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MAY/JUNE 2022
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The Money Is in (Your) Client List!
A Lesson From a Defunct Cruise Line
A fewmonths ago, I heard a piece of bad news: Crystal Cruises went from being worth about $1 billion to having zero in their bank account in a matter of weeks. The headline hit hard because for the last 10 years, Roslyn and I have considered them our favorite cruise line. They’ve taken us to the Baltics, Sweden, Turks and Caicos, the Dominican Republic, and beyond! We started our cruise journey just after we got married in 1985. For our honeymoon, we took a Carnival cruise around Mexico and had a wonderful time. Several years later, we tried another trip on Carnival. Then, as our income rose and our kids got older, we graduated to Royal Caribbean cruises and a few other higher- end lines. Finally, we found Crystal Cruises — and they were the best of the best, like a five-star hotel on the ocean! Crystal’s over-the-top customer service really set them apart. Instead of 4,000 rooms, they had less than 1,000 per ship. The guest to staff ratio was about 2 to 1, and they prided themselves on attention to detail. Plus, everything on the boat was included, like Broadway shows and meals at famous restaurants like Nobu. They were so good, in fact, that even when Roslyn and I went years between cruises, the same staff would be there, remember us, and welcome us back. That’s unheard of in the cruise industry! You might be wondering how on earth a cruise line that good went under. Although there are a lot of unclear facts, it most likely it started with COVID-19 and the shutdown of the cruise industry: many people wanting a refund, one thing leading to
Roslyn & Michael on Their Last Crystal Cruise Vacation
another, and not paying their bills. It also looks like the parent company mismanaged the business so poorly that they ended up owing almost $5 million in unpaid fuel bills. One of the ships actually sailed away from the authorities with passengers onboard to avoid paying the debt. Eventually, police “arrested” and seized the ships in the Bahamas for unpaid fuel bills. Bloomberg wrote an article and called it “Crystal’s Epic Demise.” Now, Crystal Cruises’ line is going through a fire sale. It was worth about $1–$2 billion beforehand, but now, they’ll be lucky to get $400 million for the whole thing …which brings me to the point of this story. The only reason Crystal Cruises is worth a penny right now is because of its customer list. Sure, the line has a ton of debt, and plenty of people are angry about it. But its potential buyers know that vacationers like me and Roslyn loved that cruise line. It had thousands of repeat customers, all well-to-do folks who enjoyed being pampered and taken care of without a worry. When a company buys Crystal, what they’ll really be buying is that list — and the promise of customers who will come back to spend money again and again.
Your tax business isn’t a cruise line, but your customer list is one of your most valuable assets.
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Joy and Pain FOOD FOR THOUGHT
Have you ever noticed during what is considered to be a wonderful moment in your life, there is something not so wonderful going on at the same time? For example, when my daughter Erica was planning her wedding in 2019, I told her, “It’s rare to have a perfect wedding, something always goes wrong, but no matter what it is, don’t let it take away from your day.” For Erica and future husband Ramsey, it was the wedding cake. The bakery forgot to bake it. It sounds worse than it is because I wasn’t even sure they wanted a cake, since they had a dessert station with tables of mini-treats including cake pops, fruit tarts, and a sundae bar. A cake did arrive in time, although it was two tiers instead of four and white celebration instead of lemon. But the cake fiasco was a minor blip on an otherwise perfect day. It’s something we laugh about now, and most important, it’s the “thing”we’re happy that went wrong at the wedding because it wasn’t very important. For the most part, I try to not let the negative experience take away from whatever it is I’m planning, whether it’s personal like a vacation, business like our three-day Success Summit we host every August, or a milestone like celebrating my daughter’s wedding. Then, on the rare occasion, there are the tragic moments in our lives. We all have them. Sometimes we share our emotional pain with others, and other times, we keep it to ourselves as they are too devastating to discuss. So, when my daughter Erica gave birth to the sweetest little girl Emma this past March, I wanted to tell everyone, as it is one of the happiest times in my life. But it is also bittersweet, as there’s no way I can say I’m a grandmother (but you can all me Mimi) without
saying that my first grandchild, Shayla, died before she was born, and Emma is my second grandchild. Over a year ago, when Erica was pregnant with her first child, I wrote about it and also shared one of my most heartbreaking losses that I hadn’t discussed much, and that was the loss of my best friend to suicide. Grief is one of the most painful emotions we feel. At some point, we’re all going to grieve the loss of someone or something. The depth of that heartache and how we react and heal from it is different for everyone, but how it feels is universal. Grief is like an injury — the more the loss, the bigger the wound. And just like time heals the wound but leaves a scar, the same is true for the sadness of losing whoever or whatever is lost; it heals but leaves a scar. Talking about baby loss is a somewhat taboo subject, as I’ve learned many mothers feel guilty about it. I don’t want to write about the details of Erica’s loss because I feel like they are not mine to share, but I needed to say it happened out of respect to her. I never thought about baby loss that much, and not many of my girlfriends ever discussed it. But when Erica shared her tragic experience online, it opened the doors for other moms to no longer feel alone in their grief and start to heal, too. Many women reached out to Erica and let her know how much her story helped them. When I’ve told my friends and other women what Erica went through, so many of them opened up and shared their stories to me of how they’ve lost a baby, stories I never knew about. The women of my generation kept their baby loss and fertility
Mimi and Emma
struggles to themselves, as sometimes the two go hand in hand.
Emma has brought so much joy into not only her mommy and daddy’s life, but also to everyone in the family on both sides. But the pain of losing Shayla will always be remembered. Just like grief is a universal feeling, so are joy and pain. How you deal with it varies according to your beliefs, mindset, and the nature of who you are. It also depends on the severity of what is going on, like the difference between a missing cake versus a loss of a loved one. This brings me back to my question to you: How do you handle the times in your life when there’s joy but also pain going on at the same time?
How do you balance those two emotions simultaneously? It’s something to think about.
–Roslyn Rozbruch
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PRACTICE CORNER FROM THE Top 7 Tips for Representing Your Tax Resolution Clients
Whether you’re dealing with an IRS agent, a client, or even if you’re trying to grow your tax resolution practice, using the strategies I have listed below will not only save you time, money, and energy, but they will also help you avoid costly mistakes. 1. When making the initial contact with an IRS revenue officer (collections) or revenue agent (exam), always ask for their phone and fax numbers as well as their manager’s. This will come in handy when the revenue officer or agent goes “radio silent” or if they violate your client’s rights. 2. Always memorialize your conversations with revenue offers and agents in a fax so this can be included in the case history notes kept by the IRS. This also holds their “feet to fire” when they ignore what they said or promised. 3. When a client doesn’t furnish information requested by you or they have dishonored a fee payment — and you’ve tried twice to remedy the situation — send them a certified letter, with a return receipt requested, that you’ll be disengaging from their case by revoking your power of attorney. This will get their attention and get the case back on track. For Roz Strategies members, you can find this termination letter on the membership site. 4. To avoid client complaints and refunds, always include a “plan B” when doing an offer in compromise (OIC) in your engagement letter. For example, if you are hired to do an OIC, always include two additional service paragraphs: an installment agreement and penalty abatement. This will cut down on complaints and refunds if your OIC is unsuccessful. Remember, at the end of the day, the client is hiring you to protect their income and assets from seizure and to resolve their IRS issue. Additionally, the IRS always has the final word, as they are the final arbiter.
5. One is the loneliest number, especially in business. If you want to grow your tax resolution business to a six-figure business and beyond, you need to employ multiple marketing strategies. You can’t rely on just one, just like you can’t rely on one key employee. Start with one marketing strategy, hone that one, then layer others on top of that. 6. Make sure you have a case status update with your clients every 28 days via a telephone call. This will help to manage client expectations and is GREAT customer service. Your IRS cases are taking longer and longer to resolve due to IRS caseload and personnel issues. Plus, you are charging the client’s credit card or initiating an ACH transfer every month, and clients need to be reassured you are working their cases, especially when you are in a holding pattern with the IRS. They need to know you haven’t abandoned them. 7. Remember, marketing is everything and everything is marketing! When there is a visible scratch on a street/light pole at any Disney Park, it’s immediately repainted. Why? Because Disney knows maintenance is marketing. It’s all about the customer’s experience and what they tell others about you!
–Michael Rozbruch
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Guy Finocchiaro, CPA Founder’s Mastermind Member Spotlight
Not many people start out in tax resolution. Everyone has a story how they ended up representing taxpayers before the IRS, and Guy Finocchiaro is no different. His journey into tax resolution began in 2005, when he graduated from St. John’s University with a master’s in accounting. He landed a job in one of the Big 4 accounting firms and was doing financial statement audits but didn’t like that, so after a couple of years, he left and went to a mid-size CPA firm in Garden City, New York. “That’s where I began my tax education,” Guy says. “I started in January, having no tax knowledge. By October, I had the biggest client in the office, who was averaging $450 million in gross income on his 1040, and I managed that client for about five years.” Eventually, Guy moved on to a smaller firm so he could gain experience with smaller businesses. In 2015, he moved back to a larger firm, but it ended on a low note. “They hired me in January, and I got fired in October,” he says. “I think they hired me just for the season. A month later, I found out my wife was pregnant with our first child, Gaetano.” With a baby on the way, Guy decided to start his own tax and accounting practice in partnership with his wife, Annamaria, who is also a CPA. That first year was very tough. “I literally had five clients, most of them my family and friends,” Guy says. “We did Google SEO and a lot of networking face to face. We went from five to 50 clients in the second year.” About that time, Guy recalls hearing about tax resolution and someone named Michael Rozbruch. Guy said he kept getting emails from Rozbruch
we spend half the time, or even a fraction of the time, and charge higher fees.” Sending out newsletters, mailing referral letters, and doing face-to-face networking is what is working best for Guy to bring in new tax resolution clients. He received a $22,000 fee from a referral after he had coffee with a local CPA he met via LinkedIn. Guy shares that eventually, he’ll want to implement radio and other types of marketing. For now, he and his wife are happy with slow and steady growth, because with the birth of their third son Domenico, two years ago, the couple is very busy keeping up with three boys under age 6. Guy has helped a wide variety of clients, using methods he learned from Roz Strategies. They include a Sports Illustrated model with a $35,000 levy that Guy was able to have released and an audit reconsideration that could save her another $80,000 in deductions. In another case, Guy used the Cohan rule to help an independent consultant who owed $70,000 estimate reasonable expenditures for his business. That client is now paying only $24 a month via an installment agreement to resolve his remaining debt. As the Finocchiaros continue to build their practice, they hope to have time to resume their hobby of traveling. Before COVID-19, Guy and Annamaria traveled all over the world visiting many places, including Tahiti, Paris, the French Rivera, Rome, Florence, the Amalfi Coast, and Jamaica. They plan on traveling again, but with three boys, it will be a different kind of travel. “We promised the boys we’d take them to Disney World. That’ll be a workout!” Guy laughs.
and just deleting them. “No offense to Michael,” says Guy, “but I thought, ‘This guy, he’s not real.’Then after maybe the 10th email, it said, ‘Register now for a quick, 10-minute video on how you can double or triple your revenue.’” Guy decided he could invest 10 minutes to hear what Michael had to say. Afterward, he and Annamaria talked about it, and a couple of months later, they invested in Michael’s Tax Resolution Domination System & Toolkit and delved right in. “We were struggling to get clients,” Guy recalls. “Michael put everything into place with his 8-week program where you get your first client. I got at least two clients within a month or so.” By this time, Guy and Annamaria were the parents of two boys, as Massimo had joined the growing family. Running a typical tax practice was difficult, especially during tax season. They made a decision to focus more on the tax resolution side of business. Guy discovered Michael was right and says, “We can get a tax resolution client where
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The IRS is hiring with one thought in mind: to collect from taxpayers! And in these uncertain times, there is hope! As a tax resolution specialist, you’re in the unique position to save your client’s financial future! At the 7th Annual Virtual Tax Resolution Success Summit, Michael will show you how to unleash your superpowers and save your clients from the dreaded IRS! WHEN: Thursday, Aug. 25, Friday, Aug. 26, and Saturday, Aug. 27
Register now for early bird pricing — expires soon! For more details, visit RozStrategies.com/summit. Don’t get left behind — this
event only takes place once a year!
There will be new speakers and new strategies that can take your practice to the next level or jump-start a practice you’ve dreamed about! For more information, go to RozStrategies.com/summit, contact our Concierge Ruthie at Ruthie@RozStrategies.com, or call our offices at 888.670.0303.
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S H O U T High-five to Amit Chandel for settling his client’s tax debt of $3,677,684 to ZERO! That’s awesome! Kudos to Allan Pearlman for his client receiving a tax refund of $266,937.99, including $37,505.21 in interest. Allan’s three years of work on the case paid off; the client was so thankful that he cried happy tears when he heard the news. Congrats to Victoria Blasiak for negotiating and settling three case debts in one week. The first client’s tax debt was reduced to $100 from $30,000, the second client’s tax debt was reduced to $5,000 from $150,000, and the third client’s debt was reduced to $971 from $179,000. Way to go Sharon Lewis, Tracie Lowe, Linda Nayder, and Brian Brady for giving “10-Minute Share” presentations during our Founder’s Mastermind Meeting. Linda shared that she sends a jar opener with a personalized logo on it in her PTIN mailing. Also thank you to Rhonda Saucedo for giving a short presentation. Rhonda shared that she puts a QR code, which links to a short video about her services, on her marketing materials. Congrats to Rhonda Saucedo, Ross Hitchen, and Joel Gonzalez for retaining their first clients by sending out referral marketing letters. Kudos to Dawn Plagianes and Michael Kadlec , who both have 100% acceptance rates for the Client Care Package (CCP), and to John Behrle , who has only had one client opt out. They received glowing feedback from grateful clients for such great representation and support. Clients even stated that the fee for CCP is inexpensive for service they are receiving in return.
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Your tax business isn’t a cruise line, but your customer list is one of your most valuable assets, too. So, ask yourself, “What am I doing to protect and preserve that list? How am I building a fence around my best customers to make sure they don’t leave me for somebody else?” The answer comes right out of the Crystal Cruises handbook. To keep your clients happy, you need to go above and beyond to provide excellent customer service. That means communicating with your client list regularly, just like we do here at Roz Strategies. You can do this by sending out a monthly print newsletter like the one you’re holding, using email campaigns to announce new services, and sending cards on birthdays, holidays, and anniversaries. The more you communicate, the better! Your clients will stay with you if they know you have a vested interest in making sure they are happy and successful. You should educate them and pamper them, just like Crystal Cruises did with us every time we sailed with them. The stronger your relationship is with your client, the less likely they are to leave you — and the more likely they are to pay a premium for your service! If you have a customer-centric business model, you’ll protect, preserve, and grow your company not just for today but for the long term. Then, when you decide to sell your practice, you can watch that hard work come back to you in a big fat paycheck. In the meantime, I’ll keep an eye out for the cruise line that purchases that list, and you can bet that if they’re
Congrats to Ryan Mitchell and his wife Amy on the birth of their son! High-five to Tracy Janssen, Dianne Omokaro, Joe Kent, Elizabeth Holladay, and Miriam Edwards for mailing out your referral letters.
High-five to Melinda Tolbert for passing the EA exam and becoming an Enrolled Agent!
bought by a reputable company, Roslyn and I will be two of the first people back onboard!
–Michael Rozbruch
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O U T S !
Kudos to Tracie Lowe for speaking to a group of Berkshire Hathaway Realtors on the topic of “Taxation for Real Estate Professionals,” and 100% of those in attendance requested a follow-up consultation with her.
Congratulations to Antonio Nava and family on the birth of his grandson, Sebastian!
Do you have a story or picture to share with us about something you’ve implemented, a client you’ve helped with a tax problem, or anything else you’d like to share? If you do, email it to Info@RozStrategies.com, and we will give a Shout Out to you!
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11271 Ventura Blvd. #612 Studio City, CA 91604 Inside This Issue pg 1 ∙
A Tax Lesson From Crystal Cruises
Joy and Pain
pg 2 ∙
Top 7 Tips for Representing Your Tax Resolution Clients
pg 3 ∙
Member Spotlight
pg 4 ∙
Save the Date!
pg 5 ∙
Shout Outs!
pg 6 ∙
IRS Terror Tale of the Month
pg 8 ∙
IRS Terror Tale of the Month Courtney Love Singing the IRS Blues
Former lead singer for the group Hole, Courtney Love is in the hole with the IRS to the tune of $2.4 million. Love owes back taxes for 2017, 2018, 2019, 2020, and 2021. The bills totals $1.9 million owed to the IRS, and half a million owed to the state of California. According to singer Love, one reason she can’t pay off her liens from the IRS is because of her addictions, specifically her addiction to spending money. “It isn’t a big secret that I suffer from the disease of addiction — in particular, financial stress tends to make me go cuckoo-bananas if I’m triggered by it,” Love wrote in the Financial Times, speaking about her “overspending” and addictive personality.
Drugs and poor money management may also have played a role in her financial state. To complicate matters further, much of the fortune Love has played fast and loose with over the years was inherited from her late husband Kurt Cobain, who passed away in 1994. SK Pop reports her net worth of roughly $100 million comes from her ownership of Cobain’s band Nirvana, his writing and publishing rights, and his possessions. (Speaking of possessions, Love is also locked in a legal battle with her ex-son-in-law over one of Cobain’s guitars and an alleged kidnapping plot … but that’s another story.)
As we write this, there’s no word yet on how Courtney Love is handling the IRS pressure, but she is back in the studio trying to finish up an album she’s been working on for a while. And, who knows, maybe she’s switched from Grunge Rock to singing the Blues.
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