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Why Aren’t You Giving Your Clients Hope?
The Roz Report
MARCH/APRIL 2022
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AUTHORIZED MEMBER 2022
As seen on...
What Does a ‘68 Oldsmobile 4-4-2 and Tax Resolution Have in Common?
The Secret to Leveling Up Your Practice
One of my most prized possessions is my 1968 Oldsmobile 4-4-2 muscle car, and it’s highly modified (at 600 horsepower!). I’ve had it for nearly 20 years, and I’ve cherished it for so long because it’s a replica of the first car I ever owned. I bought the original Olds in 1971 when I was just 16 years old, but I couldn’t hang onto it. When the buyer drove it away, I made myself a promise: When I have themeans, I’ll get another car just like that one andmake it my own. Thirty years later, I made good on that promise, all the way down to the black vinyl top, saffron yellow paint, and black racing stripes. Why am I telling you about my car?Well, this winter, the Olds started acting up. Every time I punched the gas, pressure built up in the engine block and forced all of the coolant out of the radiator and overflowed. If you don’t speak car, let’s just say this: I had a mysterious engine problem. Finding the cause proved tricky. My mechanic and friend, Harry, and I had to use the process of elimination to determine what was wrong with the engine and how to fix it. We went through it step-by-step. Was it the thermostat? Nope. Was it the cylinder heads? Nope. Finally, Harry discovered that I had a cracked valve. After a little work, he fixed it up, and I knew I’d never have that particular engine problem again! This process of trial and error remindedme of an important tax resolution lesson: Diagnostic testing is vital to determine what kind of tax problem a prospective client has and how to fix it. When a prospective client comes to you, all they know is that the IRS is breathing down their neck, takingmoney out of their bank account, and sending them threatening collection notices. They might have no idea why! It’s up to you to find out for your sake and theirs.
Michael with his ’68 Olds 4-4-2
Diagnostics benefit both of you, because properly figuring out their problemdoes several things.
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The ABCs of Adulthood FOOD FOR THOUGHT
Growing up in school, we learn the ABCs, but as an adult, I have a different set of ABCs. I call them the “Always Be Changing,” learning, and growing. I apply that philosophy in every area of my life. When it comes to change, it’s uncomfortable for everyone, not just me. Recently, Ruthie, my right-hand person, moved to Texas. She moved for a variety of reasons, but one of them was to be near her mother and brother. For some background, Ruthie used to work for Michael when he had his tax resolution company over eight years ago. She left that company after Michael did, worked elsewhere for several years, and joined the Roz Team a little over two years ago. I hit it off with Ruthie right away. She’s smart and hardworking with an easygoing personality. Even though she had experience with tax resolution, our business is completely different than helping taxpayers with their IRS problems. We are an education, marketing, and sales business. It takes about a year working at our company to fully understand how we do things. Even though we’re always incorporating new things, we do have some things set in place like our annual Success Summit in August. As a small company, we all work together, and we needed Ruthie to be a part of the team, but I also needed her to work closely with me. From experience, I know people’s first impression of me is that I’m this easygoing person. And I am to a point, but I also like things done a certain way, and I’m very detail-oriented. I let anyone who works for me know upfront: I’m fair, I’m patient, but I’m not easy . The first year working with Ruthie was challenging for her, but we “clicked,” and she learned quickly. Then in December 2021, Ruthie let Michael and me know she’d be moving to Texas by January 2022, and my heart sank. I didn’t want her to leave. Plus, anyone who owns a business knows what a hassle it is to hire someone new. She shared that it wasn’t an easy decision for her and explained the reasons for her move. I’m a strong believer in going with the flow of your life and following your instincts. I knew how hard she wanted to make it work for her to stay in Los Angeles, but every time she decided to stay, something would happen that would make her question herself why she stayed. I told her that as much as I didn’t want her to leave, I also believed it was meant to be for her to make this change in her life, and Michael and I supported her decision.
The Roz Team: John, Ruthie, Michael, Roslyn, Karen, and Becky
Ruthie also shared how much she loved working with Michael, me, and everyone else, and she made a proposition of working remotely. If she would have said this in 2019, or any time before that, the answer would be a definite no. But during the pandemic, Michael had it set up for all of us to work remotely if necessary, and there were many days, where someone was working from home. Ruthie was very specific in how she could work with the team from afar and manage her projects and also come into the office when we needed her for mastermind meetings and product launches. We decided to give it a try. It’s now March, and we’re a few months into this new arrangement, and while we’re still in the trial phase, so far so good. And to be fair to the other members of the Roz team— Becky, John, Karen, and Isaac — they helped play a role in this because we all work together well. We all support and cheer each other on. The last two-plus years have been challenging for everyone, but I’m grateful to have such a great group of people to work with. Do I like changing things that are already working? No. But as I mentioned earlier, I follow my adult ABCs — Always Be Changing. Sometimes I make a conscious change, and
sometimes it’s a forced one, like an employee moving out of state but sharing a way to make it work. But either way, I always make it a learning and growing experience. What about you? How well do you adapt to change and learn from it? It’s something to think about. –Roslyn Rozbruch
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PRACTICE CORNER FROM THE
7 Reasons to Increase Your Fees
I usually don’t write about the “tax preparation space,” but with everything I have witnessed over the last 24 months, I felt compelled to address fee increases this month in my column, as so many of you have a traditional tax and accounting practice in addition to your tax resolution business. Reason No. 1: Changing Legislation There have been four (yes, four!) major tax bills signed into law in the last two years. This is unprecedented. Accountants had to deal with the CARES Act, the PPP Program, The American Jobs Act, and the American Families Plan. All of this means it’s taking you at least 30% longer to prepare 1040s now than it did in 2019. Reason No. 2: Responding to Notices, Notices, and More Notices The IRS issued 14 million “math error” notices in 2021 (compare that to just 629,000 in 2019). The IRS is on schedule to issue another 20 million more in 2022. These are being generated regarding stimulus check payments and the advance child tax credit payments issued to taxpayers. The vast majority of these are incorrect that you need to respond to on behalf of your client. This will take 30% or more additional time than it did in 2019. Are you sensing there is a theme here? (Those of you smart enough to implement my Client Care Package System & Toolkit this year are at least getting paid separately for all of this work!) Reason #3: The IRS In 2019, the IRS received about 100 million telephone calls from taxpayers. Last year, with all the new tax law changes, that jumped to 286 million phone calls. Only 11% (that’s right — only 11%) of those received an answer. Have you seen the wait and hold times increase trying to get a PPS or ACS agent on the phone lately? The time spent trying to get a hold of the IRS needs to be factored into your fees as well. Reason No. 4: Many Older Accountants Many smaller tax prep owners have simply “walked away” due to the craziness of the last two tax seasons. This means there is more demand (people getting their returns prepared) than supply. It’s macroeconomics 101.
Reason No. 5: Continuing Professional Education (CPE) Investment In order to keep up and grow your knowledge with all the new tax law changes, most accountants are having to spend more of their money and time learning about all the new tax changes to accurately prepare returns this season. Reason No. 6: COLA The inflation rate is pushing 7% in just one year. Have you noticed that everything is more expensive now? Your clients have. As an example, used car prices are up over 30% higher this year compared to last. Reason No. 7: Processing and Refund Delays If you prepare a return this tax season and you don’t accurately report what your client received in 2021 regarding stimulus check payments and/or child tax credit payments, the IRS will issue a “math error” notice. This will delay the processing of that return and any associated refunds by 240–270 days. Who do you think is going to be tasked to bird-dog this until the return is processed? That’s right, you. For all for the reasons mentioned here, it’s going to take you much longer (upward of 30%–50% longer) to prepare tax returns this season than it ever did before. Are you still charging the same fees you did in 2019? In 2020? Have you only increased fees by 5% or 10%? If you haven’t included this new reality into pricing out your tax preparation fees, you’re operating in the stone age. Don’t undervalue or underestimate your worth. It’s time to raise your fees.
–Michael Rozbruch
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Jonathan Donenfeld, CPA Platinum Mastermind Member Spotlight
After spending the first decade of his career in tax, accounting, and finance, Jonathan Donenfeld found a niche like no other: tax resolution. On the first case he worked, he had a client who owed over $200,000 to IRS, and he was able to settle for $25,000. “He was the happiest I’d ever seen a client. I’d done thousands of tax returns, and no one had ever been that happy. It was a great feeling.” Jonathan is the president and founder of JLDTax Resolution Group, a New Jersey- based firmwith offices that look out at over Manhattan and theWorldTrade Center. He began his career as a clerk on the floor of the NewYork Stock Exchange. Several years later, he transitioned to working as an accountant with top accounting and consulting firms in New York City and New Jersey. During this time, he earned a master’s in accounting and his CPA credential. In 2015, he started his own practice. “I had done some resolution work inmy previous jobs and a little bit onmy own,” Jonathan says. In 2018, he decided to focus on helping individuals and small businesses resolve back tax issues.
clients, and I use whatever I can get from him.”
Two of the strategies Jonathan uses the most that have been helpful to him are the intake script for speaking with clients to obtain their financial information and the follow-up system to continue to reach out to prospects who do not sign up right away. “You just have to put in the time, effort, andmoney,”he says. All of Jonathan’s efforts are paying off, as he’s on track to do well over seven figures this year just from tax resolution. Jonathan shares a recent success story about a doctor who came to him and owed over $2 million. The doctor was being pursued by the IRS, the state of New Jersey, and the state of NewYork. Jonathan was able to set up payment plans with both states, and he negotiated a great settlement with the IRS via a partial-pay installment agreement. “The client is super happy. The CPA who referred him is very happy. It took a long time and was a lot of work, but we’re very happy with the results,”Jonathan says. Jonathan says it’s challenging dealing with the IRS because not only do clients have different issues to deal with, but laws and procedures are also always changing and every agent is different. “Some of the agents are better than others, so you have to figure out how to deal with all of them,” he says. “But overall, it’s a great field, and I really love doing it.” Jonathan is married to Alexandra, and they have two children, 5-year-old Elsa and 2-year-old Manny. Having two young, active, and rambunctious children keeps Jonathan very busy. “Pretty much, my life is tax resolution and spending time with my wife and children,” Jonathan says with a laugh.
conference. Jonathan had discussed a case he was working on with a friend, and the friend recommended Jonathan attend the conference. “During that conference, I heard some of the people talk about Michael Rozbruch. I looked himup on the internet and then eventually bought his Domination Kit.” In the beginning, Jonathan used the tools and strategies here and there, but when he realized how well Michael’s System andToolkit worked, Jonathan went all in. Using direct mail to get referrals is one of the strategies Jonathan is using with success that was a surprise to him. “Direct mail is something I had never thought of — I thought technology, computers —but I started to do that and get some responses,”he says.
This focus on tax resolution came when Jonathan attended his first tax resolution
‘Direct mail is something I had never thought of — I thought technology, computers — but I started to do that and get some responses,’ he says.
When asked what is working best for him now, Jonathan has a quick answer.
“Well, it’s everything. With Michael, he gives you a blueprint. You have to learn and study what he gives, then you practice it, use it, and continue to use it. It works over time. He provides a lot of guidance, a lot of different ways to generate leads, the way to work with
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Extra! Extra! The Early Bird Special Is Here! Don’t Miss Out!
SAVE THE DATE Thursday, Aug. 25 Friday, Aug. 26 Saturday, Aug. 27 Register now for early-bird pricing. For more details, visit RozStrategies.com/summit Who do you want to be Virtual Tax Resolution Success Summit We’ll Show You How to Be a Hero to Your Client! This will be an action-packed 3-day event where not only does Michael help you get your 12-month marketing plan in place with actionable strategies, but he also brings in experts showing you the latest technological and practice management tactics working now in the tax resolution industry. For more information, go to RozStrategies.com/summit, contact our Concierge Ruthie at Ruthie@RozStrategies. com, or call our offices at 888-670-0303. This event only takes place once a year! There is NO other marketing and sales tax resolution event like this one. a hero to? At the 7th Annual
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S H O U T
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It shows the client how you can help them. It convinces them you’re savvy enough to get their business.
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It helps you price the case.
Clearly, this is a win-win situation. But diagnosing a tax problem isn’t always easy. To help you run through all of the possibilities, we’ve put together a list of 14 vital diagnostics questions for our Roz Strategies members to ask duringMini 433- A Financial Consultations. This list helps you diagnose any tax resolution case and prescribe the solution, whether it’s an offer in compromise, an installment agreement, or a partial-pay payment plan. If you already have a copy of the list, consider this your reminder to pull it out and use it! If you don’t, there are plenty of ways to get one. I teach the whole process at our August Tax Resolution Success Summit, and it’s also part of the Tax Resolution Domination System&Toolkit. As you put the list into action, remember that how you start the conversation and the tone you use are just as important as the questions. One of my favorite ways to start a Mini 433-A Financial Consultation is with this transition statement, “Hey [client’s name], I’mnot sure if I’m the right guy who can help you solve your IRS problem. I don’t even know if we’re the right firm for you. But to see if I can help, would youmind if I asked you a few questions?” These sentences were worthmillions of dollars tome. They turn the tables, and all of a sudden, the prospect is trying to convince me to take their case! It’s what I call “take-away”selling. Add the 14 questions on top of that and you’re sure to turn this prospect into a paying tax resolution client.
Congratulations to Jesus Abikarram on your book, “Free Yourself From the IRS,” becoming a No. 1 Amazon bestseller! Kudos to R.C. Thornton for reducing his client’s tax debt of $900,000 down to $25,000! Congrats to Patrick Noone for speaking at the Realtor Association of Fox Valley, and we especially like your slogan, “Want the I-R-S off your A-S-S?” High-five to Tracie Lowe for receiving an amazing testimonial from one of her clients, who posted a picture of Tracie’s Client Care Package materials on
Patrick Noone telling it like it is!
Facebook bragging about the “lovely care package” she received and how much she appreciates how her CPA is always taking care of her. High-five to Myrna Arroyo for retaining a new client for $20,000 who has a 941-payroll tax issue. Congrats to Kristen Cunningham for signing her first tax resolution client! Way to go Beth Gray for receiving a referral from an attorney from her PTIN mailing! Keep sending out those referral letters — direct mail marketing is a marathon, not a sprint! Congrats Guy Finocchiaro for signing a new client for $22,000 to settle an offer in compromise for
Who knew you could learn somuch about tax work from a 1968 Oldsmobile 4-4-2! –Michael Rozbruch
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O U T S ! the daughter and an installment agreement and penalty abatement for the parents. Kudos to Tina Pittman for speaking about strategies on how to mitigate real estate investment capital gains on the “Gary Johnson Podcast.” High five to Joe Aguilar, Karla Navarro, Bruce Kowal, John Haslach, and Yiorgos Makris for mailing out your referral letters! Kudos to Antonio Nava for personalizing and sending out his Tax Resolution Times newsletter. 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 ∙
Tax Resolution Tips From Michael’s Car (Yes, Really)
The ABCs of Adulthood
pg 2 ∙
7 Reasons to Increase Your Fees
pg 3 ∙
Member Spotlight
pg 4 ∙
Save the Date!
pg 5 ∙
Shout Outs!
pg 6 ∙
Charlie Sheen’s Unending Tax Trouble
pg 8 ∙
IRS Terror Tale of the Month Charlie Sheen Is in a Relationship With the IRS … and It’s Complicated
The actor Charlie Sheen is perhaps best known for his womanizing character in the sitcom “Two and a Half Men.” But these days, he’s in a different kind of complicated relationship — a tense, drama-filled back and forth with the IRS. Sheen has been on the agency’s blacklist for years. He owes back taxes for 2015, 2017, and 2018 to the tune of multiple millions, and he just hit another blockade on the road to paying them. In October 2021, the IRS rejected his $3.1 million offer in compromise. Sheen was hoping the IRS would take that money and forgive the rest of his back tax debt (which totals more
than $5.7 million). He even put down a $626,000 payment to sweeten the deal. It was a Hail Mary move after both an installment agreement and lower offer in compromise failed. But the IRS turned him down. The agency claimed he had the means to pay the full amount if he sold his Beverly Hills house and other assets. The verdict was stern, but Sheen is still fighting it. According to Forbes, the actor claims he “didn’t get a fair shake” from the Los Angeles IRS office’s director — so he filed a petition to move his case to another jurisdiction.
director breached his duty of good faith and fair dealing” and “asserts that the IRS further abused its discretion when the area director deprived Sheen of an opportunity to pursue an administrative appeal.” Sheen’s ongoing battle proves that even famous actors and, especially actors with deep pockets, have to pay the IRS!
According to Tax Notes, the petition “argues that the Los Angeles area
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