Tag Archives: business tips

Combatting an Unsuccessful Offer in Compromise

Let me ask you a question. If a client hires you to do an Offer in Compromise and you’re not successful should you give the client their money back?

Well, let me ask you this question. If you hired an attorney in a civil or God forbid a criminal matter, and your case went to a jury and the jury sided in the favor of the Plaintiff, doesn’t the attorney get paid regardless? Of course he does. Well, it’s the same here. And a well-crafted engagement letter will combat any type of refund that the client thinks they’re entitled to.

For example, in my engagement letter, I always put in option 2, or Plan B. If somebody hired me for an Offer in Compromise my engagement letter stated the Offer in Compromise paragraph, and right underneath that, OR, in big bold letters. The 2 letters, the word OR – e.g. “OR a properly structured Installment Agreement and a Penalty Abatement.” This way I was covered because if I couldn’t get the Offer in Compromise accepted, at least I can negotiate a properly structured Installment Agreement and couple that with a Penalty Abatement.

At the end of the day, the IRS is the final arbiter. They have the final word. Even if you’ve been very, very successful with Offers in Compromise and you have a high acceptance rate, but the OIC didn’t go through for whatever reason, you do not have to refund any money back to the client. You’ve earned your fee by representing that client and getting them a permanent resolution. It may not have been an Offer in Compromise, but it’s an Installment Agreement that they can live with, and also you attempted to get some penalties abated.

So in the initial consultation when you go over the client’s duties, you also go over a well-crafted engagement letter. In the letter, you specifically say that the IRS has the last word. There’s no guarantee, and there is no guarantee in this industry, there is no guarantee in this work. Please don’t guarantee anybody you’re going to get a certain resolution for them because that’s a recipe for disaster.

Until next time,

michael rozbruch tax and business solutions academy

IRS Marketing

How do you take something that the IRS has said and turn that into a marketing opportunity?

Well, last week Nina Olson, who’s the National Taxpayer Advocate at IRS, came out and stated that the real audit rate in the United States is 6.2%, not 7/10 of 1%. Just to put that in perspective, 7/10 of 1% equates to just over a million audits, and 6.2% equates to nearly 7 million audits. So who’s right? Who’s wrong?

How do you turn that into a marketing opportunity? Here is what the IRS is doing. Their headcount has been decimated over the last 3 or 4 years. It’s down by 23%. So more and more, the IRS is relying on technology, and their computers are generating automatic notices. 70% of the time they’re incorrect. But here’s what the deal is, the IRS knows that there are much less protection rights for taxpayers when they send out these under reporting notices or these math error notices. There are no appeal rights with those. Not like in a real audit where you can appeal it. So your clients are getting all these notices to the tune of 7 or 8 million notices a year that the IRS doesn’t consider an audit. But to you and to your client, if they’re questioning an item on their return, that’s an audit.

So when you’re talking to your client about your Audit Protection Plan, it’s important to let them know that you’re handling all of these notices, not just audits. It’s very, very important. And the IRS is going to be sending more and more and more of these out as years go by, especially with the new Tax Reform Bill that was just signed and that’s effective in 2018. So take that information. Use it in handling objections. Use it as a marketing strategy that the IRS is sending out all these notices, which in fact is very, very true. You have to defend and resolve them. Your time is valuable. You’re either going to charge the client on an hourly basis or with one low annual fee in your Audit Protection Plan, which takes care of responding to all of these notices.

Until next time,

michael rozbruch tax and business solutions academy


$10,000 Investment

What would you do if I gave you $10,000 today to invest in your business, and you couldn’t pay yourself a bonus of $10,000?

Now the vast majority of you would answer marketing and education. So if someone gave me $10,000 today this is what I would spend it on in terms of marketing.

The first thing I would do is do radio. There are many, many stations throughout the United States where you can get on the air waves for $2,000-$3,000 a month. So you can run a direct response tax resolution ad and get out on the air waves for about $2,000 or $3,000 a month.

The second thing I would do is buy a list. Buy a small list of people who already have Notices of Federal Tax Liens filed against them. And I would do a 3-step direct mail campaign to that small list.

And then the third thing I would do is get a phone system because once you start marketing you’re going to be getting calls so you need someone to answer the phone. And by the way, remember, the case value of just one client for a tax resolution case is $5,000. So I would make sure I had an up to date phone system, a voice over internet protocol, or VOIP phone system is the way to go today, and I would make sure that that phone is answered live. So you can have a virtual assistant answering that phone, or there are many other options to have your phones answered live today where you don’t necessarily have to put somebody on your payroll.

Watch the video to find out the fourth thing I would do with the last portion of the $10,000 investment.

So those are the things, and I wouldn’t necessarily do them all at the same time. I would space it out and spread it out. That’s what I would do if I had $10,000 today to invest in my business, and remember the case value for one tax resolution is $5,000.

Until next time,

michael rozbruch tax and business solutions academy

Should You Be Using Yelp?

Should you be using Yelp to market your tax practice?

The answer to that is an unequivocal yes because they have a free version and an advertising paid version, very similar to what Facebook is. Facebook as you know, allows you to set up a Facebook account and also advertise. But Yelp itself was started in 2004 as a restaurant review site. People would check Yelp reviews if they were going to their favorite restaurant.  So it started like 14 years ago. But since then, it has dramatically improved their platform and their search results.  Right now there are 70 million people searching and going to Yelp and they’re looking at your tax business before they make a decision.  So whether you have an exclusive tax resolution stand-alone practice, or you have a traditional CPA tax practice that does tax resolution, you should definitely be on Yelp.

And here’s how it works. You need to ask your clients, your customers to post reviews on Yelp. Because as you post more reviews on Yelp you will come up on the first page of search results. When someone is searching for your company, Google and Yahoo automatically put people’s Yelp profiles on the search results. So you want to get your clients to give you positive reviews on Yelp so that you can come up in the search results organically without paying to be on the first page of search results.    

Also, I’m going to give you some tips to get started on Yelp. The first thing you want to do is go to Yelp and claim your business.  

The second thing you want to do is add photos into your profile.  And you want to add as much copy and text into your profile as possible. There’s a lot of real estate there where you can use a lot of direct response keywords and phrases for your tax resolution business.  And the photos can be of your conference room, of your reception area, of your employees, of some Offer in Compromise acceptance letters, images of those would be great to use in Yelp.

Watch the video now to find out the third thing you should do to get started on Yelp.

Until next time,

michael rozbruch tax and business solutions academy


Four Ways to Increase Profits in Any Business

There are only 4 ways to increase profits and revenue in any business. 

It doesn’t matter if you’re a brick and mortar retailer, a wholesaler, distributor, or even own a professional practice — there are only 4 ways to increase revenue.

One way is to go out and obtain brand new clients – which is difficult and expensive.

Another way is to increase repeat transactions, but that’s not an option for most tax or accounting practices.

The third strategy is to increase fees, increase your hourly rates, which is all fine and good, but you may find yourself having uncomfortable conversations defending your actions with clients.

And, the fourth strategy is by far the most profitable because 95% of the income drops straight to the bottom line!

The 4th strategy is about bringing aligning your practice with continuity income, passive income, membership income.

Watch this week’s video to learn more about the fourth strategy!Michael Rozbruch Video on 4 Ways to Increase Profits

Tax Resolution Practitioners:

Would you like to add $25,000 – $50,000+ of additional recurring revenue each year while doing the same amount of work you’re already doing? 

To learn more REGISTER HERE FOR THE WEBINAR on how to implement your own Audit Protection Plan to add additional revenue to your business.