Category: Get More Tax Clients

Pitbull vs Canopy: Battle of the Tax Resolution Software Titans

“Should I use Pitbull or Canopy?”

“What’s the best tax resolution software?”

…and other variations on this same question have become the #1 thing I get asked on the “Ask Me Anything” webinars that I occasionally host.

Note: This is an old review, published in 2019. Unfortunately, I can no longer recommend Canopy. See my current recommendation here.

Since it’s a question that inevitably turns into a 15-20 minute conversation about features, pricing, and user interfaces, I’ve decided to create this page to have a place to send all the folks that ask the question. So if I sent you here because you asked the question, please don’t be offended — I’ve simply gotten tired of repeating myself over and over and over and…

To cut straight to the chase…

1). There are only four full-service tax resolution software programs that I’m aware of. One of them is really old and archaic, one of them is too new and behind the 8-ball. That leaves Pitbull and Canopy. 2021 Update: Sometimes, the new kid on the block takes a few years to grow up into something amazing. Such is the case with the software I was dismissing when I first wrote this post in 2019. Check ’em out.

2). What about Audit Detective from Tax Help Software? Yes, it’s a great tool — I used it myself when I was in practice. If you want a stand-alone transcript analysis tool without all the other features of a full-service tax resolution software package, then by all means get Audit Detective and don’t even bother looking elsewhere. But if you want a full package suite, that’s not what they do. 2021 Update: The THS transcript report has been eclipsed! <gasp!> Yes, indeed! For my new recommendation for full featured tax resolution software, read this review.

3). Don’t be a cheapskate on this. The price difference between Pitbull and Canopy is insignificant. Both platforms offer the exact same core features, such as client portal, document management, 433 questionnaire, resolution options determination, etc. They both offer additional features for additional fees. How they break out those features and fees is very different. For example, transcript service is included at no cost with Canopy, but Pitbull charges an extra $250/yr for it. They also both charge extra for practice management features, such as time tracking, billing, payment processing, etc. With Pitbull, you’re going to be in … Continue reading

If they’re broke, how can a tax resolution client afford my fee?

This is the inevitable question.

On every webinar, every Tax Resolution Fast Start Boot Camp, every open Q&A call, and via numerous emails, this is the #1 most frequently asked question in the tax resolution universe.

As such, I figure it’s about high time that I write out a formal response that I can refer folks to in the future.

So if you sent me an email or otherwise posed this question, and I sent you here, welcome, and know that you are not alone. 🙂

First, I’ll give you the short answer: People find the money to pay for what’s important to them.

Here in the United States, the wealthiest nation in human history, there is no shortage of money. Money is literally everywhere. Compared to most other countries, and most other times in history, money is also relatively easy to get.

“Pfttt!” I hear some readers saying. But statistically speaking, it’s true. Here in America, even our lowest income earners make more money in a year than billions of people around the world make in 5 or 10 years.

But money here doesn’t just come from earned income. We also have one of the greatest credit facilities in the world (be that for good or bad). Many people (not everybody, but most), can tap into credit almost at will, and many people do exactly that in order to obtain the money to pay for what matters most to them.

Starting to make sense?

What you’ll find when you start doing tax resolution work is a very simple truth: People had the money to pay their taxes, they simply chose to do something else with the money instead. This is where tax debts come from in the first place.

Many times, people are using their tax money to support a lifestyle that is more grandiose than they should be. This applies equally across the socioeconomic spectrum, by the way. People making $25,000 per year can wind up with a tax debt just as easily as people making $250,000 per year.

So, the money is flowing through them, they’re just not doing with it what they’re supposed to be doing with it (in the eyes of the IRS, that is).

By the way, if you don’t believe me in regards to this matter, I’d encourage you to take the Trailer Park Challenge. This challenge doesn’t involve a bucket of ice water or … Continue reading

941 Marketing Challenge Day 2

At yesterday’s IRS-sponsored “Working Together” symposium in Seattle, the Tacoma Collections Group Manager presented material that was put together by Thomas Kramer, the IRS Collection Territory Manager for the area. In that presentation, two fascinating facts were presented that are relevant to our current line of thinking:

  • As of March 31, 2018, there were $60.3 billion in 941 balance dues, not including penalties and interest.
  • Year to date, 59% of cases that Revenue Officers resolve are business cases.

See why we’re doing this marketing challenge?

Today is pretty simple, and quite honestly should only take you 10-20 minutes, assuming you did yesterday’s exercise.

Here it is, nice and simple: Open up your telephone directory, and call FIVE (or as many as exist, if less than five) local, mom and pop payroll service providers.

Yes, payroll service providers. Small, local ones.

Look ’em up. Call them, say your elevator pitch, and tell them you’d like to discuss a referral relationship. They send you leads, you send them leads.

“Whoa, whoa, hang on a second, Jassen. If a business has a payroll provider, they don’t have a 941 problem!”

That’s what you’d think, right? Well, not so fast.

See, many small businesses with 941 debts did, at one point, have all their ducks in a row. Then, something happened. Maybe it was a loss of a big contract, a death in the family, a regulatory change, etc. All kinds of things happen that turn profitable businesses into clunkers overnight.

So, payroll service companies see this. Because one day, the total payroll + taxes debit doesn’t go through when the payroll service provider tries to run payroll. In fact, they are the first ones to see it. And maybe 1 in 200 of these kinds of payroll providers offers resolution services. So, this is your chance to build referral relationships with one type of non-competing service provider that you can help them, and they can help you.

Tomorrow, we’ll discuss how to take this little tactic to the next level. But for now, go call some small payroll providers, and get the conversation going, elevator pitch in hand.… Continue reading