For CPAs, Enrolled Agents, and Tax Attorneys: Tax Funds helps your business clients access specialty financing to pay off IRS and state tax debt in full — stopping enforcement, releasing liens, and restoring their ability to borrow. If you have a client stuck in an installment agreement or facing an NFTL, this page explains how our referral relationship works.
The Problem Your Client Is Stuck In
Every tax professional has seen this scenario: a business client with $100,000 or more in IRS 941 or income tax debt. The IRS has filed an NFTL. The client is on an installment agreement — paying $3,000 per month for the next several years. In the meantime:
- The federal tax lien blocks every conventional loan application
- The bank will not refinance their commercial real estate because of the lien priority issue
- They cannot get an SBA loan — the IRS lien is disqualifying
- They may be losing government contracts or vendor relationships because of the public NFTL
- The Trust Fund Recovery Penalty is hanging over the owner personally
You have done your job: you got the client into compliance, filed the returns, negotiated the installment agreement. But the lien remains, and the business is functionally frozen out of capital markets for 3–5 more years. This is the gap Tax Funds fills.
What Tax Funds Does Differently From Tax Resolution Firms
Tax resolution firms negotiate with the IRS — they pursue OICs, installment agreements, penalty abatement, and lien releases through resolution programs. That is valuable work. Tax Funds does something entirely different:
We connect businesses with specialty lenders that will pay the IRS in full — financing the payoff, releasing the lien, and stopping enforcement. We are not a resolution firm. We are a financing marketplace. The two services are complementary: you handle the tax strategy and representation; we find the capital to execute the payoff.
| Service Type | What They Do | Result |
|---|---|---|
| Tax Resolution Firm | Negotiate OIC, IA, penalty abatement | Reduced or deferred liability — lien remains |
| Tax Funds | Finance full IRS payoff | IRS paid in full — lien released immediately |
| Tax Professional (CPA/EA/Attorney) | Strategy, representation, compliance | Expert guidance throughout |
How the Referral Process Works
- Identify the right client situation: See the client scenarios below for a quick checklist of which clients are most likely to benefit.
- Introduce Tax Funds to your client: You can share our website or provide the client with your referral contact information. We handle the financing conversation separately from your tax representation — we never advise on tax strategy.
- Client submits their information: The client completes our 3-minute intake form or contacts a specialist directly. We do a soft inquiry only — no hard credit pull without client consent.
- Specialist review and matching: A Tax Funds specialist reviews the file and matches with appropriate lenders. We keep you informed of progress if the client has authorized information sharing.
- Underwriting and payoff: The lender underwrites, coordinates the IRS lien subordination, and funds the payoff. Lien release follows within 30 days of IRS payment.
Client Situations Best Suited for a Tax Funds Referral
941 Payroll Tax Debt With NFTL
The classic scenario. The business filed 941 returns, couldn't pay, the IRS filed an NFTL. The lien is blocking every financing option. The client is a candidate for tax lien subordination financing to pay the 941 balance in full — releasing the lien, stopping enforcement, and eliminating TFRP exposure. Best candidates: $50,000–$2,000,000 in 941 debt, active business with revenue.
Corporate Tax Debt Blocking a Contract or Transaction
Client is a C-corp or S-corp with IRS debt that is blocking a government contract award, enterprise vendor approval, or M&A transaction. The acquirer or contracting authority requires a clean IRS compliance record. The only path to closing the deal or winning the contract is to pay the IRS and get the lien released — quickly. Tax Funds can move in 15–30 business days.
VDA Settlement Payment Funding
Client has negotiated a favorable Voluntary Disclosure Agreement with a state tax authority, but cannot fund the settlement payment amount within the required 30–90 day window. Losing the VDA would mean reverting to full liability. VDA bridge financing funds the settlement payment so the client can execute the agreement and resolve multi-state exposure.
OIC Lump Sum Payment Funding
The IRS has accepted the OIC. The client has 5 months to pay the accepted amount. The accepted amount is more than the client can pay from operating cash. OIC bridge financing funds the lump-sum settlement payment, preventing OIC default and ensuring the acceptance holds.
Referral Compensation
Tax Funds compensates referring CPAs, EAs, and tax attorneys for closed transactions. Referral fees are structured to comply with applicable professional ethics rules for CPAs (AICPA Code of Professional Conduct), EAs (Circular 230), and attorneys (state bar rules on referral fees). We will not pay a referral fee that would create a conflict of interest with your professional obligations to your client.
Contact us to discuss referral terms. Arrangements are documented in writing and disclosed to clients per applicable professional standards.
Frequently Asked Questions for Tax Professionals
What role does lien subordination play in the financing, and do I need to coordinate with the IRS on my client's behalf?
The lender in the Tax Funds network handles the IRS lien subordination request (Form 14134) directly — this is part of their standard process for these transactions. You do not need to file any IRS forms on the client's behalf for the subordination process, though you may choose to be involved in your representation capacity. If your client has a power of attorney (Form 2848) on file, the IRS will copy you on correspondence. The lender will coordinate with you to ensure payoff amounts are accurate and current.
What interest rates and terms do Tax Funds lenders offer?
Rates vary by lender, loan amount, business profile, and term. Tax lien financing is specialty lending — rates are higher than conventional bank loans due to the complexity and lien risk. However, most businesses find that the total cost of financing is significantly less than the cumulative cost of ongoing IRS penalties, interest, enforcement disruption, and lost business opportunities caused by the unresolved lien. All rates and terms are disclosed to the client before any commitment is made.
How does Tax Funds financing interact with a pending OIC?
If a client has a pending OIC that has not yet been accepted, pursuing financing to pay the IRS in full would withdraw the OIC by virtue of payment — since there is no longer a liability to compromise. You and your client should weigh the certainty and speed of full-payoff financing against the likelihood and timeline of OIC acceptance before referring. If an OIC has already been accepted, OIC bridge financing to fund the lump-sum payment is a specific Tax Funds use case that does not conflict with the OIC acceptance.
Can my client still pursue penalty abatement after the IRS is paid through financing?
Yes. Penalty abatement — including First Time Abatement (FTA) and reasonable cause abatement — is a separate IRS administrative process that can be pursued before or after full payment. If abatement is granted after the IRS has been paid through financing proceeds, the IRS would refund the abated penalty amount. This is an important strategy point: clients who pay the IRS through financing and then successfully obtain abatement effectively reduce their total cost of resolution. We recommend coordinating penalty abatement strategy with the client's tax professional concurrent with or following the payoff.
Is the referral fee arrangement TCPA-compliant if I provide client contact information to Tax Funds?
TCPA compliance is Tax Funds' responsibility in how we contact clients — we obtain express written consent from clients before any marketing communications and follow all applicable TCPA, DNC, and state do-not-call requirements. As the referring professional, you should have your client's authorization before sharing their contact information. We recommend simply directing clients to contact Tax Funds directly (via our website or specialist phone) rather than transferring their contact information without explicit consent, which avoids any TCPA attribution issue on your end.
What documentation should I gather before referring a client?
The most useful documents for an initial Tax Funds assessment are: (1) IRS Account Transcript or TXMODA showing the current balance and lien status, (2) copies of any IRS notices received (CP503, CP504, LT11, or lien filing notices), (3) 3–6 months of business bank statements showing current revenue, and (4) the most recent business tax return. Having these ready at referral accelerates the specialist review and lender matching process significantly — clients with complete documentation often receive a term sheet 3–5 days faster than clients where documentation is assembled after initial contact.
Become a Tax Funds Referral Partner
If you regularly work with business clients who have IRS or state tax debt, a referral relationship with Tax Funds may be valuable to your practice and your clients. Contact us to discuss the program.
To refer a client now or discuss partnership terms, use the form below or call our professional partner line.
Tax Funds is a financing marketplace, not a direct lender and not a tax resolution firm. Referral fees are paid only on closed transactions and are structured to comply with applicable professional ethics rules. This is not tax or legal advice.