TaxCoach Briefs:    November 20, 2008

Volume 3, Number 46

TaxCoach Briefs archives.

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MARKETING MINUTE (EAL)
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LESSONS FROM THE PITTSBURGH STEELERS

Here in Cincinnati, we grow up celebrating bedrock midwestern values. Saluting the flag. Respecting the family. And hating the Pittsburgh Steelers. (In fact, the last time our beleaguered Cincinnati Bengals made the NFL playoffs, it was Pittsburgh defensive end Kimo Von Oelhoffen who blew out Bengals QB Carson Palmer's knee to end our season.)

I bring this up for two reasons. First, Keith and I just met with Nancy Stiller, Director of Member Resources for the Pittsburgh-based CPA Plus Network, who had the nerve to wear a Steelers jersey with receiver Hines Ward's number 86 to lunch. The restaurant host who seated us sniffed contemptuously at her as he exiled us to the farthest corner of the restaurant. (If you're not familiar with her organization, which brings tax and finance professionals together in regional peer-to-peer forums, click here to learn more -- even if you're not a CPA.)

And second, I've just finished reading a series of articles from the Pittsburgh Post-Gazette discussing Steelers Chairman Dan Rooney's efforts to buy out his four brothers for $128 million. Each. The family is reportedly working to present their proposal to the NFL's finance committee in time for the committee to send it on to the league's owners meeting scheduled for December 17 in Dallas.

Of course, there's a tax angle. (Why the heck else would I talk about it?) The Post-Gazette quotes one of Dan's brothers as stating in an email "it is very important to solve the problems before the end of the year because of taxes."

The negotiations -- especially news that the sellers want to close the deal before the new President takes office -- have generated a bit of controversy. Dan Rooney publicly supported Obama's campaign, and some now call him a hypocrite for helping expedite the sale. Of course, as the buyer, Dan's own taxes won't be affected anyway. (I have to wonder, though . . . would Obama's proposed $3,000 credit for new hires would apply to NFL draft picks? What about free agents?)

As it turns out, the main reason for the sale itself is to comply with NFL policy requiring each team to have one owner controlling 30% or more. And the deal will probably be financed through an installment sale, leaving his brothers to pay tax on future installments at potentially higher future rates.

Still, the rush to finalize the sale is another high-profile example of scrambling to make money before rates go up. It follows on the heels of the story we reported right after the election baseball agents attending the recent general managers meeting were considering asking for bigger signing bonuses to beat the tax hikes they expect next year.

We've talked at great length about using the election to promote the value of tax planning. And we see that message getting through, as record numbers of you are using the system. (Nearly 30% of you logged in the day after the election, and daily logins since then continue to beat the pre-election record every single day.)

The Obama materials are especially timely. But they aren't the only resources you can use to generate year-end planning engagements. Last year we introduced an "Ounce of Prevention" checklist. This piece mimics the check-box questionnaires you send out with year-end organizers, but goes out now to identify fourth-quarter planning opportunities before it's too late to act. You'll find it in the Playbook under "Gathering Client Data."

We've also seen many of you using the Summary Report to generate year-end planning fees and referrals. If you're not, here's how it works:

You can use this strategy to sell plans for fees. Or you can use those meetings as springboards for referrals. Either way, you'll establish yourself as a "go-to" resource for proactive planning and distinguish yourself from the vast bulk of tax preparers who merely record history. And that's what TaxCoach is all about!

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UPDATED CONTENT (EAL)
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AMT, ENERGY EFFICIENCY

We've updated the modules on alternative minimum tax (AMT) and energy efficiency to reflect changes made by the Emergency Economic Stabilization Act. Specifically, the AMT has been "patched" to raise exemptions to $69,950 for joint filers, $46,200 for single filers, and $34,975 for separate filers. The bill also extends several provisions of the Energy Policy Act of 2005 (establishing various credits for investments in energy-efficient property), in some cases through 2016. (That means future credits for technology that hasn't even been invented!)

We're beginning our annual update process and, as always, we will have the system updated for 2009 figures in before the first business day of the new year.

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NEW TOOL (EAL)
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WELCOME KIT

Keith and I are finishing up a new TaxCoach Welcome Kit, which will include a printed Marketing Guide, audio CD, and several more marketing resources to get you started with TaxCoach.

As the name implies, we're putting it together to welcome new members to the system. However, we think it will be so valuable that we'll be sending it to all current subscribers.

So make sure we have your correct mailing address in the system. (If you're not sure we have your current address, you can check it on the Planner Info screen.) This will ensure you get the Welcome Kit as soon as possible, along with the monthly mailed TaxCoach Lineup.

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MEMBER Q & A (KAV)
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Q: I'm looking for a marketing letter to send to my clients to get them ready for this new tax season. Is there one available for us to use? Also, do you have anything that I can send out to prospecting clients?

A: Take a look in the Playbook, under the heading Sample Letters in Microsoft Word. There are a wealth of sample pieces there with language to get you started. You'll find letters introducing proactive tax planning services to both clients and prospects.

You can also use the Client Alerts feature, which has very similar letters as those last two, and will build a merge file of letters to all of the clients you've set up in TaxCoach, ready to print on your letterhead.

As for getting them ready for tax season, that is what the Tax Outlook Letter is intended to do. As you've seen in the Briefs, we've updated the text for looking ahead to 2009, and included the impact of Obama's proposed tax hikes. That's on the Reports screen, and the letter's content depends on the details for the client that is active at the time.

For general marketing advice and strategies, check out the Marketing Guide in the Playbook, and related tools under the How to Sell TaxCoach heading.

Finally, if you haven't had your consultation with Ed Lyon yet, you can use that time to discuss your business and goals with Ed and define how best to price, promote, and deliver tax planning services to build your specific practice. You'll find the consultation questionnaire in the Playbook -- just fax it to us at 513/297-0787 and Catherine will call you to schedule a time.

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We're happy to answer your questions on TaxCoach content, features, or marketing. While we give first priority to our All-Star and Hall of Fame members, we work to answer all questions. For best response, email support@taxcoachsoftware.com. If we think the answer will be useful to all of our members, we'll publish it (anonymously) here in the 'Member Q & A' section of TaxCoach Briefs.

Regards,

Ed Lyon
Keith VandeStadt
www.taxcoachsoftware.com
(513) 321-2820

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