Take a look at the latest edition of The Roz Report!
The Roz Report
SEPTEMBER/OCTOBER 2023 888.670.0303 WWW.ROZSTRATEGIES.COM
AUTHORIZED MEMBER 2023
Use My 4 Strategies to Escape This Business Trap! The Danger of Too Much ‘Success’
Earlier this year, I made a big business mistake. I overextended myself and gave away too much of my most valuable resource: my time. For the last eight months, Roslyn and I have been working nonstop. We’ve run Founder’s and Platinum mastermind events (like our 2-Day Disney Magical Marketing Experience this June), executed our 2023 Virtual Tax Resolution Success Summit, and hosted more webinars, trainings, and Diamond Membership Q&A calls than I can count. Don’t get me wrong — I love this stuff. But when I realized that Roslyn and I wouldn’t even have time to schedule our usual summer vacation, I knew something was wrong. Then, it hit me: I’d made the very mistake I warn so many of my Founder’s Mastermind members against. I’d fallen into a success trap. I should have spotted it earlier. After all, I’ve been here before. In my prior tax resolution business, I defined success by the scale of my company and how busy we were. I had 15,000 square feet of office space, managed 125 employees, and did $23 million in business in one year alone. I thought that was the definition of success. But I was wrong. Eventually, I realized the truth: I wasn’t running my business — my business was running me. I was doing well financially, but I had no free time. After that, I started Roz Strategies and swore I’d never wind up in a success trap again. But recently, Roslyn and I have been so focused on helping our members in new and exciting ways that we’ve let the business creep back toward running us. We have less and less time for ourselves, and that’s not okay in the long term. After all, we have a granddaughter now, and we’re not getting any younger. We need every minute we can get! A lot of business owners end up in success traps like this, so maybe you can relate. Fortunately, I know exactly what you and
I can do to refocus. Here are four strategies I’ve learned over the years that will help you get your time back. I’ve already used No. 4 this summer, and I’m working on perfecting No. 2.
1. Step outside of your ‘grow,
grow, grow’ mindset. You don’t need to do millions of dollars in business to be successful and create wealth. If you run a modest six-figure tax resolution practice, you can still be financially
successful and build the life you desire. I regularly discourage my Founder’s and Platinum Mastermind members from letting their businesses get too big, , and some of them now run concierge style six-figure businesses from their home offices. The bigger your practice is, the more of your time and freedom it will take. 2. Create systems that allow your business to run on autopilot. If you automate your business now, you can go on vacation worry-free later. For example, you should have a robust, automated content marketing system working for you around the clock. I contract with an SEO and social media company that schedules all of my posts on LinkedIn, Facebook, X (formerly Twitter), and Instagram a month in advance. I also use a direct mail vendor who designs, prints, and mails my content for me. That saves me time and money. When you do a cost-benefit analysis, you’ll quickly realize that you’re losing potential revenue by trying to do everything yourself.
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FOOD FOR THOUGHT WHAT’S YOUR FUTURE VISION?
I’m always up for an adventure, especially if it’s fun, but honestly, even a conference can be fun for me. I’ll always find a way to bring a good time into the mix. Several months ago, I had it on my mind for Michael and me to attend a Vivid Vision Retreat hosted by Jennifer Hudye. I’d been thinking about going to one for a couple of years, but now, it was at the forefront of my mind. Michael was hesitant. “We’re so busy and have so much going on right now,” he said. I knew we were busier than ever with our business, but I also thought, is there ever time to do these things? My response was, “You have to go, if I only go, it will only be half of a vision.” I was very focused that I wanted this to happen this year, and Jennifer only puts on these retreats once or twice a year. I didn’t want one more year to pass by without Michael and me writing out our vision. When it comes to realizing my goals, I prefer to look to someone who’s an expert in that field and seek out their knowledge. Michael calls it the “speed of implementation.” I’m just not good at figuring out things on my own. But I’m teachable. And I didn’t want to read a book on how to do this; I wanted to go and learn in person. You might be wondering — what is a Vivid Vision Retreat? Simply put, this is a three-day event designed as a way to help you gain clarity on the vision of what you want your goals
“Give yourself permission to follow your vision.”
to be in three years, whether it’s for your personal life or for your business. For Michael and me, it was for our business. We already achieved a lot of what we had set out to do, and we had so-called “arrived” at our milestones and now wanted to create a new vision for our company. It’s not like we don’t share our goals with our Roz Team; we do, but my plan was to have it written out in a document where it specifically said what they were. We wanted to learn how to communicate our vision with our team and for them to see what it was we actually had in mind as well as the goals we had for them. Jennifer guides attendees through a specific process with templates for everyone to create their vision. It’s great to have company goals, but it’s better if everyone working with you knows what they are and is aligned with your vision. It’s hard to write out everything Michael and I received from attending this three-day retreat, but besides having more clarity on what our plans are for the next three years, this event gave us the motivation and feeling of “We got this, we know what it is we want, and we’re going to follow this new path.” So many times when we have dreams of what we want to achieve, it’s hard to even know if it’s possible. I pretty much have always followed the philosophy in my life to tap into my intuition and find ways to figure out that thing I want to achieve in my life — which brings me back to you. What are some of the dreams you have for yourself? What are your goals? Whatever they are, you have the ability to figure it out. The first thing you need to do is give yourself permission to follow your vision. You don’t need all the answers to how it’s going to happen; you just need to know it’s possible, and you’re worth it. –Roslyn Rozbruch
Jennifer Hudye, Michael, and Roslyn out to dinner celebrating their Vivid Vision
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From the Practice Corner: THE IRS UPDATE
As you know by now, Congress authorized $80 billion for the IRS as part of the 2022 Inflation Reduction Act. Of that $80 billion, $45.6 billion is earmarked strictly for compliance and enforcement. The IRS is using most of this money to hire 87,000 new personnel and to modernize their 1960s-era computer systems so they can quickly and more easily identify non-filers, garnish paychecks, levy bank accounts, and file federal tax liens against your clients. The IRS has already hired over 10,000 new Practitioner Priority Service (PPS) assistors, Automated Collection System (ACS) operators, Revenue Officers, Revenue Agents, and Special (CI) Agents. Since most of the $80 billion is going to be spent in the next few years, we are going to see a gradual ramp-up in many more audit and collection cases. The IRS is going to be auditing many more pass-through entities (like Subchapter S corporations) for reasonable compensation (941 employment tax) issues and high-income earners, specifically non-filers who are earning over $100,000 whether on a W-2 or
Schedule C. Other areas the IRS is focusing on are cryptocurrency traders, LLCs, and partnerships. Also, the recent congressional claw back of $20 billion (of the $80 billion), over several years, will have very little to no effect on reducing the IRS’ compliance and enforcement initiatives already set in motion. They still have plenty of funds to carry this out. Let’s be real for a minute ... the IRS collected $4.9 trillion in 2022, representing 97% of the United States’ total budget. Everyone knows, politicians included, that the IRS is not going anywhere and has been starved of proper funding for nearly a decade. As of this writing, the IRS floodgates are open, as they are hiring new revenue officers and new revenue agents in addition to the 10,000 new hires I mentioned. In June 2023, the IRS started sending out 8 million automated collection notices, reversing their “hands- off” approach during COVID-19. There is a sense of urgency to spend this new funding in the earlier years, even though it is supposed to be spread out over 10
years because the current administration is afraid of a new administration coming into power and reversing course. What this means for you is that now is the time to get your name out there. Now is the time to market your firm. Now is the time to be online so prospects can find and hire you. Therefore, it’s important to start or ramp up marketing now so when people do a search in your local area, your name comes up and you get the business. We are already seeing an influx of new tax resolution cases like we have never seen before. I have been in this business for a long time. The last time the stars aligned like this (major IRS funding and a recession) was back in 2009-2011, during the Great Recession. I had my most profitable years during that time. We’re going to see IRS staffing levels, audits, and collections cases that we haven’t seen since 2010. Are you ready? Can people who need help find you? What are you doing to capitalize on this opportunity? –Michael Rozbruch
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Sometimes, our biggest strength is also our biggest weakness. For Jesus Abikarram, owner of Freedom Tax Resolution in Florida, he says being a risk-taker is his strength and weakness. When it comes to investing in his tax resolution practice, risk- taking has proven to be his strength. Jesus began his career in the tax industry when he was only 18. He started in 1992 as an insurance broker, but within a year, he turned to doing taxes. He knew he wanted his own office and says, “I sold my car, had a little bit of money saved, a couple hundred bucks, filed my taxes really early, and opened my first office. On Feb. 10, 1993, I did my first tax return. How’s that for a startup?” Jesus tends to trust his instincts and make decisions quickly if he feels it’s the right thing to do. Years ago, while attending a tax conference, he came across a tax resolution conference and says, “That triggered my interest, and I started learning about the subject and attending educational conferences. I became an Enrolled Agent (EA), and an NTPI Fellow.” How Jesus passed the EA exams might sound hard to believe but is true. “I purchased the study material for the test, didn’t open a single book because I’m an audio-visual learner, and just started listening to the audio. I took test No. 1, then No. 3, and then No. 2,” he says. Jesus passed each test the first time and is glad he’s never had to take a test twice. When it came to purchasing the Tax Resolution Domination System (TRD), that took a little more time. Sometime in 2016, Jesus became aware of Roz Strategies and Michael, but he wasn’t sure he believed what he was hearing. Then, one of Michael’s marketing strategies caught Jesus’ eye. He received a Roz Strategies mailer where Michael’s face was on the postage stamp. Somehow, that particular mailer interested Jesus to learn more about the TRD, and he says, “I said, ‘You know what? This guy must be telling some truth in his story. Let me jump on one of his webinars.’ I did and I bought the Domination System.” Jesus Abikarram, Enrolled Agent PLATINUM MASTERMIND MEMBER SPOTLIGHT
That was in 2018, and three years ago, Jesus joined the Platinum Mastermind. During these years, he has focused his time and money on his marketing and says marketing is everything. Although, he admits the upfront investment in marketing was one of the hurdles he needed to overcome. But it’s all been worth it because his bottom line has increased threefold since he began following the strategies in the TRD and being in the mastermind. On his definition of success, Jesus says, “Having a steady flow of clientele being serviced with a good staff that I’m able to guide and lead and have the business working without so much intervention.” He adds, “It gives me more time to do the marketing, and I like marketing!” Jesus also likes helping taxpayers. One of his favorite success stories is about a retired couple — both were sick and could no longer work. “The husband got the money out of his 401(k) to buy a house for his wife in case he passed so she wouldn’t have to go to probate. He found himself with a huge tax debt because no one told him he had to pay taxes on the money taken from the 401(k). I was able to help him settle his debt for 1 dollar. The couple owed $34,000, which was a lot of money for them.” Jesus also credits the Platinum Mastermind for helping him succeed. “What I really appreciate is the openness of the people in the meetings where they say what is working and what’s not. Then, take Michael’s recommendation on the subject matter and run with it, get it done,” he says. When Jesus isn’t spending his time and money on marketing, he enjoys life in Pembroke Pines with his wife, Lourdes. They have three adult daughters, and they enjoy getting together for holidays, birthdays, and other gatherings about once a month. “My hobbies are just having fun with my family,” Jesus says, “and we love to travel. We usually go back home to the Dominican Republic to spend time with relatives.”
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Founder’s Applications Are Now Being Accepted for 2023/2024!
The Founder’s Mastermind is a one-year mentorship program for people who want a mastermind experience but do not yet meet the criteria for our higher-level Platinum Mastermind Group. The
Founder’s Mastermind is a one-year “Zoom-Zilla” style program, where Michael can see and interact with everyone, including during breakout sessions broadcast live from our own studio. In addition to the four (4) 1-day immersions, including two on technical, one on marketing, and one on sales, the fourth immersion day is expanded to include a two-day in-person experience, with a second day Bonus training. There are also quarterly Zoom “hot seat” sessions as well as numerous other benefits that Founder’s offers. We generally have something going on almost every month for Founder’s. The goal of the Founder’s Mastermind is to provide you with confidence via mastery of the subject matter and input from Michael, his expert speakers, and your peers so you can resolve your cases with CONFIDENCE and grow your business and take your practice to the next level.
For more information, contact John Israelian,
Sales & Client Care Executive at John@RozStrategies.com or call our offices at 888.670.0303. If you would like a brochure mailed to you, email us at Info@RozStrategies.com and we’ll rush you an info package!
“Founder’s Mastermind! I don’t mean to sound like an advertisement. I would like to fully endorse membership in this mastermind group. I am a proud member, and let me tell you, it has elevated my game to a new level over the past two years. This is the place to be if you are ready to go to the next level with your tax resolution practice.” –David Rappaport
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3. Restructure your pricing to ensure you’re charging what you’re worth. If you undervalue your service, you’ll spend a lot more time working. Think about it: A tax resolution client should pay at least $5,000. But my average client spent $8,700, and some of our members average close to $10,000 per case. By valuing your skill properly and employing accurate fees and pricing, you can make the same money, or more, with fewer clients. 4. Align your tasks with your vision for the future. This was the big one for me and Roslyn this year. In May, we went on a three- day Vision Driven retreat where we came up with a Vivid Vision plan for our personal and professional lives. Now, everything we do aligns with our vision of where we’d like to be in three years on Dec. 31, 2026. Instead of going to our vision, we’re acting from our vision. You can do the same thing, and if your vision involves spending more time with your family and less on your business, you can make that happen. Escaping the success trap can be challenging, but with these four strategies, you can create a thriving, lucrative business that takes less day- to-day work. Roslyn and I are on that journey now, and I know it will make our company even better. The Vision Driven retreat helped us refocus on the things that truly matter, like running a successful 2023 Virtual Tax Resolution Success Summit (if you attended, it was great to see you!) and planning the next steps for our Founder’s Mastermind group, including a two- day live event here in Los Angeles in 2024.
Congratulations to Platinum Mastermind member Randy Martin for the release of his new book, “IRS Problem Solving Secrets” and for having it hit No. 1 on the Amazon Best Sellers list! That’s something to be proud of! Also, another shout out for saving his client $288,365 by reducing the client’s IRS tax liability from $295,865 to $7,500! A round of applause goes to these Roz Strategies members: Jonathan Donenfeld , Timalyn Bowens , Deltrease Hart-Anderson , and Logan Allec for making it to the Top
10 of FeedSpot’s “20 Best IRS Podcasts Worth Listening To in 2023” list. It’s not an easy task to make it to a Top 10 list, and it’s amazing to see four Roz members on that list! Keep up the great work! High-five to Patrick Noone for correcting his clients’ IRS balance. Now, instead of his clients owing the IRS $66,000, they have zero balance due!
Kudos to Jesus Abikarram for speaking at the Latino Tax Fest.
Way to go, Tracie and Jerome Lowe , for closing $20,000 in sales in two days. Congrats to David Tudor for negotiating some great settlements for his clients recently, including obtaining a first-time penalty abatement for $880 for one client, releasing a levy and reaching an agreement that the IRS owes $10,000 plus interest for another client, and negotiating with the Chief Counsel to waive 50% of the late file penalty for a third client. Way to go, Deltrease Hart-Anderson , for being quoted as an expert in the Nasdaq online article, “These Are the Receipts to Keep for Doing Your Taxes.” Congratulations to Dionne Cheshier for winning the 2023 5-Star Professional Award in the August issue of Texas Monthly magazine!
If you’re interested in learning more about Founder’s Mastermind but didn’t sign up at the Success Summit, it’s not too late. Scan the QR code or contact John Israelian
(Info@RozStrategies.com, 888.670.0303), and we’ll mail you an information package that tells you everything about the program. If you’re stuck in a tricky success trap, the extra lessons I teach there will help you get out. –Michael Rozbruch
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High-five to Ross Hitchen for negotiating a $41,000 penalty abatement for his client after a 10-minute talk with a revenue agent. That’s a great day! Congrats to Jon Neal for retaining a client for a $28,000 fee, whom he originally spoke to in November 2021. It’s all in the follow-up! Way to go, Daniel Cotts , for signing two clients and closing $71,000 in fees! High-five to Daniela Romero for receiving her first referral using the referral letter. Keep mailing out those letters! Kudos to Cynthia Finkenbinder for implementing the no-hassle social media posts. Congratulations to Boyce Goff on celebrating his 52nd anniversary with his wife. A toast to you both! High-five to Cynthia Finkenbinder , Paulette Marshall , Leslie Murphy , Joy Spicer , Adietra Duval , and John Sterbick for mailing out referral letters. OUTS !
Happy Birthday to Our Members!
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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Inside This Issue pg 1 ∙ How to Escape the Success Trap pg 2 ∙ What’s Your Future Vision? pg 3 ∙ The IRS Update pg 4 ∙ Mastermind Member Spotlight pg 5 ∙ We’re Accepting Founder’s Applications Now! pg 6 ∙ Shout Outs! pg 8 ∙ Tax Trouble in Tinseltown: Inside Danny Trejo’s $1.1 Million IRS Deal
IRS Terror Tale of the Month The IRS Squeezes $1.1 Million From Bankrupt Actor Danny Trejo
Actor Danny Trejo is best known for action films like “Spy Kids,”“Machete,” and “Desperado” — but now, he’s under fire in real life. This February, Trejo filed for Chapter 11 bankruptcy when the IRS came calling for its share: over $2 million in unpaid back taxes, all accrued through Trejo’s incorrect deductions. Trejo’s filing listed a total of $3.6 million in liabilities and just $2.2 million in assets. But if he hoped crying, “Bankrupt!” would save him from the IRS completely, he was dead wrong. Trejo earned more than $6 million in the last three years from his acting gigs and business investments (including Trejo’s Tacos, Trejo’s Coffee & Donuts,
and the record label Trejo’s Music), so the IRS still wants its cut. This summer, the Hollywood star proposed a deal requiring him to pay the agency $1.1 million by 2028. If the ink dries on the agreement, Trejo will shell out $200,000 per year to the agency from October 2023 to February 2028. Then, he’ll add another $300,000 to the pot for a total of $1.1 million. Additionally, in August 2023, Trejo had to put his second home up for sale, due to his lack of work because of Hollywood’s writers and actors strike, so he can meet the terms of the 60-month repayment plan to the IRS through the Chapter 11 bankruptcy.
This may seem like a bundle for a man with just $2.2 million in assets, but records show Trejo typically makes about $2 million per year with just $168,000 in annual expenses. When you crunch the numbers, it seems he shouldn’t have any trouble paying off the IRS, and thanks to the payment plan, he’ll save nearly $1 million in the process. It’s worth noting that Trejo only filed for personal bankruptcy — leaving his successful taco, doughnut, and music empires untouched. Between that safety net and his payment plan, odds are he’ll end up okay from his “Desperado”-style IRS tangle, albeit with lighter pockets.
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