Dan Henn CPA
Dan Henn CPA

Tax Pros – Fire that bad client – Here is what he/she looks like!

It’s time we had a heart-to-heart about those clients who make our lives miserable. You know the ones – they’re always late with their paperwork, they argue about every deduction, whine about our fees and they think we’re their personal servants. Well, I’m here to tell you that it’s time to cut them loose! Here are seven reasons why firing your worst clients is the best decision you’ll ever make.

1) They’re always late. These clients are the ones who show up on April 14th with a shoebox full of receipts and expect you to work miracles. They don’t respect your time or your expertise, and they’re always surprised when you can’t get their taxes done in 24 hours. It’s time to show them the door!

You can’t train these people. If you could, it is not worth your time. It was the best decision I ever made to fire the bulk of the people who did this to me year in and year out. It actually made the next tax season the best I ever had.

2) They’re never satisfied. No matter how hard you work or how many deductions you find, these clients are never happy. They always want more, and they’re never willing to pay for the extra time and effort you put in. It’s a losing battle, and it’s time to wave the white flag.

These are the “Got a minute” people. Because you don’t want to offend them, you take their call (even though you knew you shouldn’t have) and 45 minutes to an hour later, you finally get to answer their question. Then YOU feel guilty about sending them a bill. Your time is valuable (and limited), don’t let people take advantage of you and waste your valuable time. Did you ever think that you could have used that time to get work done, that you get paid for and maybe gone home on time and done something you enjoyed?

3) They’re rude and disrespectful. These clients treat you like their personal servant, and they have no problem letting you know when they’re not happy. They yell, they curse, and they make your life miserable. You don’t need that kind of negativity in your life!

Not only do they do this to you, they do it to your staff. Then you wonder why Sally or Joe left. You never thought it was because of the rude client and that … Continue reading

2024 IRS Collection Financial Standards released today (4/22/24)

The IRS Collection Financial Standards outline the average living expenses for individuals and families across the nation, covering essential categories such as food, clothing, housing, healthcare and transportation. As tax professionals, it’s our duty to ensure that our clients are accurately represented when negotiating with the IRS. By using these standards, we can help our clients achieve a fair and manageable resolution to their tax troubles. In most cases.

Now, here’s an important update that you won’t want to miss. The IRS has just released new Collection Financial Standards today (April 22nd, 2024), reflecting the current economic conditions, inflation and cost of living. This means that it’s time to roll up our sleeves and update the financials of our current client cases with the new numbers. Failing to do so could result in inaccurate assessments and potentially unfavorable outcomes for our clients.

When applying the IRS Collection Financial Standards, it’s essential to thoroughly review your clients’ financial situations. Take into account their income, expenses, and any unique circumstances that may affect their ability to pay. By subtracting the standard living expenses from their income, you can determine the amount that the IRS expects them to allocate towards their tax debts. This information is crucial when negotiating installment agreements, offers in compromise, or other resolution options.

As licensed tax professionals, it’s our responsibility to stay up-to-date with the latest IRS regulations and guidelines. The release of the new Collection Financial Standards serves as a reminder of the ever-changing landscape of tax resolution. By incorporating these updated standards into our practice, we can provide our clients with the most accurate and effective representation possible.

So, let’s embrace the challenge and use our expertise to navigate the complex world of IRS collections. With the new Collection Financial Standards in hand, we can help our clients find a path towards resolving their tax issues while ensuring that their basic living expenses are met. Together, we can make a difference in the lives of those we serve and demonstrate the value of having a knowledgeable and dedicated tax professional in their corner.

We will be updating our CFS Quick Reference Guide shortly. Check your email for how to access it.

Warmly,

Dan

Want to get some great education! Then click here to find out more about the Tax Rep Defender Odyssey 2024

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Dan Henn, CPA, CTR™
Managing Member
Tax Pro Academy, LLC

P.S. Want to learn more about the Tax … Continue reading

By adding IRS Representation (Exam and Collections) to your service offerings, you can achieve all of these goals and more.

As a licensed tax professional, you’ve already built a strong foundation by providing expert tax preparation, bookkeeping, payroll and/or planning services to your clients. But what if I told you that there’s an untapped opportunity to grow your practice, increase your revenue, and strengthen your client relationships?

By adding IRS Representation (Exam and Collections) to your service offerings, you can achieve all of these goals and more.

First, let’s address a common concern: you might be worried about the time and resources required to expand your services. However, the truth is that offering IRS Representation can be a seamless addition to your practice. With the right training and support, you can quickly acquire the knowledge and skills needed to effectively represent your clients before the IRS. It is not as time consuming as you think and you can earn CPE credit while you learn.

Now, you might be wondering, “What’s in it for my clients?” The answer is simple: peace of mind. When your clients face an IRS audit or collection issue, they experience significant stress and anxiety. By offering IRS Representation, you can step in as their trusted advocate, guiding them through the process and ensuring their rights are protected. This level of support strengthens your client relationships and positions you as their go-to resource for all tax-related matters.

Did you know that clients actually perceive IRS Representation as a much more valuable service than tax prep? Why, the tax return is the necessary evil, it has to be done, but with representation, they have to directly deal with the IRS. For many taxpayers that leaves them feeling scared, mad, upset and fearful of the boogeyman IRS.

Moreover, adding IRS Representation to your practice can lead to substantial financial benefits. Did you know that the average fee for representing a client in an IRS audit ranges from $2,500 on up? And for collection cases, fees can easily exceed $1,500-3,000 or more. This doesn’t even include the premium fees you can charge for unfiled tax returns, which happens often.

These additional revenue streams can significantly boost your bottom line, allowing you to grow your practice and invest in your future.

But the benefits don’t stop there. By expanding your services, you’ll also differentiate yourself from competitors who only offer basic tax preparation. This unique selling proposition attracts new clients who are seeking a comprehensive, one-stop-shop for all their tax needs. Additionally, existing clients … Continue reading