I recently received a query from an old friend who is faced with a problem I have seen before. In both cases, a firm has a service that will benefit clients tremendously by taking advantage of some relatively unknown features of the tax code. In both cases, the firms find that prospective clients tend to vet the service with their auditors, before going ahead. The auditors argue against hiring the firm, often on grounds counter to the facts of the tax code. But also, they are probably embarrassed that someone outside their firms is bringing the fresh idea to their clients. Though the firms with the new services can demonstrate that the auditors are misinformed about the objections they pose, the auditors' resistance often kills client interest in going ahead. Often, the auditors' strong relationships with their clients and easy access to them weigh more than the logic of the firms trying sell over auditor resistance.
What would you recommend these firms do?
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