Roz Marketing's online newsletter for November and December 2018
The Roz Report ®
NOVEMBER/DECEMBER 2018
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A Moral Obligation Why Are Artists and Tax Pros Afraid to Sell Themselves?
Earlier this fall, Roslyn and I attended a smooth jazz concert with a few of our friends. Roslyn is a big jazz fan, and I’m starting to get there, too. The show we caught, Dave Koz & Friends’ Summer Horns Tour, was part of an outdoor concert series, and the artists were incredible. Dave Koz was playing with other big talent, like Richard Elliot, Gerald Albright, and Rick Braun. It was fabulous — two hours of great jazz music that spanned from Duke Ellington to Kool & The Gang. We all had a good time, but after intermission something strange happened. Before they started playing again, one of the musicians said, “By the way, we have CDs for sale for $10.” It wasn’t the fact that they were selling merchandise that was strange. I was taken aback by how apologetic he sounded — almost like he felt bad for even mentioning the fact that they were selling CDs at a concert! There were about 300 people in attendance who were there solely because they liked smooth jazz and these artists in particular. I’m sure a good number of them would have been happy to have a CD, but the guy didn’t even mention where the CDs could be found. I wanted to jump on stage and help pitch the CDs for them! Our friend bought one of the CDs and she listened to it all weekend. She was so happy to have it, and I can’t help but wonder how many other people in the audience missed out on getting a CD they would have loved because that guy didn’t try to pitch himself. This is the kind of mindset I see many tax practitioners struggle with. They hesitate to market their services or grow their business. Here’s the thing: If you believe in the work you do, like those jazz guys believe in their music, then you should never be embarrassed to pitch yourself. In fact, if you believe in the work you’re doing, then you have a moral obligation to offer your services to as many people as possible. Said another way, you are committing a disservice to your prospects by not helping them to take action and retain you. Whether you are conducting your initial consultation or working to convert a hot lead into a prospect, remember that your job isn’t to sell something — your job is to help them
Michael and Roslyn with Barbara and Russ Beck at Dave Koz & Friends’ Summer Horns Tour
take action. If you let a client walk out of your office without retaining you, then their situation will only get more dire. After the jazz concert, I’m sure a lot of people in the audience spent the next day wishing they had a CD to enjoy that music again, but they had missed out. Likewise, people have a lot more to regret when they don’t hire a tax resolution practitioner soon enough. Clients aren’t paying for your time; they’re paying for the value you deliver to them and your knowledge, and, above all else, they are paying for peace of mind. They’re overwhelmed and in trouble and they don’t know how to save themselves. As a tax practitioner, you know what to do, and you will be doing a disservice to your fellow man if you aren’t taking steps to help as many people as possible get out of trouble with the IRS. Because when someone has an IRS problem, not even “If you believe in the work you’re doing, then you have a moral obligation to offer your services to as many people as possible.”
the smooth sound of Dave Koz’s saxophone is enough to ease their stress. –Michael Rozbruch
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FOOD FOR THOUGHT: BY ROSLYN ROZBRUCH
Thirty-three years ago, when I married Michael, I told him that when I have a bad dream I talk in my sleep, and if he ever hears me do that, he should give me a little nudge to wake me up. I don’t have nightmares that often, but when I do, he never wakes me, no matter how many times I assure him it was okay to do so. To give him a little credit, he’s probably afraid I’ll be mad at him if he does. Last night, for the first time, Michael nudged me out of a bad dream. The reason I am sharing this is because I want you to know anything is possible — sometimes it just takes time. I think one of the reasons Michael and I work so well together as a couple in business is because we like to do different things within our business. I always joke and say, “I like to come up with ideas for Michael to implement.” But obviously, it’s more complicated than that. In the mastermind group we belong to, there’s a member by the name of Dan Sullivan who believes you should discover what your unique ability is and focus on developing it. Simply put, Sullivan says that people are happiest when they are spending more time involved in doing what they love to do. To be clearer, Michael is a CPA and an expert in the tax resolution industry; he likes teaching others to be successful in that field. That’s his unique ability. To break it down, he is great at teaching others from the stage, on webinars, and in our mastermind group because he spends a lot of time preparing everything he teaches. He can spend a lot of time preparing because he likes what he does. When you spend time doing what you like, you don’t notice the time go by; instead, it’s the thing on your mind that you want to do. I like to create some of the programs we have. I am not a CPA or an accountant, but I have a journalism background. I like taking Michael’s knowledge and helping create the Tax Resolution Domination System and Toolkit. I was also very involved with creating the “8 Weeks to Supercharge Your Profits” with Michael. I had a visual of what it would look like and worked with Michael on the content. I also like putting on a good party. Before Michael and I were working full time in Roz Strategies, I hosted every holiday at our home. I hosted dinner parties, holiday parties, and birthday parties, and on and on. I always did something to make each party a little different and more special than what others were doing. I love entertaining
others. I’ve taken that experience into putting on our annual Tax Resolution Success Summit and Mastermind meetings. Creating our products and programs and hosting events is my unique ability and where I like to spend most of my time.
Now, here is my question to you: Are you aware of what you like to do most in your life and business? Have you ever given thought to your particular strengths and what you enjoy doing the most? Any time you can spend doing what you like is going to move you forward in your career and make you happier in life. It’s important to know how all the different areas of your business work before you delegate something to someone, but anytime you can either hire or outsource someone to take over a task you don’t like to do, that means you get to spend more time in your unique ability doing what you like. Your first step is to focus on what your unique ability is. It’s worth giving thought to. And, if you were wondering what my bad dream was about, it was figuring out what to write for this month’s Food for Thought column. I guess that thought followed Any time you can spend doing what you like is going to move you forward in your career and make you happier in life.
me into the night and haunted my dreams, but at least I came up with an idea of what to write, and after 33 years of me asking, Michael finally felt it was okay to nudge me from a bad dream.
–Roslyn Rozbruch
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PRACTICE CORNER FROM THE Marketing: New Emerging Industries for Tax Resolution
BY MICHAEL ROZBRUCH
When it comes to marketing, I always say, “One is a lonely number, and you need more than one marketing strategy to attract prospects.” Let me take that one step further and say that you also need different groups of people or industries to market to. And I have two hot tips for industries you should be focusing your marketing on, because these two industries are going to produce a lot of clients with tax problems who are going to need IRS representation. Those two new industries are the cryptocurrency and cannabis industries. Let’s focus on cryptocurrency. A few months ago, the IRS was successful in suing Coin Base for their customer list. Coin Base had to turn over 15,000 names of U.S. taxpayers who used their platform to buy cryptocurrencies. And as we all know, cryptocurrency was a dollar about eight years ago, and it’s trading now at about $6,000. But during 2017 and early 2018, it was up around $19,000. A lot of people “cashed in” and haven’t reported those transactions on their income tax returns. And I got news for you: There are about 15 million more taxpayers behind those 15,000 who had cryptocurrency transactions, and the IRS is going to get their hands on their names and contact information and go after them.
The next market is cannabis. Most of the people in the cannabis industry, especially dispensaries, cannot deduct anything other than the cost of goods sold on their federal income tax returns. It’s known as Section 280E. This means that they have large “phantom” tax liabilities. Thirty states have now legalized marijuana. The last state to legalize pot was a big surprise to me, and that one is Oklahoma. So, if Oklahoma can legalize marijuana, my prediction is that all of the other states in the nation will legalize marijuana within the next 12–18 months. These businesses need your help right now. They need help in structuring their operations, filing returns, and audit representation. Most of these entities can’t even open or maintain bank accounts. They will also need help with their resultant IRS collection issues. Marketing to these industries is a huge opportunity. Here’s to your success!
–Michael Rozbruch
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Deryck Ferrier, Enrolled Agent and Tax Fellow Member Spotlight
Deryck Ferrier says he “stumbled into” tax resolution work sometime in 1996 when he helped a young doctor resolve an issue with the IRS. “It was a family friend whose daughter had just graduated from medical school,” he says. “She had issues like most budding physicians. It turned out really nice, and I thought, ‘Gee, I like this. I could be an advocate for people who are being taken advantage of.’ So, I started pursuing the knowledge and the specialized area of tax resolution, which wasn’t easy at that time.” In the late ’90s, Deryck was a solo practitioner, and he came up against two barriers to learning: Many of the other practitioners he met wanted to keep whatever knowledge they had to themselves, and he was hesitant to ask for help. Around that time, he met Michael at an ASTPS conference. Deryck says Michael owned a large and profitable tax resolution practice but told Deryck to call him if he ever needed help. Deryck took Michael up on the invitation and called him. “At that time, Michael had a huge business going. He took my call personally and gave me some advice, and that was an act of kindness I remember fondly,” Deryck recalls. Fast-forward to June 2014, when Michael launched his Tax and Business Solutions Academy. Deryck, who is now co-owner of Accounting & Business Consultants in Birmingham, Alabama, was one of the first in line to buy Michael’s Tax Resolution System and Toolkit and enroll in the Insider’s Circle membership. “That’s why I’m on the Roz team today, because of Michael’s kindness and genuineness,” Deryck says. As a self-professed lifelong learner, Deryck is right where he wants to be at Roz Strategies, learning new ways to serve his clients and build a profitable practice. “The lessons I find that have been really valuable are listening to Michael talk about client care and communication, because that’s an area that I wasn’t very strong in,” Deryck says. “I love the clients, and I’m sincere and want to do the right thing; I just never communicated it very well.”
Deryck crossing a bridge in Ghana
Deryck also likes using the fee schedule, which he printed out and put on his desk. He shares that he recently used it to his advantage when a client came to him with an IRS letter saying he owed $20,000. Deryck was able to file his client’s back returns and get him into a Properly Structured Installment Plan “pretty much with one phone call — so that’s the power of the training I’ve gotten,” he says. “Having the courage to ask and increase my fees, which I’ve been hesitant about doing. What surprises me is when I ask for it, I get it.” Deryck says that when he listens to Michael’s advice, it works. Deryck is originally from “way down south,” having grown up in Guyana, South America. He immigrated to the United States, went to college in New York, and trained as an engineer and a Realtor before becoming an Enrolled Agent and a Tax Fellow. Deryck found that he was passionate about helping people with tax problems, so he left his corporate job, sold his snow tires, and moved from Brooklyn, New York, to Alabama. Deryck and his wife of 30-plus years enjoy traveling, both to visit their five children and 12 grandchildren and to see the world. Recent trips include Vietnam, Hong Kong, and Cambodia; Egypt; South Africa; and Brazil.
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AUSTIN 2018 We want to give a shout out to all of our members who took advantage of their member discount and came to our third SOLD-OUT Annual Success Summit! It is always great to meet you in person and hear about your successes. Besides Michael teaching from the stage for 2 1/2 days, we had an incredible keynote speaker, Eric Edmeades, who was not only inspiring, but who also joined us at the cocktail reception to mingle with everyone. Roslyn worked hard to make sure the event went off without a hitch and added her special “touches,” including handing out “I’m A Strategizer”T-shirts to all attendees. (We have a few left, so if you’re an Insider’s
Mastermind Members receiving awards for excellence in the Tax Resolution industry
Circle member and would like one, just email Becky or Sue, let them know your size, and they’ll mail one to you.) Roslyn made sure everyone was well-fed during breaks, the hosted cocktail hour, and Insider’s Circle members-only lunch. Becky and Sue worked hard setting up and registering all our guests, and Hugo taught a session on social media marketing before giving everyone a free copy of his book, “The Client Acquisition Blueprint.” For those of you who couldn’t attend this year’s event, we hope to see you next year!
Jesus Abikarram, Francisco Andino, Alfredo Mercado, Zeb Elkinton, and Paul Witzke at the Cocktail Reception Party
Speaker (and friends) Dave Dee and wife Karen with Roslyn and Michael
Becky, Roslyn, and Sue setting up for the conference
Lance Stodghill and Marc Enzi at the Cocktail Reception Party
Patrick Chemngorem and George Ilankunda
Norma and Randell Martin at the Cocktail Reception Party
Our Keynote Speaker, Eric Edmeades
Jose Ramirez and Ron Friedman talking to Dave Dee
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S H O U T
Michael hanging out with the gang at the Pitbull Conference.
Barbara Beck, president of Barbara’s Best Impressions handing out T-Shirts to all attendees at the Success Summit.
Becky, manager of client happiness, “working hard” with Jamie and Jose at the Pitbull Conference in Fort Lauderdale.
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O U T S !
Congratulations to Thomas Gearhart for being one of the authors of “The Great Tax Escape,” which was recently published! Be sure to give a complimentary copy to everyone who walks in your office. Kudos to Scott Rulon , who has been marketing for tax resolution clients for a month and already has 5 new clients! Way to go to John Turner , who had a meeting with a prospect with payroll tax problems. Now that prospect is a client and has paid John a $25,000 fee! Double Congrats to Peter Marchiano , who was retained by a new tax resolution client, and upon their seeing your Audit Protection Network plaque out on display, they purchased the Audit Protection Plan for themselves and their business. Kudos to Robert Staats and Bill Bourbonnais for mailing out your letters and brochures! Once again, a member has shared a story about how our flashlight keychain helped them out. In this case, Antonio Nava shared how their employee was able to flag someone down when he got a flat tire on his drive home in a remote area. The Roz team is always happy to help in any way we can. Do you have a story or picture to share with us on something you’ve implemented, a client you’ve helped with a tax problem, or anything else? If you do, email it to info@RozStrategies.com so we can give a Shout Out to you!
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11271 Ventura Blvd #612 Studio City, CA 91604 Inside This Issue pg 1 ∙ A Moral Obligation pg 2 ∙ As I See It pg 3 ∙
From the Practice Corner pg 4 ∙ Mastermind Member Spotlight pg 5 ∙ Tax Resolution Success Summit, Austin 2018 pg 6 ∙ Shout Outs! pg 8 ∙ IRS Terror Tale of the Month
IRS Terror Tale of the Month Political Powerhouse Tries to Leave IRS in the Dark
Unless you have been living under a rock, you’ve probably heard of Paul Manafort and the millions he failed to pay the IRS in taxes. Due to the brief time Manafort spent as President Donald Trump’s campaign manager during the 2016 election, Manafort’s tax fraud and other crimes were often spun based on political leanings. However, the fact remains that the millions Manafort owed and the lengths to which he went to defraud the IRS are astonishing. Here are a few of the highlights that make this story so extraordinary.
unreported income came from Ukraine, where Manafort worked as a political consultant.
In an attempt to hide this income and pay less than he owed to the IRS, Manafort would falsely classify income as a loan and list false business expenses, like claiming to have paid 132,000 euros to a yacht company or $45,000 for cosmetic dentistry. Additionally, when filing his taxes in 2012, Manafort didn’t disclose that he had a foreign bank account. At this time, Manafort in fact had 30 foreign bank accounts around the world in Cyprus, St. Vincent and the Grenadines, and the United Kingdom. When all was said and done, Manafort was hit with 18 different charges and faced 80 years in prison. In August 2018, a jury found Manafort guilty of eight of those charges, including all five counts of tax fraud. Manafort has since pleaded guilty to other charges, and the case is still ongoing.
Manafort was first arrested in October 2017 on a series of charges that included engaging in a conspiracy to launder money and failing to file reports of foreign bank and financial accounts. Prosecutors claimed Manafort laundered more than $18 million and that he failed to report at least $16 million in taxable income between 2010 and 2014. A great deal of his
Paul Manafort may have enjoyed a long, powerful political career, but when the IRS comes knocking, they always get what they’re owed.
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