Jun 4, 2020
Paul Colligan has switched seats with Michael for this episode of the podcast to ask some very important questions about the future of the tax resolution industry.
[1:15] How do tax resolution practitioners get ready when we don’t have an idea what’s going to happen in the world of taxes over the next 12 months? Michael has experienced three major downturns during his 22 years in the business, and in his experience the years following a downturn are major opportunities for tax resolution.
[2:40] Pre Covid-19, there were 13.2 million people already identified by the IRS as owing taxes. There will probably be another 10 to 20 million more collection cases coming up over the next few years.
[3:15] We are going to see the largest influx of payroll taxes cases coming down the pipe very soon. The IRS is the only creditor in the world that can pierce the corporate veil without a court order, and this may lead to an additional Trust Fund recovery penalty tax case for every payroll case.
[5:00] There were 30 million people that were planning to file on April 15th, but the filing date keeps getting pushed back. What’s going to happen to those people who won’t have the money to pay their taxes once it finally comes due?
[5:55] The IRS isn’t closed; they’ve just reduced their activities, but when July 15th comes around and everything goes back to business as usual, all hell is going to break loose.
[7:10] Michael teaches his members to never take their foot off the marketing gas pedal. When things get slow that’s when you should double down on your marketing to keep your pipeline full. When the floodgates open people are going to be turning online for solutions and if they can’t find you, they can’t retain you.
[8:40] It’s more important than ever to have an online presence right now. Now is also the time to negotiate rates with radio companies as Michael hasn’t seen advertising rates this low for 18 years. Radio stations have inventory to sell and will be looking for ways to raise revenue so incredible deals will be available over the next couple of months.
[11:10] The government is hungry and they’re going to be closing in soon. The tax resolution specialists that embrace marketing and make it the overarching umbrella for everything they do are the ones who are going to profit.
[11:45] Most CPAs and enrolled agents believe that if they went to the best school that it guarantees success, but it doesn’t. In today’s world, marketing is what guarantees success.
[12:35] If you’re in business, you’re in sales whether you realize it or not. Many people have a mindset issue around their business and marketing. They believe their deliverables are primary, but they have to come secondary to the marketing if they want to create wealth and become rich.
[13:15] One of the major opportunities for tax resolution specialists lies in calling their past business clients and helping them understand what assistance and relief programs are available to them right now. It’s also the perfect time to help your clients do some financial planning in reverse and put them into the best situation they can be to minimize their tax settlement. There are a number of tips and tricks that you can do right now with your clients because you have the luxury of time.
[17:05] There are a number of opportunities for accountants to help their clients get what amounts to essentially free money.
[18:30] The SBA/PPE is not a long-term business strategy. If you haven’t done it yet the window of opportunity is closing.
[19:55] The effects of the 2008 recession on Michael’s business lasted for three years. The same is likely to happen this time around. IRS problems have the habit of percolating over time. It may take some time for them to find you, but eventually they will and you need to be prepared.
[21:40] Michael is telling people that focus on tax preparation work to begin looking for additional streams of income. Tax preparation was already commodified before Covid-19, and if it’s your only stream of revenue you need to expand your offerings now.
[22:50] Michael helps licensed professionals start a tax resolution business from scratch, or if they already have a business, how to grow it to the level they’ve been hoping to achieve. He teaches the whole business of tax resolution from generating leads to closing clients and delivering the service.
Mentioned in this episode:
Michael Rozbruch's Tax & Business Solutions Academy