller and newer tax franchise offices specialize in RAL’s or “Refund Anticipation Loans.” Some of the companies have names that sound like accounting firms while others have more commercial sounding names.
TAX DRx is a new and different kind of tax franchise that combines both 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 by which professionals work with those that are having some trouble with the IRS to help them “resolve” differences and or disputes. Many tax preparation offices are busy from January until the end of April, then they are either closed or open for reduced hours after that time. TAX DRx offices generate revenues year round which makes their business model very different.
It’s estimated that almost Sixty Percent (60%) of US tax filers pay a professional to prepare and file their returns. This makes tax preparation a great business for the right person. Tax preparation is considered to be a business that is both recession resistant as well as one having 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 either be an attorney, a CPA, or an Enrolled Agent with the IRS, a designation which can only be obtained after passing a test given by the IRS. TAX DRx expects all of it’s franchise owners to 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. By requiring owners of the franchise to have better and more in depth knowledge of tax preparation, it is TAX DRx’s hope that they will be able 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.