Category: Get More Tax Clients

Big Mistakes Tax Pros Make – Not firing clients

June 20, 2023

Life is too short to not work with people you like. Why do you put up with crappy clients? There is nothing to say that you HAVE to work with them. (Yes, even if they are your mother, but that makes family gatherings awkward).

Please look at the questions below, and apply ALL of these questions to ALL of your clients. If you cannot say yes to 7 of the 9 (I could even argue that if they don’t meet all 9) questions below on each client, then they should not be your client. They are just not a good fit for you and would be a good fit for someone else. This is YOUR tax practice and YOU control it. Not your clients. Yes, you are in business to serve your clients, but you get to pick who you get to work with.

Do you like/enjoy working/talking with the client?
Do they pay your bills/invoices on time?
Do they not question your bills and pay them happily/willingly?
Do they listen to and implement your advice?
Do they respect your time and thank you for your advice?
Do they treat your staff in a friendly manner and with respect?
Do they provide you information timely?
Do you relish the opportunity to talk on the phone or reply to an email from this client?

So, you really should do this exercise on all of your clients. It is time to clear out the dead weight. You work crazy, ungodly hours for what? Just to be stepped on, used and abused?

Nonsense!

It is time to take your life back. It starts by not dealing with crappy clients. Oh, and give your staff input on this. They will appreciate having the input and will be just as relieved that they no longer have to deal with this crappy client.

I hope you find this email eye opening, empowering and potentially life changing. If you have any questions, comments or need someone to ask questions, please reply to this email.

Have a great day!

I received this comment from one tax pro recently and here is what she does..

“I agree 100% with you! I evaluate every October and clear out 10-15 clients that create stress and chaos. My other criteria is this: I have a bank of 10 file cabinets from Ikea. They are full of client binders. If there is a potential new client that

May 8, 2023

The IRS released in April 2023 the most recent version of the Form 656-B, Offer in Compromise Booklet. Tax professionals should always download and use the most current version of this form to avoid processing delays. The booklet also includes the forms taxpayers must complete as part of the OIC process and is now available in Spanish. Offers in compromise let taxpayers settle their tax debts for less than the full amount they owe once they’ve exhausted all other payment options. The IRS will consider each taxpayer’s unique set of facts and circumstances before accepting an OIC.

Share this IRS Tax Tip with clients that explains the OIC process in detail including how to:

Avoid paying an OIC application fee if a taxpayer qualifies as low-income (as defined by Form 656).
Confirm if a taxpayer is eligible to file an OIC and calculate a preliminary offer amount using the OIC Pre-Qualifier Tool.
File an offer and what information to gather for completing the various forms by watching a how-to OIC video playlist series that’s now also available in Spanish and Simplified Chinese.

If you have questions, please reach out to us!

Tax Professionals be aware of allowances for health care when dealing with IRS collections cases

February 18, 2023

IRS Collection Financial Standards – National Standards for Out-of-Pocket Health Care

Please note that the IRS Collection Financial Standards are designed for the purpose of calculating repayment of overdue taxes and are effective only for federal tax administration on and after April 25, 2022. For information regarding expenses related to bankruptcy calculations, kindly visit the website of the U.S. Trustee Program.

The allowable out-of-pocket costs for health care for 2023 is $75 for under age 65 and $153 for over age 65. It is important to note that the standard amounts may change, and thus, it is advisable to check back periodically to ensure that you have the latest version.

The table for health care expenses has been established based on data from the Medical Expenditure Panel Survey and is intended to provide minimum allowances for out-of-pocket health care expenses. These expenses include medical services, prescription drugs, and medical supplies (such as eyeglasses, contact lenses, etc.). This is most items that are bought as part of a prescription from a licensed health care professional. However, elective procedures such as plastic surgery or elective dental work are generally not allowed.

Taxpayers and their dependents are allowed the standard amount monthly on a per-person basis, without being questioned about the amounts they actually spend. In the event that the claimed amount is greater than the total allowed by the health care standards, the taxpayer must provide documentation to substantiate that the expenses are necessary living expenses. Generally, the number of individuals allowed should be the same as the number of dependents claimed on the taxpayer’s most recent year income tax return.

Furthermore, the out-of-pocket health care standard amount is allowed in addition to the amount taxpayers pay for health insurance.… Continue reading