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6 Biggest Challenges Tax Relief Lawyers Will Face in 2024

Taxes are confusing, overwhelming, and, for many people, impossible to pay. When tax issues arise, tax relief lawyers help make things right. According to Nasdaq, nearly one in four Americans owes back taxes. That means millions of U.S. residents need tax relief solutions.

Even though the market is bursting with need, tax relief attorneys face various obstacles. This article from United Consumer Financial Services highlights the biggest challenges tax relief lawyers will face in 2024 and what you can do to overcome them.

1. Keeping Up with Constantly Changing Laws and Regulations

Tax laws are constantly changing. Regulations are highly politicized and typically change with every presidential election. As a result, tax relief lawyers are responsible for maintaining an up-to-date knowledge of these evolving codes and regulations.

Because 2024 is an election year, we can anticipate changes to tax policy. Many lingering tax issues need to be addressed during the next presidential election cycle and after the election.

Understanding tax policy changes and ensuring your firm stays on top of even minor variations to these regulations proves a challenge to tax relief lawyers. You must face this challenge to not only provide effective services to your clients but also maintain compliance with the IRS and your state bar.

 2. Employee Retention

The tax industry is fraught with employee burnout. Tax lawyers and their support staff can become overwhelmed and disillusioned even in firms that work to prioritize a healthy, balanced environment.

Burnout leads to quitting, making employee retention a significant challenge for tax relief lawyers and firms. Lawyers must prioritize their employee’s well-being to keep them on. Setting and sticking to boundaries, vocalizing and managing expectations, and providing clear feedback will help your team feel safe and valued.

3. Client Education and Expectations

Cultivating trust and credibility in this industry is essential, and it begins with education. Many tax relief clients may not fully understand the complexities of their tax issues and realistic solutions. Tax relief lawyers must invest in client education, empowering them to make informed decisions regarding their action plans.

Client expectations also present challenges for firms trying to provide relief for their clients’ tax issues. Your clients likely have high—and potentially unrealistic—expectations of your firm. Understandably, they want a quick, effective resolution and for all issues to be resolved promptly. Any seasoned tax relief attorney knows these cases take time and often aren’t linear.

Client education will help manage expectations regarding the outcome of their case. 

4. Litigation and Legal Challenges

Tax relief cases are usually stressful and emotionally charged for your client. Some cases are so extreme that they escalate to litigation, requiring you to navigate legal proceedings and represent your clients in court.

Handling litigation challenges requires time, resources, and total client trust, which are precious and difficult to secure in this industry. In addition to maintaining a thorough understanding of tax relief law and practice, lawyers must also develop expertise in litigation strategy.

The goal is always to settle tax issues out of court. But when your client’s case escalates, you must be ready to represent them and secure a positive outcome.

5. Reputation Management

Maintaining a positive reputation is vital for tax relief lawyers. Your reputation among past and existing clients directly impacts your ability to attract new clients and position your business for long-term success.

Implementing an online ratings and reviews strategy allows you to manage your online reputation better. Verified reviews help you know what clients say, including praise and complaints, so you can address issues and provide solutions.

Social proof is powerful. Your clients are researching to find the best tax relief lawyer in their area and around the country. Prioritize reputation management and show them you can provide the services they seek.

6. Client Collections

Collecting client payments for your service is the most overwhelming challenge facing tax relief lawyers in 2024. Seeking tax relief services is a source of stress and frustration for many. And when results aren’t immediate, mounting client emotions can result in fractured client relationships.

Many times, new client intake goes smoothly. However, if a client doesn’t have the lump sum to cover the cost of their tax relief legal services, they might not move forward with their service.

Partnering with a consumer financing firm like United Consumer Financial Services makes collections easier. Call center agents can complete our simple application process and notice of approval is in just minutes. From there, you can complete the financing contract with your customer, commence with service, and your customer begins repayment to UCFS for the life of the loan.

Your clients are put on an autopay plan for the duration of their loan repayment. UCFS sends you compensation in one to two days. Consumer financing through our program ensures you can be funded right away  and reap the benefits of positive cash flow.

Securing Your Success in 2024 with UCFS

Tax relief lawyers play a huge role in the lives of their clients. With IRS agent staffing still not at needed volumes, tax relief lawyers can help people out of seemingly impossible tax situations, allowing them to get their taxes under control instead of sinking further into back tax stress.

You support your clients. You need a dedicated team to support you. United Consumer Financial Services provides practical, realistic consumer financing options to tax relief firms nationwide. We simplify the process, reducing stress for your firm and those you serve.

Our team has over forty years of experience backing our proven financing services. Let us handle your financing so you can focus on your clients. Reach out to our team to learn more about how partnering with UCFS can simplify your operations and allow you to serve more clients and grow your business.