Guess who doesn’t pay estimated taxes?

There are probably about a dozen things related to tax resolution that I’m constantly beating the drum about.

Droning on incessantly.

Repeating myself to infinity (and beyond!).

One of those things that I haven’t shut up about since I started teaching tax resolution marketing strategies to tax professionals back in the dark ages (2012) is that your marketing should:

a). Be heavily niched.
b). Choose a niche with a high percentage of people with tax problems.

In other words, if you’re going to focus on tax problem resolution, then it just makes sense to focus your marketing efforts on those industries, professions, and populations with a greater propensity to owe money to the IRS (and state).

Fortunately, it’s a pretty short list of professions and industries that make up the bulk of tax debtors.

Near the top of the pyramid, for 1040 tax debtors? Real estate agents.

Why? The facts:

  • 89% of real estate agents are independent contractors with their brokerages.
  • The average agent only does 11 transactions per year (according to NAR), and they’re heavily clustered in the spring and summer.
  • Due to lumpy income, these agents live commission check to commission check, and many of them fail to set aside monies for their Uncle Sam.
  • Thus, they don’t pay estimateds, thus they accrue liabilities in disproportionate numbers compared to the general population — even compared to other self-employed people.

That’s why working with real estate agents is one of the best places to start in your tax resolution marketing journey.

How do you market to real estate agents?

Easy, peasy.

  • Speak at brokerage sales meetings.
  • Present to property management groups.
  • Join your local Board of Realtors for networking and promotional opportunities.
  • Send direct mail to real estate agents.
  • Cold email works, too, once you get the list from the local Board.

…and a few other things.

How do you do these things?

I’m glad you asked.

Your new best friend when it comes to connecting with real estate agents is one of my best friends: Mr. Daniel Henn, CPA. He’s been kind enough to package up a large collection of marketing resources that will get you going in no time, into a big toolkit we call the Real Estate Tax Pro Toolkit. We’re clearly much more aligned with helping you create amazing results than we are in creatively naming products, but I digress.

As his holiday gift to you, … Continue reading

Six Financial Best Practices for Year-End 2020

By any measure, 2020 has been an interesting year. Tens of millions of Americans have faced unemployment, and millions of small businesses have had to scale back operations, or even worse, close permanently. And right when things start to feel like they’ll return to normal, something else happens.

Thankfully, with multiple COVID-19 vaccines in the works, there’s hope the load will lighten in the new year, which is fast approaching. While we prepare for a fresh start, here are six financial best practices for year-end 2020 and beyond, none of which require any heavy lifting.

  1. Give as you’re able, get a little back. What the 2017 Tax Cuts and Jobs Act (TCJA) took from charitable giving, this year’s CARES Act partially gave back – at least for 2020.
  • A $300 “Gift”: Under the TCJA, it became much harder to realize itemized tax deductions beyond what the increased standard deductions already allow. But this year, the CARES Act lets you donate up to $300 to a qualified charity, and deduct it “above the line.” In other words, even if you’re taking a standard deduction, you can give a little extra, and receive an extra tax break back, without having to itemize your deductions.
  • Giving Large: If you are itemizing deductions, the CARES Act also temporarily suspends the usual “60% of your AGI” limit on qualified cash contributions. The exception does NOT apply to Donor Advised Fund contributions, and has a few other restrictions. But if you’ve already been thinking about making a large donation to a favorite charity, 2020 might be an especially good year to do so – for all concerned.
  1. Revisit life’s risks. As the pandemic reminded us, life is full of surprises. That’s why it’s imperative to build wealth, and protect it against the inevitable unexpected. Is your current coverage still well-aligned with your potentially altered lifestyle? Perhaps you’re driving less, with lower coverage requirements. Or new health or career risks now warrant stronger disability insurance. Might it be time to consider long-term care or umbrella coverage? Bottom line, there’s no time like the present to prepare for your future greatest risks. 
  1. Leverage lower tax rates. While it’s never a sure bet, Federal income tax rates seem more likely to rise than fall over the next little while. Even before this year’s massive relief spending, the TCJA’s reduced individual income tax rates were set to expire after 2025, reverting to their prior, higher
… Continue reading

Expand Your Practice by Becoming a Certified Taxpayer Representative™

Until recently, it has been difficult for tax professionals to enter into the tax resolution world. Many have been put off by the idea of having to learn a completely new area of practice and procedure, let alone having to delve into the gory morass of the Internal Revenue Manual. However, new training options have put tax resolution certification within reach of more  tax professionals. This means that there are more ways to expand your practice.

What Is a Tax Resolution Specialist?

A tax resolution specialist is someone who helps people resolve any open debt that they may owe to the IRS. Along with tax resolution specialists, those who receive this type of training are also referred to as:

• Taxpayer representatives
• Tax relief specialists
• Tax controversy professionals
• Tax problem recovery experts

More tax professionals are starting to offer tax resolution services. If you decide to expand into tax assistance, it will give you a way to increase your income, as these cases tend to pay well. They also give you greater flexibility in how you run your business. This makes it a service that you can offer your clients year-round, giving you a way to earn a steady income instead of focusing on making most of your income when tax season rolls around.

Tax Resolution Services

Tax resolution training includes teaching you how to deal with tax issues such as:

• Examination representation
• Offers in Compromise
• Liens and levies
• Installment Agreements
• Innocent and injured spouse relief
• Penalty abatements
• Trust Fund Recovery Penalties

…and, of course, the proverbial “much, much more!”

Examination Representation

If you decide to offer examination representation services, then you’ll be standing in for a client during a tax audit performed by state officials or the IRS.

Offers in Compromise

During your taxpayer representation program, you’ll learn how to submit an offer in compromise to the IRS when it is appropriate to do so. This is the area of the tax law that allows your clients to settle their tax debt for a lower amount than what is owed. During your training course, you’ll learn when this is the best option for your clients, who qualifies, and how to get the best possible “deal” for your client.

Liens and Levies

When one of your clients owes unpaid taxes, the IRS may issue a levy. This will allow the agency to seize your client’s … Continue reading