https://TaxMarketingHQ.com - IRS Collections representation, aka "tax resolution", is the process of representing taxpayers with outstanding liabilities to the IRS. Many of these taxpayers also owe money to their state tax authorities. The majority of IRS tax debt, and the "bread and butter" of the industry, are small businesses that owe 941 payroll tax liabilities. While smaller, the 1040 tax debt market is still sizable. All told, over 13.3 million taxpayers (businesses and individuals) owe money to the government. This slide deck will show you the scope of the tax resolution market, the fastest direct response marketing methods to get there, walk you through the sales closing process, and show you how to quote fees.

1. Jassen Bowman, EA
TaxMarketingHQ.com

2. • Enrolled Agent specializing in IRS Collections
representation.
• Author of the Amazon bestseller “Tax Resolution
Secrets”, showing consumers how to address their tax
debt problems.
• Built boutique tax practice from $0 to $35,000 per
month in just 10 months.
• Founder of TaxMarketingHQ.com
• Consultant to dozens of highly successful tax resolution
practices, from solo practitioners to firms with 30+
employees.Jassen Bowman
TaxMarketingHQ.com

3. My Goal Today…
 You have to stop doing $10/hr
work, and do more $100, $250
and $500/hr work.
 This is the $250 - $500/hr work.
 Accomplished via proper
leverage of systems and staff.
I’m here to show you how to make more
money, without working more hours.

4. Objectives
1. Why YOU should add this profit center to
your practice.
2. Size of the IRS Collections market.
3. What the competition looks like.
4. How to attract tax resolution clients.
5. How to quote fees.
6. How to get started.

5. Marketing Smart
 Demographic analysis
 Getting better clients
 Resolving payment issues
 Marketing performance tracking
 CRM platform
 Direct response marketing through other media
 “That’ll never work in this business.”
 “People on the Internet aren’t looking to spend money.”
 Introduced the concept of lead follow up.

6. Massive Market Opportunity
Tremendous need for
competent
taxpayer representation.

7. IRS Collections Activity In 2014
 7.6 million new collections cases
 Closed 6.9 million collections cases
 12.4 million open collections cases at the
end of FY14
 Net increase of over 689,000 collections cases over FY13
 $130 billion in outstanding tax, penalties,
and interest
TaxMarketingHQ.com

8. More Collections Activity In 2014
 Over 3.5 million delinquent tax returns
 535,580 new tax liens filed
 This is decrease from 707,768 in 2012
 Decrease from 602,005 in 2013
 2012 threshold change from $5k to $10k
 Serial debtors will have smaller liens filed
 Nearly 2 million levies served on third parties
 27,000 Offers in Compromise accepted out of
68,000 applications
 Vast majority of rejected Offers were ineligible to begin with
TaxMarketingHQ.com

9. National Tax Resolution Firms
 $550 million annual industry… if not more.
 Based on sales data I’m privy to, my knowledge of different
company sizes, average ratios, etc.
 Only includes large, national firms, not local services
 Turn & burn mentality
 High sales pressure from unknowledgeable sales people
 FTC & State AG crackdowns
 American Tax Relief
 Roni Deutsch
 TaxMasters
 JK Harris
TaxMarketingHQ.com

10. Local, Unique Service
 You'll gain an edge in your market place for
being able to deliver a service NOT provided by
other practitioners.
 Extremely few CPA’s offer representation.
 98% of EA’s offer only tax preparation.
 Even tax attorneys rarely offer collections/audit
representation to their clients.
 Most collections representation is sold to tax debtors by
giant, out of state, hard-sell marketing companies.

11. Incredibly Lucrative Opportunity
 Average client fee: $3,500 to $5,000
 Solo practitioners: 4-6 new cases per month
 With 2-3 assistants: 20 cases per month
 $11,000 - $55,000 per month
 Ramp-up time: 60 days or less
 Higher fees with better niche targeting
 Power of being in person and local
TaxMarketingHQ.com

12. Opportunity
 Higher fees with better niche targeting
 2290 cases: $5,500 average fee
 Real estate investors: Unique cases, lower debts, higher fees
 Expats: Typically higher net worth clients
 Power of being in person and local
 You’re a tax professional, not a salesman
 Lifetime Customer Value
TaxMarketingHQ.com

13. Creating an IDEAL™ tax
practice starts with
attracting IDEAL™ clients.
TaxMarketingHQ.com

14. IDEAL™ Client Profile
Refer to the IDEAL™ Client Profile Exercise.
 What services do you offer them?
 What are their financial commonalities?
 Demographics
 Geographics
Compare current client profile to your
IDEAL™ Client Profile.
TaxMarketingHQ.com

15. Once you’ve identified who
your IDEAL™ clients are, you
need to get them in the door.
TaxMarketingHQ.com

16. Le’ Marketing
If your business purpose has anything to do with:
• Increasing revenue
• Growing your clientele
• Expanding your service offerings
• Expanding your geographical footprint
…then you’re not in the tax business.
TaxMarketingHQ.com

17. You’re in the
marketing
business.
TaxMarketingHQ.com

18. What is marketing?
“The process of planning and
executing the conception, pricing,
promotion and distribution of
ideas, goods and services to satisfy
customers.”
TaxMarketingHQ.com

19. “Planning & Executing”
1. Marketing is a process.
2. Marketing should be planned.
3. Marketing execution should be scheduled.
4. Think in terms of campaigns, not singular events.
5. Implement for results, not image branding.
6. Understand your market, message, and media.
7. When available, use what’s already been
demonstrated to work.
TaxMarketingHQ.com

20. OK, so how do I get clients?
 Existing clients
 Referrals from professional network
 Teach CPE in order to get referrals
 Put on local seminars
 Speak in front of niche groups
 Publish a monthly client/prospect newsletter
 PPC advertising on Google, Facebook, Twitter,
LinkedIn, Pinterest, etc.
 Retargeting ads to appear on major sites such as
NYT, Huff Post, etc.
 Publish a book
 2012-13: I averaged two+ fresh leads per week from
my “Tax Resolution Secrets” book on Amazon
 2014-15: Still average about 1 per month
 Write articles for publication
 Guest blogging
 Financial forums
 Local business journal column
 Email
 Direct lead generation
 Follow-up autoresponders
 Lead magnet delivery
 Local radio ads
 Post on Craigslist
 Bus bench ads
 Display ads in Tidbits, Coffee News, Local business
journal
 ValPak, MoneyMailer, EDDM
 Telemarketing
 Webinar invites
 Seminar invites
 Direct appointment setting
 Direct mail follow-up
 Voice Broadcast
 Fax Broadcast
 Direct mail
 New tax liens
 Aged tax liens
 Geographical SIC lists
 SMB shareholder-officers
 USM Dream 100
 Webinars
 This alone can fill your entire pipeline.

21. Tax Lien Marketing
 Fastest, most powerful direct response lead generation
tactic for rapidly establishing a tax resolution practice.
 Heavy competition…
 …but only for two weeks.
 National firms only go for the “low hanging fruit.”

22. Tax Lien Marketing
 Tip #1: Make contact through multiple channels.
 National firms are 95% telemarketing only.
 A few have basic, limited fax/email follow up.
 Very few ever even try direct mail, unless they work with
a marketing consultant.
 Use telemarketers as a follow up to other channels.

23. Tax Lien Marketing
 Tip #2: When using direct mail, always mail more
than once to the same tax lien.
 Numerous studies demonstrate that response rates on
the 5th through 8th mailing usually exceed the
cumulative response rates from mailings 1 through 4.
 My own testing indicates that as little as a three time
mailing, in sequence with IRS notices, increases overall
response rate by as much as 5x.

24. Tax Lien Marketing
 Tip #3: Make strong offers.
 The “free consultation” is no longer a sufficient response
offer – it’s a basic public expectation.
 Use response “widgets”:
 Special reports
 Webinars
 Live seminars
 Bonus Tip: Telemarketers to offer live seminars.

25. Tax Lien Marketing
 Tip #4: When a lead is generated, follow up forever.
 Not enough can be said about long term prospect follow
up.
 Prospects should be treated equally with clients, and
receive at bare minimum 24 “touches” per year from you
– preferably 50 or more.
 Most “touches” cost less than $1.

26. Tax Lien Marketing

27. Tax Lien Marketing

28. Tax Lien Marketing

29. Client Acquisition Cost Examples
My lawyer sez to tell ya’…
The following examples are for illustrative purposes only. Your
results may vary. In fact, they definitely will vary, based on
geographical factors, demographic factors, local competition,
media choices, and other factors completely beyond my control.
Past results are no guarantee of future returns. Consult with
your physician before beginning any exercise program.

30. Client Acquisition Cost Examples
 Telemarketing Only
 Average “opener” needs 60 liens to get an “interested”
contact on the phone.
 Average closer will close 1 in 11 transfers (9%).
 Average fee = $2,750
 Typical commissions = 30%, = $825
 Lien list cost: 660 liens x 35 cents = $231
 Total cost to acquire client: $1,056

31. Client Acquisition Cost Examples
 Direct Mail Letters
 2,000 niche targeted tax liens ($349)
 3-letter sequence in sync with IRS notice cycle
 6,000 letters mailed = $3,600
 2% response rate = 40 prospects
 Close 1 in 4 now, more later via follow up programs
 10 new clients
 Average fee = $2,750, so $27,500 in new client fees
 Total cost: $3,949
 Total cost to acquire client: $395

32. Client Acquisition Cost Examples
 Direct Mail Postcards + Telephone Contact
 2,000 niche targeted tax liens ($349)
 8-postcard sequence in sync with IRS notice cycle
 Telephone follow-up at least 1x to each lien
 16,000 pieces mailed = $6,720
 Assume conservative 6% total response rate = 120
prospects
 Close 1 in 4 now, more later via follow up programs
 30 new clients @ $2,750 each
 $82,500 in new client fees
 Total cost: $7,939 (including telemarketer @ $10/hr)
 Total cost to acquire client: $265

33. You’ve got leads. Now what?
TaxMarketingHQ.com

34. Don’t lose sight of the objective…
TaxMarketingHQ.com

35. Consultative Selling
Sales, just like
marketing, is a
process.
TaxMarketingHQ.com

36. Consultative Selling
It boils down to
needs analysis.
TaxMarketingHQ.com

37. Consultative Selling
1. Go through Case Review Worksheet.
2. Review notices.
3. Discuss source of taxpayer liability.
4. Segue into financial questions.
• Income/expense considerations.
• Asset considerations.
5. Proceed to Tax Resolution Sales Closing Checklist,
depending upon business model.
• Split sales model.
• Integrated sales model.
TaxMarketingHQ.com

38. Consultative Selling
This process
ultimately leads to
the fee quote.
TaxMarketingHQ.com

39. Fee Models
I vehemently believe that basing fees
solely on the lien amount is a
disturbingly unethical practice.
TaxMarketingHQ.com

40. Fee Models
 Hourly with retainer
 $150 to $300 per hour across country
 Flat Fee
 $1,500 to $5,000 common range
 Generally excludes tax preparation
 Generally does include appeals and levy release work
 Menu of Services (with or without
retainer)
 Levy Release - $400 to $1,200
 OIC Application - $500 to $3,500
 Lien Subordination - $500 - $1,500
 Representation - $1,000 - $5,000
TaxMarketingHQ.com

41. My Fee Model (in gory detail)
 $2450 minimum representation fee
 Most straightforward streamline IA cases will qualify for this.
 Non-streamline minimum: $2950
 Explicitly excludes preparation of unfiled returns.
 Explicitly excludes “reconstructive bookkeeping” required to prepare
returns, create 433, or meet RO demands for P&L, etc.
 Explicitly excludes levy release work.
 Comes in with levy: Add $500 to base fee, require 50% up front in certified funds.
 Future levy: Also $500
 Includes IL, FA, negotiations, Appeals, lien subordination, PA app, etc.
 If OIC eligible, generally add $500 to $1500, depending on situation.
 TFRP representation: $1500-$1950 per person
 Includes 1040 rep for that person if they have 1040 issue also.
 Add to base fee quote based on initial consultation to compensate for any
special circumstances, unusual situations, etc.
 Example: Truckers that will need me to intercede with factoring company.
 Add “personality surcharge” based on how difficult I perceive the client to be
to work with.
TaxMarketingHQ.com

42. After they say,
“Yes, help me
NOW!!!”…
TaxMarketingHQ.com

43. Guess what???
SURPRISE!
.………It’s a process!

47. Let’s take a deeper
look at one tiny
piece of client intake
and case work…
TaxMarketingHQ.com

48. Making Sure You Get Paid!
Never forget that you are working with
professional debtors.
TaxMarketingHQ.com

49. Making Sure You Get Paid
Don’t become just another creditor.
TaxMarketingHQ.com

50. Making Sure You Get Paid
 Enforce written payment policies.
 Example policies:
 XX% of fee up front in certified funds or credit card.
 Signed payment schedule with future dates and
amounts of fee payments.
 Require weekly or biweekly payments, not monthly.
 Stop ALL work upon bounced/rejected payment.
 For certain industries, you may want to always
require certified funds or payment in full, up front.
TaxMarketingHQ.com

51. What does this look like in practice?
 Four tax resolution cases per month brings you…
1) $132,000+ in annual representation fees
2) $25,000 to $50,000 in unfiled return prep
3) $12,000 to $20,000 in new annual tax prep fees
4) In four years, that’s nearly 200 recurring tax returns
from just representation clients
5) …plus their referrals
6) …plus insurance, wealth management, bookkeeping,
etc….

52. For additional
resources, visit:
TaxMarketingHQ.com