Why Aren’t You Giving Your Clients Hope?
The Roz Report
SEPTEMBER/OCTOBER 2021
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Turn More Prospects Into Clients With This Psychologist-Approved Technique The Missing Piece of Your Conversion Puzzle
A wise man once said, “You can change your life by changing your behaviors. You know that. But what you may not know is that only three variables drive those behaviors.”Those words came from BJ Fogg, Ph.D., a social scientist and researcher with a Behavior Lab at Stanford University and the author of “Tiny Habits.” BJ understands human behavior better than almost anyone on the planet. I learned about BJ from Roslyn, who read his book and attended his online program. She liked what he taught so much that she signed us up for his two-day behavior model seminar/bootcamp this summer in Healdsburg, California, adjacent to Sonoma, CA. This trip was mostly for work, but we went a couple of days before and took time to bike around wine country, visit a winery, and enjoy some of the many wonderful restaurants in the area. Our daughter and son-in-law joined us on the trip, and that added to the fun. I learned a lot from BJ over those two days, and I was impressed by his Fogg Behavior Model. It looks like this:
missing one or more of those things, the behavior doesn’t happen or becomes a habit. For example, take the idea of donating to the Red Cross. You might be motivated to do it because you’re a good person and have the ability to do it because you have the money. But without the final piece — the prompt — you’re not going to actually do the behavior. It will take a Red Cross commercial, a natural disaster, or a friend’s suggestion to prompt you to click the donate button. When BJ was explaining this model during the bootcamp, I immediately thought about the tax resolution professionals we work with. In order for a prospect with a tax problem to become a client, they have to take action (aka Behavior). They need to respond to a marketing message by calling, emailing, or scheduling an online appointment. One of the hardest things in marketing is figuring out how to make this happen. But Fogg’s model shows you how. Here’s one way to make sure someone with a tax problem has the motivation, the ability, and the prompt. Motivation: Most people with tax problems are highly motivated to resolve getting the IRS off their backs. Those motivations can come from all kinds of places. Maybe they’re contemplating marriage, trying to fix a strained relationship, anticipating a real estate transaction on the horizon, or having a bank account in their name, or maybe they just want to retire in peace.
Roslyn andMichael With BJ Fogg
Ability: In this case, this is the ability to pay to help them fix the problem. It’s not the easiest thing to do, but many people can check the ability box if they have money or they can borrow, have a family member or friend help out, tap a credit line, or get a cash advance from their employer. Prompt: Most people with tax problems also already have a prompt. The IRS takes care of that by sending them a collection notice, or their bank accounts have been levied or their wages have been garnished. People will always move away from pain a lot quicker than they’re attracted to pleasure. The easiest way to get clients is to target your marketing at people who already have all three of these things. The more prone someone is to having a tax problem, the better chance there is that they’ll have the motivation, ability, and prompt in place to solve it. One way
B =MAP
“Behavior (B) happens when Motivation (M), Ability (A), and a Prompt (P) come together at the same moment.” Basically, humans are hardwired only to take action when we have the motivation, ability, and prompt to do so. If we’re
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The Importance of Knowing What ‘Not to Do’ FOOD FOR THOUGHT (BY ROSLYN ROZBRUCH)
As humans, we’re faced with daily decisions from easier ones, like what to wear for the day, to harder ones, like what car you should buy. But as you contemplate your choices in decision- making, know this: It’s as important to know what you don’t want as much as what you do want. Many times, I’ve seen people not realize what they don’t want and pick that as their choice. As an example, I will share a personal story. Around a year ago, Michael and I bought a new home (new to us anyway), and Michael wanted to completely redo the backyard. I knew the pool needed to be replastered even before we put an offer on the house. Once we moved in, I told Michael that since we were going to update the pool, we should add in a jacuzzi, too. We then noticed all sorts of other things that weren’t right, and soon, Michael was on a mission to completely remodel the entire backyard. I’m the one usually in charge of the remodeling, but working full time in our business made gutting the backyard an overwhelming thought, so Michael said he’d oversee it. Finding the right people to do the work was a job in itself, but Michael asked around and brought in experts to give estimates and share their ideas. After interviewing several people, we narrowed it down to two: a recommendation from one of Michael’s friends he trusted, and the company that did a great job on our previous house. Since Michael was in charge, I
let him make the final decision, and he went with his friend’s recommendation.
The contractor started the job, and it went down like this: Michael would go to the office at the crack of dawn every day, and I was at the house when the team of workers would show up. I’d see what was going on, have an anxiety attack because something didn’t look right, go in the backyard, and tell them to stop. It wasn’t the workers’ fault; it was the contractor not paying attention to details of what was to be done. So, for example, when the jacuzzi was being added to the pool, it looked too big, and the step into the pool was too narrow. I might not have known what I wanted the pool to look like, but I knew it needed a wider step. The contractor made it right, but he had to rip out the rebar and move it over. And it kept happening! Michael would go to work, something didn’t look right, I’d go in the backyard and say, “Don’t plant the trees until you paint the fence!”, “Don’t plant the vines until you put up the wire to hold them!”, or “Don’t put tile on the jacuzzi, put the stone on the sides!”, and then I’d call Michael while having an anxiety attack and say, “This isn’t right.” Even though Michael was in charge of the backyard, design isn’t his thing, and I’m obsessed with it, so he never noticed what wasn’t right. And even though I wanted no part of the backyard, and I certainly didn’t like going outside all the time and saying, “Stop,” I could easily see what I didn’t want. I didn’t know how I
Michael happy in his newbackyard
wanted the backyard to look — I don’t know plants or construction — but I knew what wasn’t right. The good news is the contractor kept his word and made everything right with us without adding extra charges. And even though the backyard isn’t finished, it’s 90% complete, and it looks really nice. The point of my story is that while I didn’t know what I wanted for my backyard because I don’t have the experience in remodeling yards, I knew what I didn’t want. And even though knowing what’s not right isn’t the ideal way to make decisions, listening to my inner self and speaking up to say, “That’s not right” led me in the direction of what I did want. So, my thought for you is: remember that the next time you’re faced with a decision to make, and you have so many options to choose from, or you’re not sure what to choose, consider eliminating the wrong choices, the things you don’t want to do in your life,
and I bet that will help you narrow down your choices and get you in the right direction so you make the right decisions for yourself.
It’s as important to know what you don’t want as much as what you do want.
–Roslyn Rozbruch
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PRACTICE CORNER FROM THE
Is the IRS Coming to the Digital Age?
Announced for the first time ever, tax professionals may go to the new Tax Pro Account on IRS.gov to digitally initiate power of attorneys (POAs) and Taxpayer Information Authorizations (TIAs). These digital authorization requests are simpler versions of Forms 2848 and 8821. Once completed and submitted by the tax professional, the authorization requests will appear in the taxpayers’ online account for their review, approval or rejection, and electronic signature. Because the taxpayers’ identities already are verified at the time of login, they simply check a box as their signature and submit the authorization request to the IRS. A key benefit is the completed digital authorization, which, if accurate, will go directly to the Centralized Authorization File (CAF) database and will not require manual processing. Most requests will be immediately recorded and appear on the list of approved authorizations in the taxpayer’s online account and the tax professional’s Tax Pro Account. Some authorizations may take up to 48 hours. Tax professionals may then go to e-Services Transcript Delivery Service to see the taxpayer’s records. This new digital authorization option will be a much faster process. It will allow the IRS to reduce its current CAF inventory and focus on authorization requests received through fax, mail, or the online Forms 2848 and 8821— all of which require IRS personnel to handle. To connect with their tax professionals, taxpayers either login to their online account using their IRS username and password, or they must create
an account after passing a one-time identity verification process. Taxpayers who cannot validate their identities cannot use this option, and their tax professional must use the fax, mail, or online submission process. However, the IRS will be announcing a new process for this application later this year. Tax professionals should use their IRS usernames and passwords to access the Tax Pro Account or create an account after verifying their identities. This initial launch of the Tax Pro Account represents the first release of the tool. Over time, additional functionality will be added for taxpayers and tax professionals that will increase the options for electronic interactions. Currently, the digital authorization process is available only to individual taxpayers, not businesses or other entities.
Tax professionals must be in good standing with the IRS and already have a CAF number prior to making requests through Tax Pro Account. To initiate the authorizations, tax professionals must enter their personal information and their clients’ personal information exactly as it appears on IRS tax records. The feature is available only to those with addresses in the United States. Tax Pro Account is a separate tool from e-Services. To help tax professionals educate their clients about this new process, the IRS has created two e-Posters that practitioners may share: “WhyYou Should Create an IRS Online Account”and“How to Submit Authorizations UsingTax Pro Account and Online Account.” –Michael Rozbruch
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Bret Scholl, CPA Founder’s Mastermind Member Spotlight
Everyone has a different reason for adding tax resolution to their practice. For CPA Bret Scholl, owner of Scholl & Company LLP, having a lifestyle business is his. Bret is focusing part of his practice on tax resolution as a way to be less involved in the day- to-day work so he and his wife, Rose, can spend more time with their three grown children and four grandchildren as well as travel internationally. “We tracked the average hourly rate in our firm, and tax resolution just made sense,” Bret says. “Technology has made a difference, too, as far as being able to get the transcripts and manage the accounts. Tax resolution makes a nice shift for the practice and is one where I can be less involved.” In his 37 years of being a CPA, Bret has followed a career path that most CPAs will find familiar. “My first stop was with one of the Big 8 firms,” he says. “From there, I went to a large regional firm, but I didn’t see myself partnering with them. So, I opened my own firm.” Throughout his career, Bret has handled tax resolution for clients, but not as a main focus of the practice. Bret joined Roz Strategies about four years ago and recently laser-focused on tax resolution. “I love Michael’s approach, both from the practical side and from the business/operational side,” Bret says.“ He covers the entire aspect of being in a professional practice.” Taking what he learned as a Roz Strategies Founder’s Mastermind member, Bret created a new brand name and website and was set to make a substantial investment in a new division that would focus solely on tax resolution. He was ready to
start marketing for profitable tax resolution cases but needed to stop for a moment. “We got so much work that was high-end and complex in the resolution area, but I couldn’t get staffed up. One thing I’m not going to do is take on work we can’t do a great job on and expose the firm to any reputational risk. So, we pushed the pause button.” Now that he has found the right professional staff, Bret is poised to take his thumb off that button and move forward with tax resolution. But he didn’t waste the “pause.” Bret took advantage of the time to engage fully in the Mastermind group to learn the finer points of tax resolution. “Michael has the blueprint that covers the unique aspects of tax resolution cases,” Bret says. “It saves us a lot of money, time, and mistakes because we aren’t trying to reinvent the wheel. Plus, you have outside, objective views of what you’re doing and how you’re doing, so there’s accountability. Honestly, 70% of what Michael is about is running a proper, profitable practice that is actually a business and not just a job you’ve created for yourself.” Bret talks about one recent large- dollar tax problem case he’s proud of resolving. “The client was a high-net- worth individual, upward of $200 million, who owed about $2 million to the IRS.” Bret shares how he used some of the tips he heard on one of Michael’s webinars, which featured a former IRS agent who talked about how to deal with various IRS personalities saying, “He gave us practical tips on how to build professional relationships from a neutral perspective of strength. And
also knowing the agent’s internal pain points.” He adds, “One pain point for an IRS agent is when they start running over their time budget.” Bret’s solution was to “see if we can help them get the case out of their inventory.” “We wound up building a good relationship with the agent and his group manager,” says Bret. “The client ended up writing a check for about $200,000 to the IRS; it should have been in the area of $2 million. So, we were happy about that!” Bret is moving everything to the next generation so he can step back and “do the fun stuff.”While he plans to remain active in the business, he will be able to spend more time pursuing other interests like spending time with friends and family. “We try to keep up with the grandkids. The oldest is only 4, so it’s exhausting, but we love it.” Bret and his wife, Rose, love to travel, especially internationally, and have booked some upcoming trips to Eastern Europe. “It’s nice to have travel opening up again.”
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The Roz StrategiesMastermind Programs: PLATINUM AND FOUNDER’S For those who want more access to Michael, a deeper dive into tax resolution, and to take their practice to the next level, we offer two yearlong Mastermind programs. The PlatinumMastermind is our highest-level group for experienced practitioners already doing at least $100,000 in tax resolution business and want to scale to a mid-six to over seven-figure resolution business and have the most access to Michael. Acceptance into our high- level Platinum Mastermind Group is by application only. The group is limited to just 18 primary members, as we meet in person three times a year in Los Angeles, California. The Founder’s Mastermind is for people who want a mastermind experience but do not yet meet the criteria for our Platinum Mastermind group. The Founder’s Mastermind is a virtual one-year “Zoom-Zilla” style program where Michael can see and interact with everyone, and there are breakout sessions broadcast from our own studio. In addition to the four one-day virtual intensives on technical training, marketing, sales, and business management, there are quarterly Zoom“hot seat” sessions, private calls with Michael, and much more. ENROLLMENT IS NOWOPEN! Platinum and Founder’s Applications are being accepted for 2022! For more information and to find out which Mastermind Program is right for you, contact John Israelian, Sales & Client Care Executive at John@RozStrategies.com or call our offices at 888-670-0303. If you would like more information, including a brochure mailed to you, email us at Info@RozStrategies.com and we’ll rush you an info package! STRATEGIZE * IMPLEMENT * MULTIPLY
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S H O U T High-five to Jon Donenfeld for settling his client’s IRS debt of $62,333 for JUST $100 through an offer in compromise! It’s always great to help someone get their financial freedom back, but it’s especially extra great since Jon’s client is retired! Way to go, Tracie Lowe , who has been securing clients from her LinkedIn posts by using the lead magnets we provided, which she blinged out and made her own. Congratulations on securing a $10K retainer fee from a client. That’s awesome! Keep the momentum going! Congrats to Martin Radensky , who closed his first case and saved his client $48K! Kudos to David Tudor for signing a new client for $10K, who has a 941-payroll tax issue and a potential other $10K for their state payroll tax matter. High-five to Mike Ornelas for keeping his foot on the marketing gas pedal by sending PTIN mailers and lien letters; coordinating radio, pay-per-click, billboard, and SEO advertising; and keeping up on book and email campaigns. That’s what I call employing multiple marketing strategies! Way to go, Joaquin Torres Hernandez , on using what you learned in the Founder’s Mastermind to obtain a client with a $30K tax liability and having the client say, “Finally, I have a plan to solve this and sleep well.” Also a congrats to Joaquin for speaking about IRS audits at the Mexican Consulate in Orlando!
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to find these people is to contact your county recorder’s office and get a list of people who have federal tax liens filed against them. The Fogg Behavior Model can also help you out when you’re in discussion with someone who isn’t quite ready to work with you. If they’re hesitant, you can try to figure out what they’re missing (motivation, ability, or prompt) and help them with it. If their problem is motivation, you can paint a picture of what life will look like if they don’t fix their tax problem. Showing them financing options can fix ability, and reminding them that the IRS will be “knocking on their door” any day can serve as a prompt. Finding the correct missing piece(s) is key, though — if someone doesn’t have the motivation or ability to do something, you can prompt them all day long with no results. Ever since Roslyn and I took that workshop, I’ve been looking at my life through the lens of the Fogg Behavior Model. There are somany places where it applies. For example, I’m very motivated to take my ‘68 Oldsmobile 442 muscle car out for a cruise with the guys. I get prompted all the time from them via text lettingme knowwhen the next cruise is. But the“beast”needs some engine work and isn’t running well right now, so I don’t have the ability until I get this work done. See what I mean? I’m looking forward to sharingmore about B =MAP and how you can put it to use. But that will have to wait! As I write this, Roslyn and I are getting ready to travel to South Carolina for our sixth- annual Tax Resolution Success Summit Virtual Conference. Of course, by the time you read this, the event will be over, and hopefully, I’ve “seen”you there!
–Michael Rozbruch
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O U T S ! Congrats to Antonio Nava for graduating from the Stanford School of Business, SLEI-Ed — Stanford Latino Entrepreneur Initiative. Another congrats to Antonio for launching his seventh business: SUPERIOR Tax Program, a service bureau for tax preparers by Nava Enterprises! High fives to Jerilyn Mallari , Sharon Lewis , and Robert Korpas for personalizing the Tax Resolution Times and for mailing them out! Hooray for Ben Pruett , Andrew Glace , Jean Falb , Carissa Maulini , and Paula Gordon for sending out their referral letters. Congratulations to Jon Neal for landing three new cases with a value of $30,500 in fees! 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 ∙
The Missing Piece of Your Conversion Puzzle
Food for Thought
pg 2 ∙ pg 3 ∙ pg 4 ∙ pg 5 ∙ pg 6 ∙ pg 8 ∙
From the Practice Corner
Member Spotlight
Roz Strategies Mastermind Programs
Shout Outs!
IRS Terror Tale of the Month
IRS Terror Tale of the Month The IRS Eats a Tax-Evading Pizza Chef for Lunch
The term“sinfully delicious” took on new meaning this spring when a federal court in Bridgeport, Connecticut, sentenced pizza mogul/celebrity chef Bruno DiFabio to 30 days in prison for tax evasion. DiFabio is famous for his appearances on the competitive cooking show“Chopped,” but this time, he was the one on the chopping block! The chef conspired with his business partner, Steven Cioffi, and two others to hide millions of dollars of restaurant revenue from the IRS. Because of his shady behavior, the government lost out on over $800,000 in taxes. When the IRS found out, it came after the pair with the determination of a hungry customer devouring a pizza.
In 2018, DiFabio pleaded guilty. A Hearst Connecticut Media report of the trial quoted him saying, “Everything is true. I engaged in negligent behavior, and I’m not proud of it. I did this fully knowing that I was doing something illegal, and I minimized the extent of it. And I allowed it to go on as I became more successful in business and I opened up more restaurants. I did this out of arrogance, and I am very sorry and I do understand the impacts of my behavior.” Unfortunately for the “Lord of the Pies” and his accomplices, an apology wasn’t enough for the IRS. After their sentencing this spring, DiFabio and Cioffi reported to jail for 30-day stints
this summer. They also paid the IRS more than $125,000 in cash and assets to make up for its massive losses. Ultimately, the IRS came out on top no matter how you slice it.
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