TaxCoach Briefs:    April 10, 2008

Volume 3, Number 15

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MARKETING MINUTE (EAL)
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NASHVILLE CATS

This weekend, I attended the "Bonus Day" of Dan Kennedy's SuperConference in Nashville. I realized very early that I had made a mistake not attending the entire 4-day conference, but still found Sunday's session on "Pricing, Power, and Profit" to be one of the most extraordinary presentations I've ever experienced.

Like you, I'm up to my Kleinrock's this week in tax returns. We'll be talking about this presentation much more in upcoming Briefs, as well as at our TaxCoach Spring Training 2008 this June. But I can't wait -- I've got to give you a couple of teasers now! So let me summarize some of the tantalizing stuff Kennedy presented. Watch the Briefs for more -- or even better, meet us in June and we'll apply it to your business!

By now you're familiar with the "Marketing Triangle," right?:

Well, Kennedy lavished attention and examples on all three areas. Here's just a sample:

OK, the 1040s are calling, so back to my salt mine for now. But keep your eyes peeled for more after the 15th! And until then, here are a few pricing questions to keep in mind:

(Still wondering who the Nashville Cats are? Ahh, youth. It's a song from 1967 by the Lovin' Spoonful. "I sure am glad I got a chance to say a word about (what I heard) in Nashville . . . ")

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BRIEFS UPDATE (EAL)
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WHY CLIENTS NEED YOU, PART DEUX

Last week, I summarized a story in New York magazine comparing three tax service providers: TurboTax, Block, and a "pricey" Manhattan CPA firm. The CPA "won," despite their higher price (see above!) -- in part because she found a better way to write off a guinea pig client's health insurance costs. Specifically, the article stated she did that "by writing off the difference between what the (clients) were deducting in health-insurance costs as a couple and what they should have been deducting for the self-employed (husband)."

Several of you wrote and called to question that strategy. Among the comments, one subscriber suggested the CPA should read Publication 502, which permits a deduction for self-employed health insurance only if it is taken out in the trade or business, and only if the self-employed individual is not eligible to participate in a spouse's employer plan. Another asked how he could file amended returns to claim premiums collected by his wife's employer!

I can't explain exactly how the profiled CPA arrived at her finding. However, Code Section 162 does permit a taxpayer to take a deduction for self-employed health insurance, even if they participate in their spouse's employer's plan, so long as the employer doesn't subsidize the self-employed taxpayer's premium. And Notice 2008-1, issued just this year (hence the clever designation as Notice 2008-1), states that a plan providing medical care coverage for a 2-percent shareholder-employee of an S corporation is considered "established by the S corporation" if: 1) the shareholder makes the premium payments; 2) the shareholder furnishes proof of those payments to the S corporation; and, 3) the corporation reimburses the shareholder for those premiums in the current taxable year.

Having said all that, my guess is that the self-employed individual is covered but not subsidized by his wife's plan -- thus allowing him to write off his (but not her) premium as an above-the-line deduction.

My clients sometimes complain that the tax laws are too complicated. I tell them that's a good thing, otherwise we would all have to make an honest living. Fortunately (for me, at least), most of them appreciate my odd sense of humor.

(It's always best to do business with people who get your jokes. I knew I should hire Ed when I first met him -- because he introduced himself as "Ed Lyon, I'm an attorney, but don't hate me, because I don't sue people." -- Keith)

We always appreciate hearing comments from readers. As often as not, it gives us more to talk about!

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TAXCOACH "SPRING TRAINING" (KAV)
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BRING YOUR ASSOCIATES!

As we mentioned last week, we've mailed invitations for the "TaxCoach Spring Training 2008" boot camp here in Cincinnati this coming June 20-22.

Spring Training is a first-ever opportunity to spend a full weekend networking with TaxCoach users from across the country, working on your business instead of in it.

The list of registrants is already sizeable. It includes a diverse mix of new and current subscribers, with both new and established practices, in tax, accounting, and financial planning. But hey, the more, the merrier!

Here are just a few of the topics we'll be presenting:

In the invitation we mention you can bring your spouse or associate for free. (Such a deal!) However we heard last week from a subscriber up in northern Ohio who wanted to bring two of his staff, in addition to his spouse. Especially since it's just a jaunt down I-75 for him this year. But, he was wondering if there were any breaks on the tuition for the extra folks.

What, breaks? TaxCoach's goal is to help you grow your business. Your business includes your associates. So at the risk of blowing our room size and the boot camp economics, Ed and I want to help you light the same fire under everyone in your business as the one that motivates you.

So we are holding the additional cost for associates in your firm to just $99 -- basically the cost of materials and lunches. (So don't drink too much at the welcome reception on Friday night!) If we lose our assets this year, well, then, guests will cost more next year. But for now -- bring 'em!

We've updated the invitation and the registration form with this new information. So if you want to bring additional guests, or if you aren't a subscriber or haven't received your invitation yet in the mail, you'll find all the info here:

TaxCoach Spring Training 2008

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SUBSCRIBER Q & A (KAV)
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Q: I wanted to start my own tax return business, does this give me all the information on how to deal with this? The site looked great by the way guys Im definitely excited.

A: Thanks for your interest and your kind feedback. TaxCoach isn't exactly the "business in a box" starter kit you're looking for, though. The system has a boatload of assistance with marketing, as well as the planner software itself, which will help you grow your practice by differentiating yourself from the non-proactive pack. And Ed's always happy to coach subscribers on approaching target markets, delivering services, ad copy review, etc..

TaxCoach is certainly as appropriate for a young practice as for an established one, and we have numerous subscribers who started with us very shortly after opening a new business. One of our All-Stars packed up and moved from Miami to Gainesville and started completely over, "live without a net". After just a few weeks, working with Ed, she had signed dozens of clients and was averaging one new one a day. But, we don't get into the actual mechanics of starting the tax business itself.

Hope that helps - we look forward to having you join us!

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We're happy to answer your questions on TaxCoach content, features, marketing, or general taxation. While we give first priority to our TaxCoach All-Stars, we work to answer all questions. For best response, email support@taxcoachsoftware.com. If we can't answer immediately, or we think the answer will be useful to all of our subscribers, we'll publish it (anonymously) here in the 'Subscriber Q & A' section of TaxCoach Briefs.

Regards,

Ed Lyon
Keith VandeStadt

www.taxcoachsoftware.com
(513) 321-2820

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