Let me start
off the return of THE TAX PROFESSIONAL blog with an idea for a post-tax season
promotional campaign that I had always wanted to undertake in the past, but
never got around to it. At this point I
will never get to try it, as I am no longer looking for new clients. I am actually attempting to “thin the herd”
as I approach retirement after my 50th tax filing season.
This idea
will take an initial investment of money and time, but has great potential and
could turn into an annual event.
Pick a slow
period when you have free time – like now - and take out ads in local papers
and on local radio programs to announce a special offer. The ads will begin by asking taxpayers if
they are confident that their past tax returns were prepared correctly, and
that they paid the least amount of federal and state income tax or got the
biggest federal and state refunds possible.
You then
offer a special free service. During the
chosen month taxpayers can bring their past three years’ federal and state tax
returns to your office and you will review them for free. If the returns were prepared correctly and
there is nothing you would change there is no charge. If you find an error, and can amend a return
or returns to get a refund, you will prepare the amended return(s) at your
normal fee schedule, or maybe a special reduced rate (perhaps 50% of your
normal fee).
In the case
of minor errors that would generate small refunds of perhaps $50 - $100, and
your fee to amend might eat up most or all of the refund, amend anyway and
either do not charge or charge a nominal amount not to exceed 50% of the
refund.
My mentor and
I discovered early on that the best way to get a new client for life, and a
good source of future referrals, was to amend a past return, prepared by the
taxpayer or someone else, to get a refund.
Of course back in “the day” we had more tricks we could use, like Income
Averaging and 10-Year Averaging, to get a potential new client a really big
check.
Today the
main target audience of such a campaign is the taxpayer with little or no
knowledge of tax law and the Tax Code who “self-prepares” by using a “box” (tax
preparation software). You want to
emphasis the fact that no tax preparation software is a substitute for a
competent and experienced tax professional.
And, what was
always my favorite thing to do, you also want to take clients away from the
fast food preparation chains.
If you find
an error that caused the taxpayer to underpay their correct tax liability you
would point it out and recommend that they amend, but charge nothing if they do
not. Sometimes identifying a serious
mistake and offering to fix it promptly before the IRS bills the taxpayer(s),
to reduce potential penalty and interest, will also result in a new loyal
client.
Have you ever
tried something like this? How did it
work out?
And those of
you who decide to try this idea, please let us know the results.
If you have a
practice tip you would like to share with fellow tax professionals you can
submit it to me at rdftaxpro@yahoo.com.
TAFN
Great idea! I wonder how many people would consider that? It beats doing it during rax season!
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