Tax preparers who’ve been fielding calls from alarmed clients claiming the IRS contacted them with demands for money can now rest easy. A massive telephone tax scam cheating thousands of Americans out of millions of dollars was discovered in India. At the time of this writing, more than 70 people have been arrested. There are 600 or more people still being questioned on their involvement.
Working with US collaborators, the suspects ran a yearlong telephone tax scam, operating fake call centers in Mumbai. Voicemails from those posing as U.S. tax authorities instructed US citizens to call back immediately to avoid consequences, demanding payment of unpaid taxes. Many of those targeted wanted to get off the IRS radar and unfortunately, paid quickly without checking the validity of the calls.
Mumbai police officer Parag Marere said victims paid thousands of dollars to “settle” false accounts. It’s estimated the telephone tax scam brought in $55 million in a year’s time, at a sum of $150,000 per day.
The incident emphasizes the importance of building trusting relationships between tax professionals and clients. Those who called their accountants and tax preparers to check out the voicemails before acting saved themselves from being victimized by the telephone tax scam.
Building Rapport with Clients
How can you build trusting relationships with clients you might see once or twice a year? Keeping regular contact is essential. Sending a monthly newsletter is one strategy that will keep you top of mind. Staying in touch with clients who are behind in tax filing shows you care and will certainly help to build rapport.
Not only can you let clients know about filing an extension, but you may discover they are avoiding filing because they already owe back taxes and are not sure what to do. Interestingly, just as people don’t open their mail when they owe money, many think if they ignore their tax responsibility it will also disappear. We both know it doesn’t work that way. They just get deeper in debt.
Are You Avoiding?
Tax professionals also avoid things that seem difficult. Because IRS dealings can be time and labor intensive, many sidestep the one aspect of their business that can generate revenue year round: Offers in Compromise. Most tax professionals would agree that dealing with the IRS can be overwhelming if you’re not sure how to expedite paperwork. We know. We’ve done it, too.
So many clients were coming forward for offers in compromise (OIC), we at IRS Solutions developed a system to automate paperwork for each step of the process. It’s worked so well for us that we decided to offer our software to other tax professionals.
Learn how you can generate income by offering year-round products and services that will not only build rapport with your present clients, but fill your calendar with referrals. Contact IRS Solutions and we’ll pass along what we learned along the way about tax resolution software, service offerings and pricing.
IRS Solutions’ guide to 4 Steps to Getting Started in Tax Resolution is FREE. Grab your copy now and start offering – and charging for – services that will boost your bottom line year-round. Get started in tax resolution today. Learn more about all of the features IRS Solution membership brings.
