Client Intake: What to do & when after a new Collection representation client hires you

Step 1:  Marketing
Step 2:  ?
Step 3: Profit!

See, it’s sooo easy to build a profitable tax firm!

Of course, the devil is in the details.

For IRS Collection cases, there are a bunch of steps that need to be taken after a client hires you. The bulk of the work you do for the client is “front loaded” in the first two weeks. The generic progression of a tax resolution case looks like this:

1. Tax module research
2. Client financial analysis
3. Determine resolution options
4. Negotiate with the IRS
5. Go to Appeals (if necessary)
6. Seek penalty abatement (if applicable)
7. Withdraw or offer POA Monitoring

Those first three steps — that’s the bulk of the two weeks I just mentioned. But even those three steps can themselves be broken down into dozens of additional steps.

Collectively, I label this early part of a Collection engagement as the “Client Intake” phase. It includes everything from filing your 2848 with the CAF unit to verifying client contact info in your CRM system to making sure you get paid to requesting a Collection hold from the Service to requesting a Form 9297 from the Revenue Officer — and much, much more.

If you’re interested in getting into the weeds on these nitty-gritty details of client intake and early resolution steps, you’re invited to join me this coming Friday for a 2-hour CE/CPE webinar on this topic. When you attend, you’ll receive copies of my actual checklists for getting this all done and making sure I never missed an important step.

This class is CTR-104 in our ongoing CTR™ curriculum. Tax Resolution Academy® members can register for this class from the “Events” calendar inside the online community. But if you’re not an Academy member, you can still attend this individual class. Go here to register:

Here’s to efficiency via checklists,
~Jassen Bowman, EA, CTR™… Continue reading

Daily CPE webinars for week of Jun 29 – Jul 3 2020

Next week, we’ll be doing daily webinars, including some much-requested topics. All sessions will start at 10am PDT (1pm EDT) and run for a full two hours.

Click on the session title below for complete course details and to register.

Monday: Intro to IRS Collections, Enhanced Edition
Tuesday: Pre-Resolution Case Actions
Wednesday: Ethics! The Musical
Thursday: CPE by IRS – People First Initiative
Friday: Introduction to 941 Collections ResolutionContinue reading

What your tax resolution clients need to know about Economic Injury Disaster Loans

With the implementation of a significant IT upgrade two weeks ago, the Small Business Administration (SBA) has suddenly gone from processing just 900 disaster loan applications per day, to over 10,000 per day. Given the fact that millions of small businesses have applied for these loans and are desperately in need of these funds in order to simply stay in existence during the COVID-19 recession, this will be welcome news for these small businesses.

However, these loans come with a LOT of strings attached. As their professional advisor, it behooves you to have an understanding of these loan conditions, some of which are quite draconian. This will help you to help your clients make a wise decision about accepting this loan or not, and if they do, how to properly utilize the funds.

This should probably be a CPE webinar, but due to other projects I’m working on this week, this blog post will need to suffice.

There are three main things that I want you, as a tax professional, to be aware of on behalf of your clients in relation to the Economic Injury Disaster Loans:

  1. The terms of the loan agreement.
  2. Restrictions on use of proceeds.
  3. The realization that this may be a once in a lifetime opportunity to “refinance” IRS tax debt into a 30 year, fixed rate loan at 3.75%.

Let’s briefly address each of these items.


EIDL Loan Terms and Conditions

SBA Form 1391 is the loan agreement for an Economic Injury Disaster Loan, and spells out the terms and conditions of the loan. Their are two very important things to understand about this loan agreement.

First, on loans in excess of $25,000, the SBA will secure their loan position with a general lien against all the business’ assets. This collateral for the loan is secured by use of a UCC-1, which will be filed in the county in which the business is located. The SBA deducts a $100 fee from the loan proceeds in order to cover the preparation and filing of the UCC-1. When I say that this lien covers all assets, I do mean all. It operates very similarly to a federal tax lien, and covers all property, rights to property, and property that may be acquired in the future. Heck, it even includes intangible intellectual property that the business may create in the future. It’s a very broad lien.

This may make it very difficult … Continue reading