checklists for tax resolution sales

includes consultation questions.

by jassen bowman
tax resolution systems

after marketing, your next most important job is sales. sales and marketing are intimately connected, because the leads you generate and nurture through marketing become the prospects you sell to in the sales process.

more on tax resolution: quoting tax resolution fees | basics of tax season work flow | when to follow up on prospects | checklists for new lead generation |client management checklists for tax resolution | how to handle client complaints | case study: building a tax resolution business | marketing requires ruthless accountability
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most tax professionals dislike the idea of seeing themselves as salespeople. however, you need to accept the fact that if you can’t close a sale, you’re going to be broke, no regardless of your statewide high score on the cpa exam, regardless of the prestigious law school you went to, regardless of any other certifications you’ve earned. if you don’t sell, you don’t eat.

the tax resolution sales checklist picks up where the marketing systems leave off: somebody with a tax debt has scheduled a consultation, either over the phone or in person. let’s start from the moment they show up.

complete the following:

  • pre-consultation checklist
  • prospect arrival checklist
  • tax resolution consultation checklist
  • tax resolution sales closing checklist – either integrated or split sales model
  • post-consultation checklist

pre-consultation checklist

once a prospect has scheduled a consultation, use the following checklist to prepare for that consultation:

  • add/update prospect contact information in crm system.
  • when prospect calls to schedule consultation, receptionist should ask the prospect how they heard of your firm and make note of this in crm.
  • change prospect status in crm system to “consultation.”
  • prepare and print form 8821 with prospect information.
  • prepare and print form 2848 with prospect information.
  • prepare and print engagement letter with prospect information.
  • prepare and print cover letter with prospect information.
  • place all printouts in prospect folder and file in consultation tickler.

prospect arrival checklist (in-person consultations)

  • ensure that prospect is politely welcomed by staff, regardless of other office activity.
  • prospect’s coat/hat are offered to be placed on coat rack.
  • prospect is offered a seasonal beverage, coffee or scotch.
  • announce arrival of prospect to practitioner.
  • retrieve prospect file from consultation tickler.
  • physically walk the prospect to the practitioner’s office, close door behind you.

tax resolution consultation checklist (in-person or phone)

  • in person: explain that in order to keep details straight and make sure you provide the best possible advice, you’d like to take notes. ask if this is ok. it helps settle nerves.
  • “so tell me about your tax situation…” (engagement).
  • go through case review worksheet / consulting questions.
  • look at notices prospect brought/faxed.
  • discuss source of taxpayer liability, including the circumstances that lead to the current situation.
  • inquire as to the history of taxpayer interaction with the taxing authority.
  • record years and tax forms that are unfiled.
  • provide taxpayer with “resolution tips report.”
  • give taxpayer “what to expect next.”
  • use case review questions and notices to branch into other consulting questions.
  • segue into financial questions: “as you may be aware, eligibility for most irs programs takes into consideration [your financial condition]/[the financial condition of your business], so let’s discuss…”
  • asset considerations. does taxpayer have equity in assets, particularly real property or heavy equipment?
  • income/expense considerations. for individuals, really quick, really rough 433-a section 5 calculation. for businesses, p&l quick look. if no p&l, inquire as to “off the top of your head” income/expense numbers.
  • inquire as to client’s estimate of affordable monthly payment. this gives you an idea of where they think they are.
  • proceed to tax resolution sales closing checklist, depending upon business model.

consulting questions

these questions can help you understand a prospect’s problem so that you can formulate a solution for them. these questions also help guide a prospect through the sales process. not all of these questions will be applicable to every situation, nor do you want to put the prospect through an inquisition of this extent, but carefully choosing the questions that you ask will help you formulate a proper solution to the prospect’s problem.

  • how long have you been in business?
  • has business been picking up lately?
  • what caused you to fall behind?
  • what type of an entity are you? (corp, sp, llc, ptnr)
  • have you been able to make any payments on the back amounts?
  • have you been able to stay current with your tax deposits?
  • how long have you been current?
  • how large of a company are you?
  • how many employees do you have?
  • do you own the building you work out of? (if so, how much do you owe, how much is it worth?)
  • are there any physical assets in the business?
  • how much in receivables are still outstanding?
  • if you were given enough time, do you think the business could cash flow its way through this?
  • how much time do you think you need to pay this back?
  • have you been involved in another business with tax problems?
  • have you had a prior representative?
  • have you had a past payment plan? if so, did you default it?
  • have you ever filed bankruptcy – are you currently in bankruptcy?
  • do you own or have any ties to any other businesses?

case review worksheet

this is the case review worksheet that i use when conducting client consultations. many times, i will have the client fill this out themselves, and then return them an evaluation of their case based on their answers. this can also be used as part of an internal “lead sheet” for tracking the status of a prospect. the questions on this form are straight from the consulting questions list, and are the ones i choose to use to create an overall picture of the taxpayer’s situation.

name: ________________________________________________

address: ______________________________________________

city, state, zip: ________________________________________

email address: _________________________________________

best phone number: _____________________________________

best days/times to call: ___________________________________

amount owed to irs: ______________________

tax types owed:  (personal income tax)   (trust fund recovery penalty)   (business income taxes)

(employment/unemployment taxes)     other: _____________

 

do you currently have a revenue officer (irs field agent) assigned to you? if so, what are the most recent actions they have taken against you or requests they have made?

_____________________________________________________________________

do you have any current deadlines for information or payments that you need to meet?

_____________________________________________________________________

have there been any irs threats of levies, wage garnishments or seizures?

_____________________________________________________________________

what was the date and title of your last letter received from the irs?

_____________________________________________________________________

 

have you paid your current federal tax deposits or estimated tax payments on time and in full?

______________________________________________________________________

do you have any past due, unfiled tax returns? if yes, what years (or quarters) and tax forms have not been filed?

_____________________________________________________________________

 

do you have any existing written or verbal agreements with the irs, including delays or extensions of collection action or agreements to make good faith payments on a regular basis?

_____________________________________________________________________

have there been any recent bank account levies, seizures, wage garnishments or other aggressive collections action? if so, when and what action was taken?

_____________________________________________________________________

please describe, in your own words, the circumstances that gave rise to your back tax liability:

_____________________________________________________________________

 

please describe any actions you or a representative have taken recently to address your tax matters:

_____________________________________________________________________

 

do you have any currently filed irs appeals in progress? if so, what is their status?:

_____________________________________________________________________

tax resolution sales closing checklist (integrated sales model)

if you close tax resolution sales in full, up front, with all services contracted for in one sitting, then use this closing checklist.

  • preliminary analysis: “now of course this could change based on what we find during our irs research and what the final financial statements show, but based on what we’ve discussed so far, here’s what the plan of attack would look like…”
  • explain tax resolution process. use flow chart if necessary.
  • explain end result: “…that process will result in …”
    • cnc: “…stoppage of all collections activity against you, no required monthly payments, and most likely never having to repay the tax debt unless your financial situation changes substantially.”
    • ia: “…establishment of an affordable payment plan that will stop all collection action against you, and remove the threat of levies and contact with your family/customers.”
    • ppia: ia verbiage plus, “…and elimination of your obligation to pay whatever tax debt remains after _________ years/months.”
    • oic: “…elimination of all penalties and interest, plus a substantial portion of the tax itself.”
  • primary closing question: “would this result make life better for you?”
  • if charging hourly: “great. in order for us to take care of this for you, i estimate we’d be looking at ________ hours, which would be a retainer of ________ to get started.”
  • if charging flat fee: “great. in order for us to take care of this for you, it would be ________, and we could get started for you today with only ________ (if breaking up fee into payments).”
  • fee discussion. prospects will usually want to know exactly what the fee covers. be sure to explain what’s covered and what’s not. e.g., is tax prep extra or included?
  • respond to other sales questions (“objections”).
  • paperwork: “in order for us to represent you, we do need to submit some paperwork to the irs, so let’s go over that.”
  • obtain signatures
    • form 2848
    • form 8821
    • engagement letter
    • payment authorization
  • in person, walk through signing. over phone, walk through the paperwork they’ll be receiving.

tax resolution sales closing checklist (split sales model)

if your sales model is such that you first sell an investigation of liability and financial analysis, then use that information to recommend the final solution and collect a separate fee for the resolution, then use this closing procedure.

  • explain process: “in order to fully evaluate what actions will be necessary to resolve your tax situation, we first need to obtain some in-depth information from both the irs and yourself…”
  • give it a name: “we call this process an ______________ (investigation of liability, initial research report, etc.).”
  • fee discussion: “for only ______, we’ll file the necessary paperwork with the irs to discuss your case with them, obtain a temporary collections hold to give you time to work things out, obtain account transcripts and other information, and also assemble a full financial package for you. based on that information, we’ll provide you a report of findings and summary of recommended actions, as well as a full quotation for resolving this problem for you.”
  • respond to sales questions (“objections”).
  • paperwork: “in order for us to begin our analysis process for you, we do need to submit some paperwork to the irs, so let’s go over that.”
  • obtain signatures
    • form 2848
    • form 8821
    • engagement letter – limited service
    • payment authorization
  • in person, walk through signing. over phone, walk through the paperwork they’ll be receiving.

post-consultation checklist

if prospect retained your services:

  • mail handwritten thank you note to prospect for meeting with you.
  • if telephone consultation, email/fax/mail/fedex prospect file documents to prospect for signature, if not already done.
  • proceed to tax resolution client intake checklist.

if prospect did not retain your services:

  • mail handwritten thank you note to prospect for meeting with you.
  • calendar future telephone followup touches for 2, 3, 5, 5, 5, 5 and 10 business days out.
  • verify that prospect is on monthly client newsletter mailing list.
  • verify that prospect is on weekly email tips list.
  • file prospect file in active prospects tickler by followup date.