Tax resolution firms specialize in representing individuals and businesses before the IRS and state tax authorities to settle back taxes, remove liens and levies, and negotiate installment agreements or offers in compromise. The industry is driven by the persistent gap between taxpayer obligations and compliance, with tens of millions of Americans carrying IRS debt at any given time. Firms range from solo enrolled agents to multi-practitioner operations with sophisticated digital marketing and case management infrastructure.
Who buys these: Enrolled agents, CPAs, tax attorneys, financial services entrepreneurs, and private equity-backed roll-up platforms seeking recurring revenue service businesses
2.5–4.5×
Typical EBITDA multiple
$1M–$5M
Revenue range
Growing
Market trend
SBA Eligible
7(a) financing available
Recession Resistant
Essential service
Established firms with $1M–$5M revenue, minimum 3-year operating history, diversified client base with no single client exceeding 15% of revenue, documented case management processes, and licensed staff willing to stay post-close
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Key items to investigate when evaluating a Tax Resolution Firm acquisition
Seller Intelligence
Who sells Tax Resolution Firm businesses?
Founding enrolled agents, CPAs, or tax attorneys aged 50–70 approaching retirement, practitioners facing burnout from high-stress IRS negotiation work, or owners seeking liquidity to fund a new venture
Typical exit timeline: 12–18 months
Tax Resolution Firm businesses in the $1M–$5M revenue range typically sell for 2.5–4.5× EBITDA. Established firms with $1M–$5M revenue, minimum 3-year operating history, diversified client base with no single client exceeding 15% of revenue, documented case management processes, and licensed staff willing to stay post-close
Tax Resolution Firm businesses typically trade at 2.5–4.5× EBITDA in the lower middle market. The market is highly fragmented with growing demand, which supports premium multiples.
Tax Resolution Firm businesses are SBA 7(a) eligible, making them accessible to first-time buyers. Asset purchase with 10–20% seller note tied to case collection performance over 12–24 months
Key due diligence areas include: Case file audit — reviewing active cases for stage, estimated resolution, and fee collectability; Revenue recognition methodology — distinguishing between retainer fees, contingency, and installment billing; Staff licensing verification — confirming all practitioners hold valid EA, CPA, or JD credentials; Client concentration and attrition rates over trailing 36 months; IRS and state tax authority correspondence records and compliance history of the firm itself.
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