One of the most significant and often overlooked aspects of tax practitioner time is responding to IRS notices on behalf of clients. This task, while necessary, can be incredibly time-consuming and costly, especially in the post-COVID era where IRS notices have become more frequent.
According to a recent survey by the National Association of Tax Professionals (NATP), tax practitioners spend an average of 5 to 10 hours per week responding to IRS notices. This equates to a staggering 260 to 520 hours per year, which is time that could be spent on more productive tasks such as growing your business or providing additional value to your clients. Even at a low rate of $125 per hour, the time spent responding to these notices equates to tens of thousands of dollars in lost revenue if this isn’t built into your pricing.
