TaxCoach Briefs:    January 14, 2010

Volume 5, Number 2

TaxCoach Briefs archives.

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MARKETING MINUTE (EAL)
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YOUR #1 JOB THIS "SEASON"

Here at TaxCoach, Keith and I stress how important it is for you to communicate with your clients. In fact, We often tell ourselves that these Briefs are the best thing we've ever done. That's because they give us a reason to contact you every week. Even those of you who aren't ready to join TaxCoach the first time you visit our site can sign up for valuable weekly marketing concepts and strategies. We email to thousands of you each week, knowing exactly how many of you will ultimately join. And there's real value in just having that list.

Most of you maintain at least a rudimentary client email list. And of course you have your client's physical addresses too. But how many of you are really making the most of your list? How many of you are using that list to remind your clients of the value you deliver? How many of you are using it to keep your name in front of them all year long?

Last year, the IRS threw some roadblocks in the way of using client information to stay in touch throughout the year. That roadblock took the form of new regulations under Section 7216 rules governing use of "tax preparation information" for contacting clients about non-tax prep matters.

Those rules, which became effective just over a year ago, may be a laudable attempt to protect client information, much as the Health Insurance Portability and Accountability Act ("HIPAA") regulations govern use and disclosure of personal health information. However, they mean asking clients to sign very specifically worded and formatted forms to use their information for ongoing communication and marketing, and as originally worded may actually prevent communications that may be intended solely to help existing clients from reaching them.

Early this year, however, the IRS released two rulings that ease the scope of the regulations. Keith and I were pleased that the new interptetations explicitly authorize us to distribute the weekly emails that have become the most popular component of our Press Club service. However, the core protections and prohibitions still apply.

Last year, we analyzed those rules and offered sample forms to gather those consents. You'll find those forms in the Playbook within TaxCoach, under "Gathering Client Data." Many tax-prep packages also offer similar forms for this purpose.

Section 301.7216-2(n) lets you "compile and maintain a separate list containing solely the names, addresses, email addresses, and phone numbers" of your clients to offer tax information or additional tax return preparation services. However, if you use an outside company to coordinate or administer the mailing (like, say, TaxCoach), this is considered disclosure requiring consent.

But there's an easier way to turn client contact information into marketing gold without jumping through the worst of the new hoops. Section 301.7216-1(b)(3)(C) provide that the new rules don't apply to "the disclosure or use by a tax return preparer of information which is identical to any tax return information which has been furnished to him if such identical information was obtained otherwise than in connection with the preparation of, or providing auxiliary services in connection with the preparation of, a tax return." That little gem of a loophole lets you use your clients' contact information to communicate with them throughout the year if you collect it separately for the specific purpose of staying in touch.

We've prepared a customizeable postcard you can use for just that purpose. (You'll find it alongside the more comprehensive consent and disclosure forms in the Playbook, under "Gathering Client Data.") Once your clients fill out the card, their information falls under the "identical information" rules. And now, as "the season" begins, is the ideal time to present them to clients to start (or finish) building that list! Why not ask clients to complete the card while they're in the office at tax time -- they'll be glad to know you'll be keeping them informed throughout the year.

Oh, and once you have that information -- use it! Client lists grow stale if you just let them sit around like that Christmas fruitcake you still haven't opened.

We recommend you mail clients a printed newsletter every month. When we say "monthly," we mean "monthly" -- not "quarterly, or "whenever you get around to it." When we say "mailed," we mean "mailed," not emailed -- nothing replaces the impact of a tangible document in the client's hands.

We also recommend you email them something at least weekly. (Yes, when we say "weekly," we mean "weekly.")

That's 64 "touches" a year. 64 touches may sound like a lot. But it's 64 chances for clients to remember how valuable you are the them (so they never leave). And it's 64 times for them to consider how valuable you can be to their friends, family, and colleagues (aka "referrals").

Yes, it costs a few bucks per client. But it's a whole lot less expensive then replacing clients who leave feeling neglected. That's especially important in today's lousy economy. And it really pays off with those referrals. If you're like most TaxCoach members, referrals are your biggest source of new business. So why not harness every opportunity to generate them?

Your client list really is marketing gold -- if you treat it that way. That means creating a useable list should be your #1 job this "season."

 

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MEMBER TESTIMONIAL OF THE WEEK (KAV)
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Here's another comment Dominique received from a Certified Tax Coach™ member who had completed the training. In Robert's case he studied the on-line training, rather than attending a 3-day Academy in San Diego.

"I'm very happy with the selling and pricing techniques that I learned in the online CTC training, and can't wait to attend the live class. It gave me the confidence and the system that I was lacking before, and I was able to close 4 tax planning clients literally the day after I completed my training. I closed 2 additional tax planning clients later that same week. These prospects were all in my pipeline before I attended the training, but I was on their waiting list. Now they are on mine!

I have also been able to charge them higher fees than I had previously quoted to them, and they have all accepted without a haggle. Thanks so much for all of your help, I really do appreciate it."

Robert Gambardella, CPA, CTC™,
Concierge Tax Service, LLC
Shelton, CT

 

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DID YOU KNOW . . . (KAV)
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TAX OUTLOOK LETTER

. . . that TaxCoach has a "Tax Outlook Letter" that is specific to each client? The Outlook Letter is designed to give the client an overview of tax law changes and planning opportunities for the current year that relate directly to his or her situation.

You'll find the Tax Outlook Letter as the third orange "action" button on the Reports screen within TaxCoach. Like the tax planning detail and summary reports, the Outlook Letter's contents depend on the strategy modules selected for the client.

The Outlook Letter is ready to print directly on your stationery and mail to your client. Or, hand it out along with the completed tax return during the season, as an entree to an off-season planning engagement or update. Just as with the Summary Report, you can tell the client "Here are some things to consider that might impact your tax position this year. I'll give you a call after tax season and we can discuss next steps."

They'll appreciate the attention, and you'll appreciate the stronger relationship and higher value as their "trusted advisor."

 

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MEMBER RESOURCE (KAV)
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MEMBER CALL-IN WITH ED AND KEITH

We had another good call-in this week, with interesting discussions on, among other things, direct mail marketing, practice aids and document management tools, and even a shout out to the Alabama Crimson Tide on winning the BCS national championship last week. [ Of course we had that on Tuesday's All-Stars monthly webinar, too. Oh, wait — that was the same caller! ]

If you're looking for clarification on tax strategies or profiting from TaxCoach too, join us for the next call, on Wednesday January 20, at 1pm Eastern. Enter a question or just listen in on the repartee. Check the "Contact Us" button within TaxCoach for registration instructions.

Here's an excerpt of questions and comments raised by callers this week, straight from the call log:

While we are happy to answer questions on TaxCoach marketing, concepts, and strategies, we can no longer continue to analyze detailed case studies. Specific client scenarios generally involve detailed factors outside our knowledge, and we have determined (along with our attorneys at Crane, Poole, and Schmidt) that we aren't comfortable addressing those scenarios. Unfortunately, we're just not set up to act as an "on the fly" research service. (If you're looking for that sort of support, take a look at the Certified Tax Coach™ program.)

Members occasionally ask if we can record and archive these calls. The answer is that we want to keep them as informal and uninhibited as possible. For example, we’ve discussed outside tax software and marketing services (both good and not-so-good), and we don’t want to put ourselves on record with those comments. Member Call-Ins are intended to be casual discussions among peers – and we don’t want recording them to threaten that chemistry.

While our elite members (All-Stars, Press Club, and Hall of Fame) can still schedule time directly with Ed as part of their coaching programs, we simply cannot answer marketing and tax-strategy questions via email or unscheduled calls.

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We can answer questions on using TaxCoach system features anytime. (Save marketing and tax strategy questions for Member Call-Ins.) 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
http://www.taxcoachsoftware.com/
(513) 321-2820

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