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The Roz Report
MARCH/APRIL 2018
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Not the Judge or Jury The Part We Play in Second Chances
“What we all need is a little more empathy for each other.”
We are living in times where controversy swirls all around us. Every day, there’s another breaking story that spreads like wildfire on the news and on
They might have been let go from a job or a longtime career, had a business go south, suffered a serious illness. They may be dealing with the
social media. After just glancing at the surface, sometimes without even looking past the headline, people decide they know everything about a situation and are ready to cast judgment on a stranger. What we all need is a little more empathy for each other. This concept also applies to clients who have major tax problems. One of the things that attracted clients to hire me was my ability to find common ground with them. I never judged or looked down on them. I made sure each new prospect knew I saw them as someone who wanted help and to have their finances back on track, and not for the mistakes they made in the past. I’ve had my own trials and tribulations in life and got a second chance —why shouldn’t I offer that same help to someone else who could use a second chance? Some CPAs, EAs, and attorneys find themselves judging their own clients. Luckily, I’ve found that most people I know who specialize in IRS representation are drawn to this industry because of the intrinsic value they get in helping people, which is awesome. But if you are new to the industry, or one of those in the tax resolution industry who have found themselves feeling less empathic lately, you might want to be more aware of being compassionate toward your client. People who owe money to the IRS are already struggling with the shame and guilt of owing money and feeling like everyone is thinking, “If someone owes money to the IRS, they must be bad a bad person.” It’s important to remember that 99.9 percent of people who haven’t filed in a few years or who owe back taxes are not the sort you would read about in one of our IRS Terror Tale stories. They aren’t bad people who tried to pull one over on Uncle Sam. The reality is that many of them have suffered from some unfortunate life events that knocked them off their feet.
wreckage of alcoholism or substance abuse or the death of a loved one. Some might have needed to raid their 401(k) just to make ends meet, fully intending to put the money back before early withdrawal penalties hit after 60 days. However, their situation didn’t get any better within the two-month time frame, and in addition to owing early withdrawal penalties, the extra income knocked them into a higher tax bracket. After this, their life starts to spiral out of control. The point is this: Everyone has a story; everyone has a secret; and everyone has struggled with their own obstacles. If someone comes to us for help, we shouldn’t add to their struggles by deciding at a glance what kind of person they are. When people owe money to the IRS, there’s a lot of shame and stigma around it. I teach a lot about how to market to clients and how to close the client, but the fact of the matter is, being compassionate and empathetic toward a client is probably the best thing you can do to build trust and rapport. Prospects hire you , not your firm. People do business with people, not companies. People do business with you because they feel like they know you, like you, and trust you. I’ve shared many times that I left the corporate world and started my own tax resolution business because I hated working in the corporate world, and then my company grew so large I found myself back in the corporate world, involved with the operations and politics of the business, which is my least favorite part. The last months there, I ended up how I started, working with cases one-on-
one with clients, because helping someone have a second chance is the most rewarding part of tax resolution. –Michael Rozbruch
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FOOD FOR THOUGHT: BY ROSLYN ROZBRUCH THE ONE THING “ When I want to learn something new or
Years ago, everyone used to talk about multitasking. In job interviews across the country, the question always asked was, “Are you a multitasker?” I was never good at multitasking. I even have my own saying: “I’m a one-task-at-a-time type of person.” I get what I need done in a timely manner, but I focus on one
never stopped taking. So instead of setting a goal of working out four times a week, I said to myself, “I can do this one thing. I can take this one class.” I set the bar lower, but it was a goal that was very doable. A year later, I am still taking both classes, and, several months ago, I added one more thing to that routine. I
achieve a specific goal, I set small goals and go at them one at a time.
thing at a time. I can’t even write checks in QuickBooks and talk on the phone at the same time.
told Michael that I wanted us to go for a 20- to 30-minute walk after work once a week. He balked at first, saying he already was working out three times a week. But I convinced him how easy and doable it was, and it was better than sitting and watching TV. What about you? What is something you want to achieve this year? Is it to learn something new, eat healthier, or take up a new hobby? Whatever it
My thinking is much more in vogue
nowadays, as research studies show switching from one task to another or doing several at once actually reduces your productivity. This brings me to my next thought — The One Thing . When I want to learn something new or achieve a specific goal, I set small goals and go at them one at a time.
For example, I used to have an exercise regimen in place before I started working with Michael four years ago. But once I went from working part time to full time, my workout fell by the wayside — from four times a week down to once or twice a week. Last year, I got bursitis in my hip, probably from sitting too much and a lack of exercise. After a couple of months of intensive physical therapy, my hip felt almost as good as new. I knew I needed to add exercise back to keep my joints pain-free, and I moved it to the top of my priority list. To guarantee my success, I knew not to set the bar so high that I wouldn’t reach my goals. I decided to take a Pilates class once a week until it became a habit. I was already taking a strength training class once a week that I
is, go at it as One Thing. Instead of making drastic changes, do one thing differently and consistently. Once it becomes
automatic, do the next thing. Not only is this an easier way to have success in your life, you can feel good about your accomplishments sooner rather than later. Here’s to your success this year — one thing at a time!
–Roslyn Rozbruch
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PRACTICE CORNER FROM THE
BY MICHAEL ROZBRUCH
How to Destroy Client Objections Over Prices and Fees — I Don’t Like to ‘Handle’ Objections; I Like to Obliterate Them! It’s important to understand that people can always afford you; it’s just a matter of priorities. Sometimes our prospects don’t comprehend the seriousness of their problems, and we have a moral obligation to help them prioritize solving the problem. Sometimes it takes a frank conversation. FollowThis Simple Formula: ACOC (Acknowledge, Compare, Options, Close) When a prospective client brings up objections such as “I can’t afford that,”“That’s way too expensive,” or “If I had that kind of money, I would just pay the IRS,” the first thing you want to do is acknowledge the prospect by saying, “I understand.” Then, proceed with, “Listen, I get it, this is a serious investment, but what I’ve proposed here is a solution to a serious problem that will change your life.” Compare your lifesaving offer to a life-and-death situation: So, if the price tag is your primary concern… let’s be clear with one another. A lot of people who say they can’t afford it or who can’t find the money are not being truthful. They’re well-intentioned, but being less than truthful nonetheless. So, if you’re saying you would hire me if only you could afford it, you need to listen very closely. We can get started today for $x,xxx (30 percent of total case value), which of course is nothing to sneeze at. However, let’s say if instead of retaining me for $x,xxx, you found out you needed to have a lifesaving medical procedure tomorrow, and the price of that operation was $x,xxx (the same amount of the retainer you are requesting). Would you say, “Oh, I can’t afford that; I’ll just suffer and let it get worse until I’m too far gone?” Of course not. Now, discuss the potential options your prospect must decide on:
So, let’s get rid of the myth of whether or not you can or can’t afford it. Here’s the real question: Are you willing to do what it takes to make this investment or not? As you sit here today, you have three options: The first option is to do nothing. Doing nothing just doesn’t leave you with the problem, it makes the problemworse the longer you do nothing. So that’s not it. The second option is you can do something else with the money … but why? You know and I know that what I’ve laid out in front of you as our plan of resolution is the thing to do to protect you and your family and to permanently resolve this matter once and for all. And that’s option number three — just do the right thing. Here’s where you “ close .” Yes, the money may be tight. Yes, this may be a stretch. Yes, you’re going to have to go out of your comfort zone a bit, but have you considered the alternative? That’s why you need to stop being less than truthful to me, and more importantly, to yourself. Just do what needs to be done right now so we can quit messing around and get down to business. I can get on the phone with IRS today and get you protected from their aggressive collection tactics.” These simple steps will ensure that your close rate will soar when dealing with objections to prices and fees.
–Michael Rozbruch
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RON FRIEDMAN, CPA SPOTLIGHT: MEMBER
Ron Friedman, CPA, says he entered the tax resolution industry “by accident.” As it turns out, this accident was the textbook definition of serendipity, the occurrence and development of events by chance in a happy or beneficial way. Ron explains, “I was referred to a tax resolution client by a client of mine, and I was able to get a $65,000 tax bill reduced to $1,500.” Beginner’s luck joined serendipity, as Ron is quick to say that he didn’t have the specific education and tools he needed to be certain he was doing what was needed for his client. “I honestly didn’t understand what I was doing,” he says, “so I decided I should do some continuing education.” Ron registered for a tax course, and serendipity struck again. Michael Rozbruch was a guest speaker. “[There was] just something about Mike that reeled me in,” Ron recalls. “I was raised on Long Island, my undergrad was done at Queens College, City University of New York, and my MBA is from St. John’s University (also in Queens). I knew right off the bat that Mike was from New York … that we were kindred spirits.” Ron bought Michael Rozbruch’s Tax Resolution System & Toolkit four years ago, and he has come a long way since that first “accidental” case, which, by the way, he handled pro bono. “It was an introduction into how to do the work, and I’m still learning,” he says. “There’s so much to know.” Prior to getting into tax resolution, Ron says he was a CPA in public accounting before striking out on his own. Ron recognized that the traditional accounting firm service lines and methods of delivery were becoming dated and was searching for a niche he could specialize in. Tax resolution presented new challenges and opportunities. Ron’s No. 1 challenge? “The fear of making a mistake,” he says. Michael helped Ron, who was new to tax resolution, overcome his fear and went even further, encouraging Ron to market his expertise.
Ron working out.
Focusing on implementing more marketing on a consistent basis is one of Ron’s top goals for 2018. He has hired a marketing specialist, and he is using videos on his website to promote his practice. “One [video] stars a client who I was able to do some tax resolution work for,” Ron explains. “This taxpayer was suffering from life-threatening ailments, and the stress was eating at him. He was a perfect candidate for one of the videos.” Ron is also actively promoting the Audit Protection Plan to his individual and corporate tax preparation clients. “I want to push my take rate to much higher,” Ron says, acknowledging that adding the Audit Protection Plan, which includes ID theft protection to every return, is beneficial for his clients. When Ron isn’t assisting his clients with their tax problems, he is most often in the gym, weight training and running. In addition, and depending on the season, he’s busy playing softball and basketball or watching sports — all New York teams, of course!
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SAVE THE DATE ...
Thursday, August 23 Friday, August 24 Saturday, August 25
DATES:
WHERE: Austin, Texas!
Join over 200 of your peers, plus incredible guest speakers and industry vendors, and receive 2 1/2 days of hardcore implementation and demonstration on how to get more tax resolution prospects to retain you. By the time you leave the conference on Saturday you’ll have an actionable marketing plan that fits your individual circumstances, plus you’ll know how to “close” prospects, so you can start reaping results Monday morning!
MORE INFO TO FOLLOW… SUPERCHARGE YOUR PROFITS!
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S H O U T
High-five to Jeff Johnston for sharing his success rate with his APP mailing. Most of the mailings contained the Correspondence Protection Plan and the Audit Protection Plan. Jeff has been pricing IRS correspondence from $99 to $199 per return, and audit protection from $99 to $399, depending on the complexity of the return. A typical $997 tax return has a $99 CPP and a $199 APP fees attached to it as optional fees. Jeff said, “So far, the APP results are HUGE! As in Bernie Sanders’ H-U-G-E!” A BIG Congratulations to Jeffrey Schneider for being appointed by the IRS to the Internal Revenue Service Advisory Council (IRSAC)!! Way to go, Jeff. Congratulations to the dozens of you who have sent out your APP Brochures and Sales Letters, and shoutouts to: Diane Lash, Barbara Ann Mills, Sherry Borshoff, Ron Friedman, Mendy Owens, Pam Jipp, Kevin Huston, Lillian Bowman, Raul Torres, Roy Escosar, Mary Ann Bone, David Behr, Stacy Sand, Peter Philando and Matt Previte for sharing that they mailed them out!
Thank you to Carlton Perkins for sharing that not only do we support our members in helping them grow their businesses, but we also help our members when they are left in the dark! Carlton was attending a seminar and sitting next to Pam Britz when the lights went out in the hotel. Luckily, Pam had her Roz Strategies keychain with attached flashlight, and was able to see the material they were studying until the lights went back on. LG Brooks was the speaker — we know LG is an electrifying speaker — but this time he blew the lights out! A special thank you to Steven Rosenbaum for summarizing the 2018 Tax Reform Act and posting it in the Audit Protection Network Members Facebook group to share with other APN members! Do you have a story or picture to share with us on something you’ve implemented, client you 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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O U T S !
Kudos to Mark Klecka and Edmund Ricker for mailing out your newsletters, and to Ayton Taylor for mailing out your referral letters! High five to Anh Lee who crushed it in 2017! He received a proclamation by the city of Fairview Heights recognizing his ten years of service to the community, and also for being recognized as the top CPA firm in Southwestern Illinois by the Small Business Journal during the Small Business Week, and then for being recognized in the “Who’s Who” in the Small Business Journal. And for also writing two books: “Cracking the Secrets of TAX ANXIETY DISORDER, A Complete Guide to Tackling Your Tax Problems.” The second book, “The Guide Book in Tax, Accounting, and Financial Services in USA,” is dedicated to helping immigrant Vietnamese people to better understand and make intelligent choices in tax, accounting, and financial services.
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11271 Ventura Blvd #612 Studio City, CA 91604 Inside This Issue pg 1 ∙ Not the Judge or Jury pg 2 ∙ As I See It pg 3 ∙
From the Practice Corner
pg 4 ∙ Member Spotlight pg 5 ∙ Save The Date pg 6 ∙ Shoutouts! pg 8 ∙ IRS Terror Tale of the Month
IRS Terror Tale of the Month ‘Poker Princess’ Leaves More Than Her Cards on the Table
Most young people in their 20s who come to Hollywood are looking for fame and fortune. After growing up as a competitive skier in Colorado, Molly Bloom just wanted some sun. What she found instead was the shadowy world of high-stakes poker and a path that would ultimately lead to her arrest by the FBI and the IRS demanding thousands in unpaid taxes. Many people are already familiar with Bloomwho wrote a memoir about her experience as the“Poker Princess,”and her book, “Molly’s Game,”was later adapted into a movie of the same name, starring Jessica Chastain. For those who don’t know, in 2001, Bloom took a job as a cocktail waitress in Los Angeles’Viper Room, where she helped run poker games. Players included actors like Tobey Maguire, Leonardo DiCaprio, and Ben Affleck. She discovered she had a talent for running the games, and in a single year, Bloommade over $4 million in tips. In the beginning Bloom kept her operation legal by paying taxes on her income, but things became shady in 2009 when Bloom relocated and started her own underground games in NewYork. To help players keep playing Bloombegan extending credit. But after getting stiffed $250,000, Bloombegan taking a percentage of the pot, which is illegal. The IRS, of course, doesn’t care how
one earns their money. Legal or not, you have to pay taxes on that money. In 2011, the government came knocking—or, more accurately, 17 FBI agents armed with automatic weapons crashed through her door. The government seized all of Bloom’s money, and the IRS demanded she cough up the nearly $1,000,000 she owed in back taxes. Bloom’s mother had to sell her home in order to get her daughter out of jail and pay the legal fees. Charged with a federal crime, Bloom could have spent years in federal prison. However, though she pled guilty, the judge determined she was just a minor player in the gambling ring. In 2014, Bloomwas
sentenced to one year of probation, 200 hours of community service, and a fine of $1,000.
Although Bloomgot a Hollywood ending, she’s aware of how lucky she is. Gifted with a second chance, Bloom is negotiating with the IRS to figure out a payment plan for her restitution and has launched a service to help women succeed in their own business ventures.
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