Sep 12, 2019
Jong Lee is a CPA and also has a doctorate in Business Administration. He’s been a teacher and has taught both accounting and taxes. Several years ago, he took on tax resolution in Los Angeles and that really opened his eyes. His previous experience as a forensic auditor tied right into his work in tax resolution.
[5:25] Jong had always wanted to get into tax resolution work, but he wasn’t sure how to actually do the work. When he got started, he didn’t even have an account description for tax resolution to charge his clients. Most of the time, he was doing tax resolution over the course of his regular tax work.
[7:00] It wasn’t until his staff noticed that Jong was begging instead of representing his clients that he made a change, and that was when Michael came into the picture.
[7:40] Now the average amount of tax resolution work that Jong takes on is somewhere around $80,000 per month.
[8:30] Self-confidence and taking away the fear of the IRS is one of the biggest benefits that Jong has gotten from learning the tax resolution system. One of the reasons that most practitioners don’t offer tax resolution services is because of fear. One of the keys to remember is that many of the people at the IRS don’t know what their own rules are and it’s your job as the tax resolution expert to know more than they do.
[11:05] Jong takes on an average of 20 cases per month and charges around $5,000 per case. 80% of his business comes from ads played on the radio and the remaining 20% comes from searches on Google. One of the fastest ways to grow a tax resolution business is through radio advertising.
[13:00] Don’t try to reinvent the wheel. Jong essentially follows the training system and marketing strategies laid out in the tax resolution training system.
[14:30] Jong has 4.5 people dedicated to the tax resolution side of his business and around 60% of his time is dedicated to doing the work. The rest of his time is really focused on marketing, sales, and finding new clients.
[15:50] There is a surprisingly large amount of tax resolution business out there and it’s one of the best services you can offer because it’s something that will completely change people’s financial lives. Once you do that, you’re going to have a client for life. The lifetime value of a tax resolution client is much higher than just the initial fee.
[18:35] The number one factor in divorce is financial difficulties. It impacts every decision you make and causes a ton of stress. Tax resolution is a service that saves people every day.
[19:50] Jong is a member of a group in the San Francisco area that’s similar to the BNI that has been a great source of referrals for his business.
[21:15] One of the biggest keys to success in tax resolution is to join a group of fellow practitioners that you can bounce ideas off of and communicate with.
[22:20] Tax resolution work is different from accounts receivable. It’s deferred revenue that you collect over time and allows you to plan your business because you know how much money is coming in.
[24:50] The advice Jong would give to someone considering getting into the tax resolution business is to reach out to Michael and learn the ropes. Come out to the events and talk to other tax resolution specialists and learn how they got started.
[28:40] Fear is a mile high and a mile long, but it’s paper thin. You poke your finger through and that’s where personal growth is. Don’t be afraid of the IRS. There is nothing you can do that will make your client’s situation worse. Knowledge will give you the confidence to deal with them.
[31:15] The pendulum is swinging back to enforcement for the IRS. 2019 is the first time in seven years that Congress has increased the budget of the IRS. Levies have increased by 8% this year. Getting in the tax resolution business now is getting in the ground floor of a great opportunity.
Mentioned in this episode:
Rubicon Tax Relief
Michael Rozbruch's Tax & Business Solutions
Academy