Why Aren’t You Giving Your Clients Hope?
The Roz Report
AUTHORIZED MEMBER 2022
As seen on...
The California Franchise Tax Board Said I Owed $91,465.63!
The Problem Your Tax Clients Might Have Too!
I was relaxed and refreshed when I returned to the office after a little Fourth of July vacation a few months ago, but my cheerful mood disappeared the second I opened a letter from the California Franchise Tax Board that was addressed to Roslyn and me. After opening the envelope, the first thing I saw was, “Notice of Tax Return Change: Revised Balance Due.” I scanned the page and it said “Notice of Tax Return Change.” According to the Franchise Tax Board, Roslyn and I owed them an additional $91,465.63 in state income taxes for 2021. I knew immediately the notice was a mistake. I don’t do my own tax return, but my CPA, who’s been doing my tax returns for literally decades, is fantastic. We do tax projections several times a year to ensure there are no surprises. I knew my return had been filed on time, and everything was copacetic. After my immediate shock, I compared the Notice to the return we filed and had an idea of what went wrong, and I also knew I could fix this mess myself. After several hours on the phone with the California taxing authority and being transferred to different people, I finally got through to the right person and got an answer, and my The clients you file for won’t have the expertise to find the problem ... They’ll need you to do that for them.
suspicions were confirmed. The problem stemmed from a SALT (State and Local Tax) “workaround” passed into law by the California legislature late in 2021 that affected 2021 personal income tax returns. The problem was that the 2021 tax forms had not caught up with this new law that generated the automatic balance due notice. As a side note, when the 2017 Tax Cuts and Jobs Act went into effect, it capped the deduction for state and local taxes (SALT) at $10,000. This was a big problem for a lot of people in high property tax states — including me! So, some state legislators came up with what’s called the SALT workaround. To put it very simply, this lets individuals with Subchapter S Corps take a Pass-Through Entity (PTE) deduction to get around the SALT limitation. The state of California personal income tax form had no designated place to record this credit. My accountant used the most logical spot (the withholding line), but it still came up incorrect in the California Franchise Tax Board’s system.
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The Magic of Manifesting FOOD FOR THOUGHT
Have you ever manifested something in your life by a mere thought, small action, or spoken word and not realized it happened until after the fact? There’s a lot of talk about how to manifest something, like doing a vision board, journaling, or saying positive affirmations. Those are all good things to do for yourself in any case. But sometimes, one small action, like purchasing an item or saying something out loud in a subconscious way, can also manifest something wonderful in your life. Let me explain. This past July, Michael and I attended a wedding for the daughter of one of his best friends from back when he lived on 29th Street in Hell’s Kitchen, New York City. The affair was “black tie required.” I love the idea of dressing up, but no one dresses up in Los Angeles, not even at fancy restaurants. I’m mostly a jeans and T-shirt kind of gal, but it just so happened I had a formal dress to wear! And even more unusual was the fact that I had purchased the dress in 2019. Originally, it was to wear at my daughter’s wedding. I bought it after looking at every department and women’s store in Southern California, and not finding anything, I went to a wedding store and purchased this dress, which was custom fitted for me. It’s a beautiful dress, but it wasn’t the “it” dress. After the purchase, I found a dress that was the perfect one, and even though I had nowhere to wear two evening dresses, I bought the second one anyway. I couldn’t return the first one since it was already altered. I put it in the closet. Less than a year later, Michael and I won an Inc. 5000 award for our company, and we were invited to celebrate at their formal
awards dinner. And I wore the dress hanging in the closet that was waiting for a special occasion for me. Then another two years later, it was our friend’s daughter’s wedding. I didn’t think about the coincidence of all this until after the wedding on the way back to our hotel. I mentioned it to Michael and said, “It’s like I manifested two events to wear this dress to!” Then it led to another thought, and I continued, “Just like the time I bought that designer briefcase right before we started our company.” I was shopping one day, saw it on the shelf, and purchased it. I’m not a person who buys things spontaneously, but it was love at first sight, and for whatever reason, I had to have it, like I intuitively knew I’d need it a few months later. Eight years later, I still love and use that briefcase daily. Or … take the neighborhood I live in now. My friend Debbie and I would take weekly walks in this neighborhood, and we’d say how nice it would be to live there. I didn’t live far from the area, but I never imagined we’d buy a house there because I didn’t think we could find one in our budget. When Michael and I ended up purchasing our house in that neighborhood and Debbie and I went for a walk after we moved in, she reminded me, “Remember all the times we said we wish we could live in this neighborhood?” My point is that sometimes when we least expect it, the magic of manifesting something we wish for comes true. You take that first step with an action, thought, or spoken word, then one thing leads to another. Of course, not everything you say creates what you want, but before
Roslyn wearing the dress that manifested an event to be worn at.
something happens, it’s important to acknowledge what you actually “want.” It all starts there. Now that I’ve shared a few of my magical manifestations, can you think of times you’ve done this, too? If not, maybe you should give it a try. It’s something to think about. In the meantime, Michael and I have always talked about owning a house on the beach. We don’t know exactly where or any details. It’s a wish, a dream. But after I realized how
many things I already manifested, I said to Michael, “I guess I should buy an item specifically to put in our future beach house.” –Roslyn Rozbruch
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PRACTICE CORNER FROM THE
Do You Make This Mistake in Your Initial Consultations?
Tax resolution cases, due to the IRS’s workload, can take up to 12 months or longer to resolve. A lot of things can change regarding the taxpayer’s financial situation during this time versus when you first saw the client. Recently, I had a coaching call with one of my Platinum Mastermind Members. He said, “Mike, I have this situation with a client who retained me. When I had my initial consultation, they were a perfect candidate for an offer in compromise (OIC). They had a payroll tax situation, and I told him at our initial
If the client left out information, or that information significantly changed, it affects what they qualify for. They cannot be upset at what you told them months prior because your diagnosis was based on the information they provided at the time. The date and signature on the mini-433A proves what he told you at the time you diagnosed the case. When the client realizes your work and diagnosis were based on information they provided, they won’t ask for a refund. For example, a client comes in for their initial
meeting the range of the settlement he could expect based on the information he represented to me and my historical experience with cases such as his. But now, we’re eight months into the case, and as I’m putting the package together with all the source documents, I realize the client doesn’t qualify for an OIC.” After my member made that realization, he had to have a very uncomfortable conversation with the client. The client got upset and asked for a refund. All this could have been avoided.
consultation and tells you the value of their home is $200,000, and they have a mortgage of $160,000. Eight months pass, and the new value of the house is now $275,000. They still have the same outstanding mortgage of $160,000, but because of the increase in the
equity of their real property, they are no longer a candidate for an OIC. Because you have in writing their representations to you eight months earlier that said the house was only worth $200,000, you can show it was not your error but that the information had changed. The increase in the home’s value is what changed their eligibility for an OIC. You produce the dated and signed mini-433A and review that with the client, which formed the basis of your initial diagnosis. That signed and dated document helps you manage your client’s expectations. It gives them the responsibility of providing you with accurate information to properly diagnose the case and lets them know if the information changes, so will the diagnosis and outcome of the case. Remember when you fill out the mini-433A, always get the client’s signature and have them date it. Doing this one thing will help you manage your client’s expectations and set the tone for a good working relationship.
The way to avoid finding yourself in a similar situation starts with the initial consultation. During that meeting, you fill out what I call a “mini-
433A.” It’s a one-page sheet that gives you all the information you need to know that is requested on the formal IRS Form 433-A to diagnose the case. After you review the information, you give your prescription to solve the problem and quote the fee that goes into the engagement letter. A lot of practitioners do take the client through the mini- 433A, but often, they leave out one important step. You need to get the client to sign and date that mini-433A and explain to them if there is a change in the information that they just represented to you, during the pendency of their case, it will most likely affect the outcome of their case. If an issue comes up months later, and the client is unhappy, you can produce the mini-433A the client dated and signed. This is what the client represented to you at the initial consultation. This is what you used to diagnose the case and quote fees.
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LuSundra Everett, Enrolled Agent Founder’s Mastermind Member Spotlight:
Sometimes, when we start on a life journey, we never know where that road will lead us. For LuSundra Everett, enrolled agent and owner of Everett Tax Solutions, her path into tax resolution began in 2015. Although, at the time, she didn’t even know what tax resolution was, never mind making it her career destination. It all started with her pursuing an item on her bucket list: learning how to prepare taxes. LuSundra grew up in a military family and is both a U.S. veteran and a military wife. She shares that being a military spouse comes with its own set of problems when looking for a job. “When people know you’re a military spouse, the first question they ask is, ‘How long are you going to be here?’” LuSundra explains. “They’re trying to decide whether or not they want to hire you knowing in a year or two they’re possibly going to have to replace you.” She decided she wanted to figure out what she could do on her own. Learning how to prepare taxes was on her bucket list, but her challenge was that whenever she moved, she was too late to enroll in that year’s tax prep classes. Finally, in 2015, LuSundra experienced what she calls a divine intervention during a Girl Scout meeting. “One of the other moms was saying, ‘Hey, my parents own a tax business, and they’re starting a class.’ I was like, ‘Perfect. Sign me up.’” From that moment on, one thing led to another. LuSundra began working for a tax prep franchise, and her boss wanted her to commit to the following year, saying, “When you take your test next year, you can do this.” LuSundra asked her boss why would she have to take a test the following year if she just took one? Her
boss told her she could avoid taking the annual tax preparers test if she became an enrolled agent, and he offered to pay for the EA review course and exams if LuSundra would work for him for five years. That’s when a lightbulb went on. “I’m a military spouse. I can’t commit for five minutes much less five years,” LuSundra says, “but I thought, if you’re willing to take five years of my life, there has got to be something to this enrolled agent thing, even though I have absolutely no clue what it is.” In January 2017, LuSundra became an EA. She was thrilled with her accomplishment but didn’t know about tax resolution. All that changed in August 2020 when she saw Michael online and attended the Tax Resolution Success Summit. “I wasn’t looking for tax resolution. What I was looking for is someone in the tax industry who could help me with marketing.” She says, “But I believe that when you are walking in your purpose, the people you need will show up when you need them.” One of the first things she learned was to price her services appropriately. “As soon as that first Summit was over, I had my first call for tax resolution. The client wanted an offer in compromise,” LuSundra recalls. “I told her, ‘Based on what you’re telling me, you’re not going to qualify for an offer in compromise.’ She replied, ‘Well, will you try?’ I replied, ‘It’s going to cost you $5,000,’ and she said, ‘Great. How do I pay you?’” As it turns out, LuSundra was right, but the client ended up with an installment agreement and was happy with the outcome. “Michael helped me see the value in what we have to offer,” LuSundra says. “That was an eye-opener for me.”
LuSundra says Michael helped her understand the power of her EA credential and encouraged her to make the shift from tax prep to tax resolution. “All I knew was preparing taxes. I did not know there was such a thing as tax resolution,” she says. But she took Michael’s advice and began focusing on tax resolution and separated her tax resolution practice from her tax prep practice and recently formed ETS Tax Relief. For now, LuSundra, who has moved over 30 times, and her husband Darl Jr., who recently retired from the military, are settled now in Virginia. Their son Darl III (19) finished his first year in college, and their daughter Donavyn (14) is busy on swim team. It’s been an interesting journey for LuSundra who has worked in many other industries and even has a degree in nursing. She shares. “I wondered if I was ever going to find my thing, but now that I’m in tax resolution, I can definitively say that everything I’ve gone through has uniquely prepared me to help a lot of people. All of that background has been very valuable to me.”
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The Roz Strategies Mastermind Programs: Platinum and Founder’s Enrollment Is Now Open! Platinum and Founder’s Applications Are Being Accepted for 2022–2023! For those who want more access to Michael, a deeper dive into tax resolution, and the knowledge on how to take their practice to the next level, we offer two yearlong Mastermind programs.
The Platinum Mastermind is our highest-level group for experienced practitioners who are already doing at least $100,000 in tax resolution business and want to scale their resolution business and have the most access to Michael. Acceptance into our high-level Platinum Mastermind Group is by application only.
The Founder’s Mastermind is 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 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. Special Bonus: 2-Day Disney Magical Marketing Experience in Orlando, FL June 8 & 9, 2023! Mastermind Members ONLY! 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!
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SHOUT Congratulations to Greg McCauley for retaining 2–3 clients a week through his marketing efforts and for recently selling a $60,000 case! That’s awesome and what we call Supercharging Your Profits®! High-five to Sharon Lewis for abating $23,000 in taxes for her client and for also receiving a refund of $4,000 for the same client, for a total tax adjustment of $27,740. Kudos to Patrick Noone for having great success with his local radio advertising and signing up five clients from those ads in one day! Way to go, Tracie Lowe , for saving your client $12,000 in a one-minute phone conversation with the IRS. Congratulations to Jesus
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I had to write up and send a nine-page fax to the California Franchise Tax Board to get the error resolved. In the end, as I already knew, I didn’t owe anything. However, it was a huge distraction that sucked up several hours of my time. If this mix-up happened to me, it’s probably happening to thousands if not millions of taxpayers across the country right now, or it’s going to appear as a problem soon. Imagine how your clients would feel if they got the letter I did in the mail. I wasn’t worried and actually felt confident and welcomed resolving this issue, since I personally resolved over 2,000 cases on my own when I owned my tax resolution practice. The clients you file for won’t have the expertise to find the problem, talk to six different people until they get to the right one, and write up a nine-page fax with supporting documentation proving they’re “innocent.” They’ll need you to do that for them — so get ready to step up and help. In fact, I’d recommend doing more than that. You can actually get ahead of this problem and increase your tax resolution revenue with three easy steps. 1. Review your client list and look for all of the Subchapter S Corps you filed for 2021. 2. Identify the Subchapter S Corps where you also took the Pass- Through Entity (PTE) reduction. 3. Contact those clients and see if they’ve gotten notices like mine from their respective states. If they have, offer to fix the problem for a fee!
Abikarram on being elected Vice President for the Florida Society of Enrolled Agents (FSEA). Congrats to Ben Butterfield for signing 3–4 new clients a month by implementing marketing strategies. Keep up the good work!
Jesus Abikarram being sworn in as Vice President of FSEA
Hats off to Melinda Tolbert for an inspiring writeup of your personal and business journey in the Voyage ATL . Way to go, LuSundra Everett , for officially separating your tax resolution business from your tax prep business and creating EST Tax Relief. Kudos to William Harmon for signing three clients in one week. Congratulations to Michele Harris, Hassan Muhammad , and DeAnna Jacobs for signing their first clients.
LuSundra Everett and Yvette Best attending FSEA Conference
If you do this, you’ll become a hero to your clients and bring in thousands of
dollars of tax resolution business. It’s win-win for everybody except the IRS — just the way we like it.
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OUTS ! It’s great to see so many Roz Strategies Founder’s Members meeting up Peter Marchiano and Melinda Tolbert DC Tax Conference
with each other at other industry events all over the country. Thanks for sharing your pictures! LuSundra Everett and Yvette Best at the Florida Society of Enrolled Agents Conference in Orlando, and Melinda Tolbert and Peter Marchiano at a Washington, D.C., tax conference.
Kudos to William Harmon, David Cash, John Tornese, Johanya Espejo, Mauro Amador, Pietro Canestrelli, and Bernall Ward for mailing out your referral letters. High-five to Richard Ferretti for sending out your Tax Resolution Times newsletters. 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 Big Problem Your Clients Might Have Right Now
The Magic of Manifesting
pg 2 ∙
Do You Make This Mistake in Your Initial Consultations?
pg 3 ∙
pg 4 ∙
Enrollment Now Open for Mastermind Programs!
pg 5 ∙
pg 6 ∙
Blac Chyna Airs Her IRS Dirty Laundry
pg 8 ∙
IRS Terror Tale of the Month Blac Chyna Airs Her IRS Dirty Laundry
Blac Chyna, formerly married to Rob Kardashian (Kim’s younger brother), is in trouble with the IRS — and it will take more than a song and dance to get her out of it. This spring, the Nicki Minaj music video stunt double, former exotic dancer, and reality star appeared in court as part of a lawsuit against the Kardashian family. Chyna hoped to get financial compensation for the cancellation of the defunct reality
TV show“Rob & Chyna.”She asked for $100 million, claiming defamation and contract interference. Instead of paying up, the family’s lawyer trapped her into airing her own IRS dirty laundry on the witness stand. According to TMZ, Chyna admitted during testimony that she hasn’t paid her taxes in years and doesn’t even have a bank account. Yikes! More specifically, the celebrity hasn’t filed personal taxes since 2015, or filed for her businesses (Lashed LLC, 88 Fin, and Blac Chyna Inc.) since either 2018 or 2019. The IRS won’t take that news well — especially because Chyna reportedly made about $2 million from 2018–2020 through a combination of celebrity appearances and OnlyFans posts. In her bid to secure money from the Kardashians, Blac Chyna may have inadvertently painted an IRS target on her own back. Stayed tuned to the ongoing saga, as I’m sure the IRS will bring this star back to reality.
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