How To Get Started Offering Tax Resolution Services In Your Existing Accounting or Tax PracticeJassen Bowman, EATaxMarketingHQ.com

1

Enrolled Agent specializing in IRS Collections representation.

Author of the Amazon bestseller Tax Resolution Secrets, showing consumers how to address their tax debt problems.

Built boutique tax practice from $0 to $35,000 per month in just 10 months.

Founder of TaxMarketingHQ.com

Consultant to dozens of highly successful tax resolution practices, from solo practitioners to firms with 30+ employees.

Jassen BowmanTaxMarketingHQ.com

2

My Goal TodayYou have to stop doing $10/hr work, and do more $100, $250 and $500/hr work.This is the $250 - $500/hr work.Accomplished via proper leverage of systems and staff.TaxMarketingHQ.com

Im here to show you how to make more money, without working more hours.

3

ObjectivesWhy YOU should add this profit center to your practice.Size of the IRS Collections market.What the competition looks like.How to attract tax resolution clients.How to quote fees.How to get started.TaxMarketingHQ.com

4

Marketing SmartDemographic analysisGetting better clientsResolving payment issuesMarketing performance trackingCRM platformDirect response marketing through other mediaThatll never work in this business.People on the Internet arent looking to spend money.Introduced the concept of lead follow up.TaxMarketingHQ.com

5

Massive Market OpportunityTremendous need for competenttaxpayer representation.TaxMarketingHQ.com

6

IRS Collections Activity In 2014

7.6 million new collections casesClosed 6.9 million collections cases12.4 million open collections cases at the end of FY14Net increase of over 689,000 collections cases over FY13$130 billion in outstanding tax, penalties, and interestTaxMarketingHQ.com

7

More Collections Activity In 2014Over 3.5 million delinquent tax returns535,580 new tax liens filedThis is decrease from 707,768 in 2012Decrease from 602,005 in 20132012 threshold change from $5k to $10kSerial debtors will have smaller liens filedNearly 2 million levies served on third parties27,000 Offers in Compromise accepted out of 68,000 applicationsVast majority of rejected Offers were ineligible to begin withTaxMarketingHQ.com

8

National Tax Resolution Firms$550 million annual industry if not more.Based on sales data Im privy to, my knowledge of different company sizes, average ratios, etc.Only includes large, national firms, not local services

Turn & burn mentality

High sales pressure from unknowledgeable sales people

FTC & State AG crackdownsAmerican Tax ReliefRoni DeutschTaxMastersJK HarrisTaxMarketingHQ.com

9

Local, Unique ServiceYou'll gain an edge in your market place for being able to deliver a service NOT provided by other practitioners.Extremely few CPAs offer representation.98% of EAs offer only tax preparation.Even tax attorneys rarely offer collections/audit representation to their clients.Most collections representation is sold to tax debtors by giant, out of state, hard-sell marketing companies.TaxMarketingHQ.com

10

Incredibly Lucrative OpportunityAverage client fee: $3,500 to $5,000Solo practitioners: 4-6 new cases per monthWith 2-3 assistants: 20 cases per month$11,000 - $55,000 per monthRamp-up time: 60 days or lessHigher fees with better niche targetingPower of being in person and localTaxMarketingHQ.com

11

OpportunityHigher fees with better niche targeting2290 cases: $5,500 average feeReal estate investors: Unique cases, lower debts, higher feesExpats: Typically higher net worth clients

Power of being in person and local

Youre a tax professional, not a salesman

Lifetime Customer Value

TaxMarketingHQ.com

12

Creating an IDEAL tax practice starts with attracting IDEAL clients.TaxMarketingHQ.com

IDEAL Client ProfileRefer to the IDEAL Client Profile Exercise.

What services do you offer them?What are their financial commonalities?DemographicsGeographics

Compare current client profile to your IDEAL Client Profile.

TaxMarketingHQ.com

Once youve identified who your IDEAL clients are, you need to get them in the door.TaxMarketingHQ.com

Le MarketingIf your business purpose has anything to do with:

Increasing revenueGrowing your clienteleExpanding your service offeringsExpanding your geographical footprint

then youre not in the tax business.TaxMarketingHQ.com

Youre in the marketing business.TaxMarketingHQ.com

What is marketing?The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to satisfy customers.TaxMarketingHQ.com

Planning & ExecutingMarketing is a process.Marketing should be planned.Marketing execution should be scheduled.Think in terms of campaigns, not singular events.Implement for results, not image branding.Understand your market, message, and media.When available, use whats already been demonstrated to work.

TaxMarketingHQ.com

OK, so how do I get clients?Existing clientsReferrals from professional networkTeach CPE in order to get referralsPut on local seminarsSpeak in front of niche groupsPublish a monthly client/prospect newsletterPPC advertising on Google, Facebook, Twitter, LinkedIn, Pinterest, etc.Retargeting ads to appear on major sites such as NYT, Huff Post, etc.Publish a book2012-13: I averaged two+ fresh leads per week from my Tax Resolution Secrets book on Amazon2014-15: Still average about 1 per monthWrite articles for publicationGuest bloggingFinancial forumsLocal business journal columnEmailDirect lead generationFollow-up autorespondersLead magnet delivery

TaxMarketingHQ.comLocal radio adsPost on CraigslistBus bench adsDisplay ads in Tidbits, Coffee News, Local business journalValPak, MoneyMailer, EDDMTelemarketingWebinar invitesSeminar invitesDirect appointment settingDirect mail follow-upVoice BroadcastFax BroadcastDirect mailNew tax liensAged tax liensGeographical SIC listsSMB shareholder-officersUSM Dream 100WebinarsThis alone can fill your entire pipeline.

20

Tax Lien MarketingFastest, most powerful direct response lead generation tactic for rapidly establishing a tax resolution practice.

Heavy competitionbut only for two weeks.National firms only go for the low hanging fruit.TaxMarketingHQ.com

21

Tax Lien Marketing

Tip #1: Make contact through multiple channels.

National firms are 95% telemarketing only.A few have basic, limited fax/email follow up.Very few ever even try direct mail, unless they work with a marketing consultant.Use telemarketers as a follow up to other channels.TaxMarketingHQ.com

22

Tax Lien Marketing

Tip #2: When using direct mail, always mail more than once to the same tax lien.

Numerous studies demonstrate that response rates on the 5th through 8th mailing usually exceed the cumulative response rates from mailings 1 through 4.My own testing indicates that as little as a three time mailing, in sequence with IRS notices, increases overall response rate by as much as 5x.

TaxMarketingHQ.com

23

Tax Lien Marketing

Tip #3: Make strong offers.

The free consultation is no longer a sufficient response offer its a basic public expectation.Use response widgets:Special reportsWebinarsLive seminars

Bonus Tip: Telemarketers to offer live seminars.TaxMarketingHQ.com

24

Tax Lien Marketing

Tip #4: When a lead is generated, follow up forever.

Not enough can be said about long term prospect follow up.Prospects should be treated equally with clients, and receive at bare minimum 24 touches per year from you preferably 50 or more.Most touches cost less than $1.

TaxMarketingHQ.com

25

Tax Lien MarketingTaxMarketingHQ.com

26

Tax Lien MarketingTaxMarketingHQ.com

27

Tax Lien MarketingTaxMarketingHQ.com

28

Client Acquisition Cost ExamplesMy lawyer sez to tell ya

The following examples are for illustrative purposes only. Your results may vary. In fact, they definitely will vary, based on geographical factors, demographic factors, local competition, media choices, and other factors completely beyond my control. Past results are no guarantee of future returns. Consult with your physician before beginning any exercise program.TaxMarketingHQ.com

29

Client Acquisition Cost ExamplesTelemarketing OnlyAverage opener needs 60 liens to get an interested contact on the phone.Average closer will close 1 in 11 transfers (9%).Average fee = $2,750Typical commissions = 30%, = $825Lien list cost: 660 liens x 35 cents = $231Total cost to acquire client: $1,056

TaxMarketingHQ.com

30

Client Acquisition Cost ExamplesDirect Mail Letters2,000 niche targeted tax liens ($349)3-letter sequence in sync with IRS notice cycle6,000 letters mailed = $3,6002% response rate = 40 prospectsClose 1 in 4 now, more later via follow up programs10 new clientsAverage fee = $2,750, so $27,500 in new client feesTotal cost: $3,949Total cost to acquire client: $395

TaxMarketingHQ.com

31

Client Acquisition Cost ExamplesDirect Mail Postcards + Telephone Contact2,000 niche targeted tax liens ($349)8-postcard sequence in sync with IRS notice cycleTelephone follow-up at least 1x to each lien16,000 pieces mailed = $6,720Assume conservative 6% total response rate = 120 prospectsClose 1 in 4 now, more later via follow up programs30 new clients @ $2,750 each$82,500 in new client feesTotal cost: $7,939 (including telemarketer @ $10/hr)Total cost to acquire client: $265

TaxMarketingHQ.com

32

Youve got leads. Now what?Sales.TaxMarketingHQ.com

Dont lose sight of the objective

TaxMarketingHQ.com

Consultative SellingSales, just like marketing, is a process.TaxMarketingHQ.com

Consultative SellingIt boils down to needs analysis.TaxMarketingHQ.com

Consultative SellingGo through Case Review Worksheet.Review notices.Discuss source of taxpayer liability.Segue into financial questions.Income/expense considerations.Asset considerations.Proceed to Tax Resolution Sales Closing Checklist, depending upon business model.Split sales model.Integrated sales model.TaxMarketingHQ.com

Consultative SellingThis process ultimately leads to the fee quote.TaxMarketingHQ.com

Fee ModelsI vehemently believe that basing fees solely on the lien amount is a disturbingly unethical practice.TaxMarketingHQ.com

39

Fee ModelsHourly with retainer $150 to $300 per hour across country

Flat Fee$1,500 to $5,000 common rangeGenerally excludes tax preparationGenerally does include appeals and levy release work

Menu of Services (with or without retainer)Levy Release - $400 to $1,200OIC Application - $500 to $3,500Lien Subordination - $500 - $1,500Representation - $1,000 - $5,000

TaxMarketingHQ.com

40

My Fee Model (in gory detail)$2450 minimum representation feeMost straightforward streamline IA cases will qualify for this.Non-streamline minimum: $2950Explicitly excludes preparation of unfiled returns.Explicitly excludes reconstructive bookkeeping required to prepare returns, create 433, or meet RO demands for P&L, etc.Explicitly excludes levy release work.Comes in with levy: Add $500 to base fee, require 50% up front in certified funds.Future levy: Also $500Includes IL, FA, negotiations, Appeals, lien subordination, PA app, etc.If OIC eligible, generally add $500 to $1500, depending on situation.TFRP representation: $1500-$1950 per personIncludes 1040 rep for that person if they have 1040 issue also. Add to base fee quote based on initial consultation to compensate for any special circumstances, unusual situations, etc.Example: Truckers that will need me to intercede with factoring company.Add personality surcharge based on how difficult I perceive the client to be to work with.

TaxMarketingHQ.com

41

After they say, Yes, help me NOW!!!TaxMarketingHQ.com

Guess what???

SURPRISE!

.Its a process!

Lets take a deeper look at one tiny piece of client intake and case workTaxMarketingHQ.com

Making Sure You Get Paid!Never forget that you are working with professional debtors.TaxMarketingHQ.com

48

Making Sure You Get PaidDont become just another creditor.TaxMarketingHQ.com

49

Making Sure You Get PaidEnforce written payment policies.

Example policies:XX% of fee up front in certified funds or credit card.Signed payment schedule with future dates and amounts of fee payments.Require weekly or biweekly payments, not monthly.Stop ALL work upon bounced/rejected payment.For certain industries, you may want to always require certified funds or payment in full, up front.TaxMarketingHQ.com

50

What does this look like in practice?Four tax resolution cases per month brings you

$132,000+ in annual representation fees$25,000 to $50,000 in unfiled return prep$12,000 to $20,000 in new annual tax prep feesIn four years, thats nearly 200 recurring tax returns from just representation clientsplus their referralsplus insurance, wealth management, bookkeeping, etc.

51

For additional resources, visit:TaxMarketingHQ.com

52