Roz Marketing - May 2021

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Why Aren’t You Giving Your Clients Hope?

The Roz Report

MAY/JUNE 2021

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Who Coaches the Coach?

My Hunt for the Perfect Mentor

I always say, “Experts are always students first.” Let’s face it, the best coaches have coaches; even Tony Robbins has a coach. Roslyn and I have been lucky over the last seven years since we launched Roz Strategies to have worked with some wonderful coaches that we respect and admire. And, a few weeks ago, we took a road trip from our home in Los Angeles down to the San Diego area to visit one of our business coaches, Roland Frasier. Technically, it was a work trip, but with being home more because of the pandemic, it felt like a mini-vacation. I even liked the drive on the freeway because there wasn’t any traffic, which is rare for SoCal. We stayed at a nice resort on the beach, walked through the coastal village, and ate all of our meals outdoors. The weather was beautiful, and it felt so good to get out of the office after a year of lockdowns. Of course, San Diego wasn’t all fun and games. Roslyn and I also visited Roland for our second-strategy session. Roland is a master entrepreneur who has built or sold two dozen million- and billion-dollar businesses, including five that were named “fastest growing companies” by Inc. Magazine. As with our first meeting with him, the connections and introductions he made for us that day, and in our meeting with him last year, were priceless! When I was still in the tax resolution business, one thing I really struggled with was finding a good coach. Even back then, I knew I needed someone to point out my blind spots, keep me focused, and teach me how to make my business grow. But there was one big problem. I couldn’t find anyone who met my No. 1 coaching criteria. My rule is simple: “Your coach must already have accomplished the things you want to achieve.”The issue was that I was one of the biggest fishes in the tax resolution pond. I was running a $23 million company. No one else out there, at the time, was doing the things I wanted to do, and I knew it didn’t make sense to ask someone who never did

Roslyn andme out to dinner beforemeetingwith Roland Frasier.

“My rule is simple: ‘Your coach must already have accomplished the things you want to achieve.’”

the kind of numbers I was doing for help with things he or she had never dealt with personally. I was stuck! So, I had to become my own coach. Honestly, I don’t recommend that path. It was a struggle, and I learned a lot of lessons the hard way. I made many mistakes, but trial and error enabled me to create the process, which would make me a great coach in the future to tax accountants and resolutions specialists like you. And when I left my tax resolution practice and pivoted to launch Roz Strategies and help others add or grow their tax resolution practices, Roslyn and I invested in programs,

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HOW GEORGE CLOONEY SAVED MY LIFE FOOD FOR THOUGHT F rom my front door to George Clooney and his lovely wife Amal’s house is 3,000 steps, give or take a step. How do I know All was well with my exercise schedule until the pandemic hit, and the only thing left was our weekly trek up the canyon, and then even that closed

this? It’s not because I’m stalking him. It’s because the walk to George’s house saved my life. Before I share how George saved my life, let me say it’s no secret where he lives — or shall I say, where one of his houses is, because he has more than one. But his house in Studio City that he purchased in 1995 while staring in the TV show“ER,” as Dr. Doug Ross, backs up to a conservation park and hiking trail. He’s talked about it many times and even recently shared on talk shows that during the pandemic, he took walks in the neighborhood with his young twins. I’ve been walking past his house to access the trail for about as long as he’s lived there, and I’ve never seen him, but maybe we walk at different times. I haven’t always been a few thousand steps from George’s house. Michael and I moved into the neighborhood and close to my favorite hiking trail in 2020. The reason why so many people, including George and me, love this trail so much is because not only does the 2 1/2-mile loop path take you off the busy roads of Los Angeles up a dirt road surrounded by beautiful wildflowers with a magnificent view of the San Fernando Valley, but half of the walk is also up a steep hill, so it’s also a great cardio workout. I’ve taken this hike weekly with my close friend Debbie for close to 30 years. Debbie is my workout muse; she’s the person who is in great shape with a regular workout routine who inspired and motivated me years ago to have one of my own.

down. Oh, sure, it was great to have the real excuse of literally nowhere to go to exercise, but after a while, I not only missed my workouts, but I also felt out of shape. So, I started walking to George’s house three times a week. I had to do something, and for some reason, I thought, walking is one of the best things you can do for your health, and he lives up a steep hill, so I get most of my steps and cardio in while also enjoying the view along the way. I don’t know exactly why, but for some reason, I felt inspired to walk to George’s house other than taking a random walk. So, when I’d get home from work, or on the weekends, and put on my sneakers and Michael would ask me, “Where are you going?” I’d say, “I’m off to George and Amal’s house.” I joked to a few friends about my walk to his house, and someone asked if I ever met him. Honestly, it’s fine if I don’t meet him or Amal because what would I say to them anyway? “We’re almost neighbors, do you want to come to my house for a backyard BBQ?” And okay, George might not have literally saved my life, but he wasn’t a real doctor on “ER” either. But maybe the walk to his house saved me from high blood pressure or gaining weight, both of which I have to keep an eye on, and that’s a life saver. So what’s this have to do with you? We all know this past year has been one of the most challenging, and many of you have made pivots in your work and business life. But what about other parts of your life? Did you make pivots there? Because

Roslyn and Debbie on their weekly walk through the Conservation and past George Clooney’s house.

even when everything in your life shuts down, like mine did with gyms, beaches, and hiking trails, I still found a way to make what was important to me happen. Sometimes, you just need to be creative in your pivot. Now that my gym is open again, I don’t walk to George’s house three times a week, but I still walk by it at least once a week with my friend Debbie. So, here’s my question to you: What thing in your life changed recently that caused you to not have the ability to do what you love to do that you would like to do again? Get

creative and figure out a new way to do “that thing,” so your life can be saved too, especially if it’s a fun thing!

–Roslyn Rozbruch

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PRACTICE CORNER FROM THE

Helping a Client Who Has a Substitute for Return

Substitute for Return What is a Substitute for Return

(SFR)? It’s the IRS’s way of getting the taxpayer’s attention when he or she fails to file a tax return! The IRS files an SFR when it believes there is tax due and the taxpayer is trying to shirk the responsibility of paying by not filing a legally required income tax return. NOTE: The Record of Account (ROA) may indicate that an SFR was filed. An SFR is filed by the IRS, not by the taxpayer. An SFR filing is a tax return that the IRS prepares and files on the taxpayer’s behalf. (You can determine if the return on file at the IRS is an original return filed by the taxpayer or an SFR just by knowing what to look for on the ROA.) The IRS assesses an SFR after it has repeatedly tried to get the taxpayer to file and has been ignored. Generally, the amount of tax penalty and interest due is MUCH greater than if the taxpayer actually filed his or her own original return. The reason for this is that the IRS uses the highest tax bracket for the taxpayer’s filing status (married filing separate), and the service only gives credit for one exemption and the standard deduction. The IRS ignores the actual filing status and number of dependents and does not allow for itemized deductions or expenses, such as home mortgage interest and property taxes, that the taxpayer might have actually paid. HowDoes the IRS File an SFR? If your client has an SFR on file, what this means is that the IRS uses the gross amounts of 1099-Misc or 1099-NEC income and 1099-B brokerage stock

sales when figuring the taxpayer’s taxable income, without any regard for the “basis” or cost of the stock, nor does the Service give credit for any business or self-employment expenses associated with the taxpayer’s 1099-Misc income. The IRS can take up to six years to file the SFR but generally files one within 2.5 years from the due date of the return. Once the SFR is assessed, the 10-year CSED applies unless when filing the original return there is additional tax due (than what the SFR reflects), as this will trigger a second CSED from the date of the recently filed original return. What to Do if Your Client Has an SFR The good news is that you can replace an SFR at any time by filing the original return! This, in and of itself, may greatly reduce what the IRS is claiming your client owes. I like to refer to this as an “SFR settlement” because in some instances, just filing the original returns will replace the SFRs and resolve the taxpayer’s account. I have seen SFR balances in the mid-six figures, and more, be reduced to $0. I’ve even seen, in some cases, where the client received a refund, all because they filed an original, accurate, and complete income tax return.

Another major reason to replace SFRs with original returns is generally, you cannot discharge SFRs in bankruptcy. You can discharge originally filed income tax returns, but there is a set of complex rules you must know and follow. Some practitioners think they don’t need to replace an SFR, as they are going to be doing an offer in compromise (OIC) anyway to reduce the amount owed. I think this may be a short-sighted strategy, as there is no guarantee that the OIC is going to get accepted in the first place. Better to reduce what’s owed first by simply replacing the SFR with an original return than go for the OIC or PPIA, etc. An SFR is usually bad news, and unless there is a compelling reason not to replace an SFR (e.g., filing the original return will result in more tax), you should generally always file original returns to replace SFRs. When your client has come into compliance by filing all required tax returns, you are ready to proceed with the resolution of the case!

–Michael Rozbruch

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Greg McCauley, Attorney Member Spotlight:

Tax and business attorney Greg McCauley Jr. has represented more than 1,000 clients before the IRS since taking on tax representation in 2015, but he’ll tell you it’s not about the numbers. “I haven’t tabulated howmuch we’ve settled out with the IRS, and it’s a lot,”he says. “But my favorite case is when you can really change somebody’s life.” Greg’s path to practicing law began early. “I always had an inkling that I wanted to be an attorney,”he says. “Several members of my family are attorneys —my dad, one aunt, three uncles, my grandfather, and a great uncle who’s a federal District Court Judge. So, I guess the law was ingrained in me from a young age.” Greg graduated from college with a double major in finance and risk management/insurance. He continued his education and earned his J.D. preparing to begin a career in corporate/shareholder litigation — or so he thought. “I was a summer associate at a corporate litigation firm in Wilmington, Delaware,” Greg explains. “I met recent graduates who were practicing corporate litigation and found that all these young attorneys were forced to sit in a back room, research and write, and bill and bill and bill. Most of them were working seven days a week, 10 to 12 hours a day, to meet billing requirements and had no actual exposure to clients or the courtroom.” Greg didn’t like that view of his future. “I made the decision that I’d much prefer to deal directly with clients,” he recalls. “I had a lot of exposure to my father’s practice, who solely represented taxpayers. He was looking to expand his practice about the

time I was to graduate, so I made the decision to join him.”

Everything came together when Greg and his father attended a conference where Michael spoke about running a tax resolution business. “Listening to Michael and learning from him, one of the things I’ve really focused on is learning how to run the business aspect and acquire clients,”Greg explains. Greg credits his father, who has been doing IRS representation for over 30 years, as being a great mentor. Part of his father’s advice has been to do your own research. “If I had a question, my dad was there with the answer, but he did not want to spoon-feed me everything. My first case on my first day was a complex revenue officer case. So, he really threwme into the fire right off the bat,”Greg says. “What he really wanted me to focus on is what Michael teaches —how to run the back end of the business and learn to pitch clients.” Greg recalls that learning to acquire clients was the most difficult aspect of tax resolution for him. Now, he fields the majority of the firm’s new client inquiries and has the highest closing rate in his office. The McCauley’s tax resolution practice has grown significantly since Greg joined the firm, which was his goal from the beginning. “I aspired to come in and help my dad not only run his practice but also grow it.”The firm has not only grown its resolution practice, but it now also represents several clients per year in criminal tax cases and is keen on continuing to grow that aspect of the business.

Greg and his family enjoying the lights!

company was assessed a trust fund recovery penalty of $1.25 million,” he says. “One of the first things he told me was that it had really destroyed his life. He had attempted suicide twice before reaching out to us. We were able to settle his case with the IRS through an offer in compromise. I quite literally get thank-you letters from him every couple months. To change that guy’s life, that was big for us.” Not only does Greg like running a tax resolution practice, but he also likes the freedom he has to spend time with his family. “I married my wife, Samantha, in 2015, and we have a daughter, Remington, who’s almost 2 years old. She kind of runs our life,” he chuckles. “We’ve got two dogs. I enjoy skiing. I try and take one or two ski trips a year, particularly up to Maine or Vermont. We also enjoy spending our summers down at the beach in the Jersey shores and take some winter vacation trips to Naples, Florida.”

Some 1,000 cases later, Greg shares one case that stands out. “A CFO of a

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When it comes tomarketing for clients, and you’reworried about sending out your lead genmagnet, Michael says, “Good is good enough!” AND, if you ask

him if he’s ready for the Tax Resolution Success Summit, he says: SAVE THE DATE Thursday, Aug. 26; Friday, Aug. 27; and Saturday, Aug. 28 Register now for early-bird pricing. For

more details, visit RozStrategies.com/summit. Don’t get left behind! This event only takes place once a year! Newspeakers and newstrategies can take your practice to the next level or jump-start a practice you’ve dreamed about! Formore information, go to RozStrategies.com/summit, contact our concierge Ruthie at Ruthie@RozStrategies.com, or call our offices at 888.670.0303. STRATEGIZE * IMPLEMENT * MULTIPLY

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S H O U T

Brian Good , we love the new phrase you’ve come up with

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seminars, and coaches so we could provide the best services and programs to our tribe.

and saying you’ve been “Rozinated”! Good for you, Norman A. Wierer,

Over the years I have learned from so many mentors that I respect and admire, Roland being one of them. And during our meeting with him, he reminded us of one of the biggest lessons of mentorship: You can’t just listen to your coach and assume listening is enough. You have to take action and implement their advice! His coaching technique forces you to take action. He told us about an advertising strategy he recommended: selling ads on YouTube videos. Then, that very minute, he called up the person he uses who could create a YouTube paid ad strategy for us. By the time we hung up the phone, we had struck a deal to get started. Money likes speed! But what’s this have to do with you? Well, I have an opportunity for you, whether you’re in my membership or not, because this summer, I’m bringing back my “5 Day to 5K Tax Resolution Challenge”! Last year was the first time I held the challenge, and many who participated had huge successes, even after the first day, so I decided to do it again! What’s great about this challenge is it’s for anyone who is interested in tax resolution or already offers these services. This is a fun and easy challenge that yields results in five days! It’s after tax season, and it’s a good way to kick-start the tax resolution side of your business. There’s also an official Challenge Facebook group. There, you’ll meet other tax professionals, and everyone supports each other virtually and holds each other accountable — plus, there are lots of chances to win amazing prizes! Keep an eye on your inbox for a notification with more information and an invitation to the “5 Day to 5K Challenge.” I hope to see you there!

for sending out the Audit Protection Plan client sales letters and for putting your APN logo on

your newsletters that you mail out! Great job, Patrick Noone , for hitting a milestone — for the first time since doing tax resolution work,

clearing $40,000 in fees in the month of March alone! And also for getting five new clients in one day! Here’s to more months like that and beyond. Kudos to Guy Finocchiaro , whose client owed $107K to the IRS, and you discovered some cost basis was not properly disclosed on Schedule D, and the client received an IRS letter showing $100K decrease in tax liability. Client now owes $7K, and Guy is working on CNC status. High-five to Tracie Lowe , who felt like Wonder Woman (and is one) when she saved her client a $20,000 tax liability. And also for being a speaker and sharing your financial knowledge with 100 Black Women of NCBW South Palm Beach Country at the Sisternomics event. Knowledge is power, and by sharing yours, you’ve empowered many women!

–Michael Rozbruch

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O U T S !

Congratulations to Joaquin Torres Hernandez , who got the IRS to close an audit and send his client a full refund. And also for securing new tax resolution clients. Congrats to Jason Jones for helping a client resolve an IRS mistake, resulting in a 45% reduction in their client’s tax bill. Awesome, George Leddicotte, for sharing that you secured 9 out of 9 leads and that seven came from your TV commercials and two were from internet searches. That’s what we call Supercharging Your Profits®! Way to go, Peter Paulino , on sending out your first mailing of 500 letters and getting a call! Remember the money is in the follow-up! High-fives to Simplice C. Essou, Angela Buffington, Owais Shamsi, Alan Todd, Ergedine Pericles, Louise Hartford, Syed Munir Zaidi, and Fanta Kaba for sending out referral letters! Keep up the good work! 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 ∙

Who Coaches the Coach?

Food for Thought

pg 2 ∙ pg 3 ∙ pg 4 ∙ pg 5 ∙

From the Practice Corner

Member Spotlight

Save the Date for Our Virtual 6th Annual Tax Resolution Success Summit

Shout Outs!

pg 6 ∙ pg 8 ∙

Terror Tale of the Month

IRS Terror Tale of the Month It’s an Airball for This Basketball Star

In basketball, it’s illegal to double dribble, and in taxes, it’s illegal to not pay your federal as well as state taxes. And while former University of Kentucky and NBA player Randolph Morris has never been accused of double dribbling, he has been indicted for double dipping and then some —or more specifically, wire fraud and tax evasion. Morris, who played at the University of Kentucky from 2004–2007, went on to play for the NBA after college. He dribbled for the NewYork Knicks and Atlanta Hawks from 2008–2010. Then, he headed overseas to play ball for the Chinese Basketball Association (CBA) team the Beijing Ducks. There, he led his team to victory in the CBA Championship in 2012, 2014, and 2015 before leaving for the Guangdong SouthernTigers.

According to the Department of Justice, Morris failed to report the more than $13 million dollars he earned on his federal tax returns during the years while playing for the Beijing Ducks. He also submitted false income information to the Kentucky Department of Revenue for the tax years of 2015–2017, depriving the state of Kentucky of more than $400,000 in tax revenue. All in all, the 35-year-old Morris has been charged with an 11-count indictment. Morris may have thought that tax evasion was a slamdunk, but he missed his shot. Now, he’s facing up to 20 years in jail and $250,000 in fines for each of the three wire-fraud counts, and up to a maximum of three years in prison for the other eight counts of false statements on his state and federal tax returns. As of this writing,

Morris is still overseas playing for the Lebanese professional basketball team Al Riyadi. But he’ll leave the basketball court and head for the U.S. court when his appearance is scheduled.

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