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Fees for Tax Resolution: Dramatic Differences
Jay Freeborne Tax Resolution Blog - Thu, 02/02/2012 - 16:38
In the last week, I have been competing with other tax resolution companies for business (as I always do)...but the contrast in the fees that I charge with some of these other companies is astounding! Dear reader: I am not making these up. These are bonafide true stories from this week.
1. Washington Tax Vs. Wall and Associates, (Pennysylvania branch), $1500.00 vs. $10000.00
A new customer of mine had a tax debt which had already been placed as "uncollectible" by the IRS. In other words, there was absolute no urgency in doing the case -- in fact no further action might not be necessary -- unless client wanted to make a settlement.
I agreed to research his case and also look into a potential seizure matter ( a long story), My retainer $500, $1000 more if a settlement could be reached. Wall and Associates? $10000.00 and $400.00 monthly payments. In fact they said to him, they would get the liens removed on his land so he could receive money from a natural gas company (gas company wouldn't pay him because of the liens). That is a very very bold statement to make to a potential customer.
2. Washington Tax Vs. Tax Resolution Services (TRS) (Encino, CA) $2950.00 vs. $11000.00
Physician with tax issues - $100,000 plus owed to IRS and State of California issue. Case was probably going to make it's way to a Revenue Officer. TRS fee? $11,000.00! I agreed to do the case for $2950.00.
3. Washington Tax Vs. Tax Resolution Services (TRS) (Encino, CA) $5500.00 vs. $18,000.00
Business with 941 tax issues. Filed for Chapter 11 which will turn into Chapter 7. All members of the company have been assessed Trust Fund tax liabilities. Our fee $5500.00. TRS? $18,000.00.
So, you might ask: well, Washington Tax Services might charge more down the road! Negative. We only charge reopening fees if they are warranted by customer delays or if the case passes 12 months and reworking need to be done.
Well, they might rebut: "you get what you pay for!" Not the case. Our customer service system is clearly in place - a well-oiled machine that you can depend on -- including direct access to my or another customer service person's desk.
For the record, TRS is a company that will follow thru so I by mo means want to malign them for that. They are NOT a scam. But the fees are pretty darn high as you can see. Wall and Associates, well, they're another story. Check out my List of 155 Companies for more about them.
Want a decent price for tax representation? A honest analysis? Call me at 1-866-525-7302, Jay Freeborne, Enrolled Agent, Washington Tax Services
Busiest Tax Resolution Sites: Alexa Rankings
Jay Freeborne Tax Resolution Blog - Wed, 02/01/2012 - 15:02
So let's put customer service aside and/or length of time in the business and look at how well tax resolution companies are marketing themselves online.
Here is the Top 20 Tax Resolution Websites by International Traffic according to Alexa (alexa.com) including the year that the company started.
Company Rank Start Date
1. Guardian Tax Resolutions, 321,112- unknown - no BBB record
2. Tax Resolution Services 391,740, year 1997
3. Community Tax Relief, 528,931, year 2010
4. Joe Mastriano, CPA 652,414, year 1985
5. Alvin Brown and Associates, 900,984, year 1998
6. Tax Tiger, 964,694, year 2002
7. Tax Resolution Institute, 1,078,913 - unknown - no BBB record
8. Etaxes.com, 1,155,163, year 1993
9. Freedom Tax, 1,193,918, year 2003
10. Taxmasters, 1,195,163, year 2009
11. Instant Tax Solutions, 1,241,861, year 2004
12. Mike Habib, Enrolled Agent, 1,254,000 (LA Tax Services)
13. ASAP Tax Relief, 1,314,604, year 2011
14. JG Tax Group, 1,354,589, year 2005
15. Ideal Tax Solutions, 1,449,721, year 2010
16. US Tax Shield, 1,545,353, year 2010
17. Omni Financial, 1,722,562, year 1985
18. Limon Whitaker, 1,885,867, year 2008
19. TAXRESOLUTIONTALK.COM This blog!, 2,433,848, year 1989
20. Colonial Tax Consultants, 2,470,000, year 2004
Want to talk the 19th Ranked but #1 Customer Service Oriented Company? :) Call me at my desk at 1-866-525-7302, Jay Freeborne, Enrolled Agent, Washington Tax Services
Big Tax Resolution Companies Almost Always Close or Get Shutdown: Who's Next?
Jay Freeborne Tax Resolution Blog - Mon, 01/30/2012 - 13:11
With JK Harris' closure in the last month, allmost every tax resolution company with national name recognition has gone under. What did these companies have in common? Almost universally a reputation for poor customer service as reflected in F ratings at the Better Business Bureau. All of them had unwanted scrutiny from Attorney Generals around the country and in some cases: class action lawsuits. They all had a very good run due to extensive TV advertising. Their owners all had some very good years, though, and probably have some serious toys/assets to show for it.
Let me jog your memory:
Remember American Tax Relief's commercials? Closed down in 2010. Showdown by FTC
How about Roni Deutch? Closed in 2011 Attorney General Shuts Down Roni Deutch
JK Harris -- as I said. Filed Chapter 7 JK Harris closes
As far as big-time name recognition, who's left? Well just one: Taxmasters based in Houston, TX.
And I would NOT be surprised if Taxmasters joins those other guys in the Graveyard of Tax Resolution Companies. Why? Well they nearly have $20 million in debt -- Yahoo Finance -- TAXS.PK Their recent press releases -- Taxmaster to Issue Unregistered Sale of Shares and Taxmasters paying $50,000 to Company to Promote Stock can be interpreted as either...the sign of a company that is truly on the upswing OR a last act of desperation -- paying their creditor in shares instead of cash and trying to pump up their stock price one last time so they can sell HIGH?
Without sounding too cocky, I did allude to JK Harris' demise: JK Harris - Financial Issues? -- July 2011 Can Taxmaster overcome their F rating at the BBB and attorney general issues to grow their company and satisfy the stock market? We'll see!
Whatever happens to Taxmasters: popular culture will always be thankful for their contribution in TV advertisments. Saturday Night live did the best parody here: SNL spoofs Taxmasters
Bottomline is: people need to do their research when looking for tax representation. The high volume operations that have come into existence in the last decade have really let their customers down. Want an honest analysis of your tax case? Give me a call at 1-866-525-7302. Jay Freeborne, Enrolled Agent, Washington Tax Services or email here: jfreeborne@watax.com
The Offer in Compromise Program Lives On
Jay Freeborne Tax Resolution Blog - Mon, 01/23/2012 - 12:30
I wanted to remind folks of an index of Offer in Compromise Articles from this blog which might be informative for you.
(click on link for story)
A
Short History of the Offer in Compromise Program
How
Long Does it Take Offer to Process? Case Example
Salespeople
Love to Sell Offers
Do
Offers Stop the Collection Process?
Another
Kind of Offer: Doubt as to Liability
Offer
Accepted: Equity Exceeded Tax Debt!
Qualifying
for an Offer
Behind
the Scenes: Doing an Offer in Compromise
OIC
Staff Confusing Taxpayers? March 2008
And also emphasize a few new points on the Offer in Compromise program as it might suit your situation here in year 2012.
1. Stopping the collection process -- important
Filing the Offer in Compromise paperwork with the IRS will stop all collection activity against you as long no levies have been issued or are in process. (Those levies will have to be dealt with separately). So, if you are certain you are a candidate for the Offer in Compromise process and you are NOT currently being levied, it might be a good idea to get the paperwork into the IRS so you can be assured that the collection process is stopped.
2. Offer in Compromise review -- NOW centralized.
AS I wrote here: The Switcheroo, your Offer cases almost universally will be reviewed in offices in New York and Tennessee and NOT in the field as they were previously.
Think you might be an Offer Candidate to settle your IRS debt? Give myself or my staff a call at 1-866-525-7302. I look forward to hearing from you. Jay Freeborne, Enrolled Agent, Washington Tax Services.
Behind the Story of Deceased Tax Resolution Companies: Poor Customer Service
Jay Freeborne Tax Resolution Blog - Tue, 01/17/2012 - 13:15
If you look at the record of the following tax resolution companies that went out of business in 2011
JK Harris, Charleston, South Carolina, b. 1997 d. 2011
Nationwide Tax Relief, Los Angeles, CA b. 2004 d. 2011
Preferred Tax Relief, San Diego, C, b. 2007 d. 2011
Roni Deutch, Sacramento, CA b. 1998 d. 2011
Professional Tax Care, Los Angeles, CA, b. 2008 d. 2011
Associated Tax Relief, Los Angeles, CA, b. 2006, d. 2011
411 Tax Relief, Culver City/Los Angeles , CA, b. 1998, d. 2011
United Tax Relief, Canoga Park, CA b. 2000 d. 2011
They almost all share one thing in common: NOT providing good customer service to the people with tax problems who hired them. While in the short term -- when their phones were ringing off the hook -- a focus on slick marketing -- TV ads, mailings, etc. -- worked for these companies. In the long term, it is only a focus on good customer service -- creating a system that serves your customers -- that shows that you are interested in being a good tax resolution/representation company.
All of the eight companies above at one time had an F rating at the Better Business Bureau. I am learning now that is the sign of a company that it is eventually going to close. With the amount of competition in the tax resolution industry now, you can't afford to get those kind of ratings and compete anymore.
More deceased tax resolution companies can be found HERE.
If you are an "orphaned" client of one of these companies and/or a person with a tax problem that needs help solving -- give me a call at 1-866-525-7302 to get an honest assessment of whether tax representation will serve you. Jay Freeborne, Enrolled Agent, Washington Tax Services.
What Fees you can expect for Tax Representation: a Review of 2011 cases
Jay Freeborne Tax Resolution Blog - Wed, 01/11/2012 - 17:06
As I review my tax cases from last year, I thought the general reader of the tax resolution blog would be interested in what people paid Washington Tax Services and what they got as a result of their investment with us.
Here are some completed cases with the fee that was paid:
Fee $1250.00 Michigan -- Hired us in March 2011, Uncollectible Status granted in June 2011
Client was successfully placed into uncollectible status on his $50,000 IRS debt. Taxpayer was aided in getting all of their returns done by our staff research team before uncollectible status was achieved. Furthermore, a levy on his bank account was released at the beginning of the case.
Fee $1275.00 Florida - Hired us in March 2011, Offer accepted November 2011
Taxpayer had Offer in Compromise accepted with the IRS on her $30,000 tax debt. Offer was $2808 to settle the debt. Client's record was also researched initially and client was protected collection activity during this time.
Fee $1500.00 Chicago, Illinois - Hired us in January 2011, Offer accepted December 2011
Taxpayer owed $350,000 to the IRS. IRS accepted $1000 Offer to settle this debt. I know this sounds fictitious. But it is really really true. Scout's honor.
Fee $12675.00 Washington State - Hired us in January 2011, still working the case
Taxpayer owed the IRS over one million dollars (!) based on returns that the IRS had prepared for them in the absence of returns they filed their own (Substitute for Returns). We stopped levies against their bank accounts and wages. We filed ten very complex 1040 tax returns. We have successfully removed penalties on the debt, but are still working to get more penalties removed by APPEALING a rejected penalty abatement for a few years. Debt has been reduced to about $50,000 after the returns were filed and client down-paid some of the debt.
Need more examples? You can also refer to our general fee schedule here: Fees for Tax Representation -- Ballpark
Fees seem reasonable? Like the outcomes? Give me a call at 1-866-525-7302 if you have a tax problem and are looking for an experienced staff to handle it for you. Jay Freeborne, Enrolled Agent, Washington Tax Services
Here come the IRS levies and garnishments again ...
Jay Freeborne Tax Resolution Blog - Mon, 01/09/2012 - 14:19
The IRS had a bit of holiday hiatus from levies and garnishments. Now, they are back in business. I am getting quite a few phone calls from folks who have been levied.
If you have been levied or garnishmed, I understand that you might be panicked. But if you can take a deep breath, here's what you need to gather before calling our office:
1. Garnishment Call your payroll and ask for a fax #. This will help facilitate a release of your garnishment.
2. Bank levy Call your bank and ask for a fax # for levy release. Do realize that the bank is required to freeze the money for 21 days. So, we have 21 days to get it released.
Read other articles about IRS collection actions at the following link: Articles on Collections: Lowering the Heat
Please call me at 1-866-525-7302 or my colleague Marty Griffith at 1-866-525-7324 if you need help with your IRS/levy or garnishment. Have your fax #'s ready! Jay Freeborne, Enrolled Agent, Washington Tax Services.
Tax Resolution Blog Posts of 2011: What Might Be Relevant to 2012
Jay Freeborne Tax Resolution Blog - Mon, 01/02/2012 - 13:46
Looking at the posts on the tax problem resolution blog from 2011, here are the most relevant posts for 2012...
Changes in IRS practices and review of tax resolution issues:
If you are in financial hardship: you might want to look at the pros and cons of Offer in Compromise vs. Uncollectible Status: OIC vs. U. Status
There is a big big change in how the IRS handles tax cases for people who owe $$$$ : The Switch: Large Dollar Cases to Field, OIC Cases to Central Offices
Payroll taxes and 941 issues recap:
A Primer for 941 tax cases
Problems of the Tax Resolution industry:
What you should expect from quality tax representation: Goofus and Gallant - Differences in Customer Service AND How Tax Resolution is Done
Problems in The Tax Resolution Industry: Cold Calling Tax Liens
and Tax Resolution Telemarketers will SAY ANYTHING!
Finally an overview of the tax resolution marketplace:
Too Many Players in Tax Resolution Industry?
Happy New Year to all. If you are looking for an honest and inexpensive solution to your tax problem, call me at my desk 1-866-525-7302 or email me at jfreeborne@watax.com, Jay Freeborne, Enrolled Agent, Washington Tax Services.
No Reorganization: JK Harris, One of the Oldest Tax Resolution Companies Files Chapter 7
Jay Freeborne Tax Resolution Blog - Fri, 12/30/2011 - 00:04
JK Harris was one of the first tax resolution companies to advertise on TV. The company also was the only tax resolution company to sell and operate franchises all around the country. While their marketing was excellent and innovative, they never provided a good model for customer service. Hence their F rating at the Better Business Bureau, class action lawsuits and complaints from Attorney Generals around the country. Well, as of December 30, 2011, the company is "going under" according to the Charlestown Courier: http://www.postandcourier.com/news/2011/dec/30/jk-harris-goes-under/
They were trying to get financing and file a Chapter 11. But their largest creditor objected. Farewell JK Harris. I had alluded to JK Harris financial issues in earlier blog posts below as well as their very poor and deceptive customer management:
Chapter 11 for JK Harris?
The JK Harris & Taxmasters Horror Shows...Expensive Admission
Just Got Off the Phone with a JK Harris Client...
More Financial Trouble for JK Harris?
JK Harris: Financial Trouble?
If you were a client of theirs and need some guidance, feel free to call me or my staff at 1-888-282-4697. Jay Freeborne, Enrolled Agent, Washington Tax Services
The Pros and Cons of Resolving IRS debt: Offer in Compromise vs. Uncollectible Status
Jay Freeborne Tax Resolution Blog - Tue, 12/20/2011 - 09:46
If you meet the criteria for "financial hardship," you might just be a candidate for an Offer in Compromise or Currently Not Collectible to resolve your IRS tax issue.
The biggest question, though, IS which one of these two resolutions is better for you and your tax situation?
Offer in Compromise
PROS
Removes the tax lien against you.
The debt goes away - allowing you to earn more money in the future without having to pay the taxes.
CONS
You will have to pay a $150 filing fee to process your Offer.
You will have to pay a certain amount to settle your debt (depending on what you qualify for).
Your Offer might very well be REJECTED.
If your Offer is rejected, you added time to the clock on your debt's expiration date.
You will need to be perfectly tax compliant - filing and paying for FIVE YEARS.
Uncollectible Status (Currently not collectible or Status 53)
PROS
You pay zero.
You are taken out of collections. You do NOT need to fear being levied or garnished anymore.
CONS
You still owe the IRS and a tax lien might be filed against you.
You might be taken out of uncollectible status if you don't file returns.
You could be taken out of uncollectible status if you show a dramatic increase in income.
The IRS re-reviews uncollectible status to see if you still meet the criteria.
You can find more articles on the Offer in Compromise on the blog HERE
Want to discuss these issues in even greater depth? Give me a call at 1-866-525-7302 or send me an email to jfreeborne@watax.com . Jay Freeborne, Enrolled Agent, Washington Tax Services
Cold Calling Tax Liens - 941 -- One of two new companies claims to be the Private Taxpayer's Advocate Service
Jay Freeborne Tax Resolution Blog - Mon, 12/12/2011 - 10:59
Add two new cold callers to the list of people who telemarket to people and businesses who have TAX LIENS against them:
Safe Harbor Financial based out of Chicago https://safeharborfc.com/ according to BBB record started in September 2009: BBB record
and yes another company in Colorado: SLS Financial Solutions: http://www.slsfinancialsolutions.com/ according to BBB starting in July 2009: BBB record
One of my clients was told by Safe Harbor that they are the "private" Taxpayer's Advocate service. And no not the IRS: http://www.irs.gov/advocate/ He was told by the telemarketer: that he "came across his file" and thought he would give him a call about his tax case. I will say this is a really effective and clever sales tactic. But I wonder if he should tone down the "Taxpayer Advocate" part of sales pitch?
Nonetheless, keep your eyes and ears out for telemarketers. While their BBB records are impeccable for now: some important clues are
1. Are they overcharging you?
2. Are licensed tax professionals available? Do you know their names?
3. What role with the telemarketer play in the resolution of the case? Who will be accountable?
I have written about the questionable legality of telemarketing tax liens here: The Legal Case Against Cold Calling Tax Liens and wrote extensively about Colorado's tax lien telemarketing industry here: Mountain Time Phenomenon and here: Tax Liens Incur Mailings and Phone Calls
JK Harris: Bankruptcy Hearings Could Make or Break them
Jay Freeborne Tax Resolution Blog - Mon, 12/05/2011 - 11:50
Kudos to the reporters at Charleston's "The Post and Courier," who have been reporting on the JK Harris bankruptcy: http://www.postandcourier.com/news/2011/nov/30/jk-harris-at-a-crossroads/
The money quote:
If it nails down the new funding, JK Harris plans to resume promoting
its tax services on TV stations in the 60 biggest markets. The company
has been relying solely on name recognition for new business since July,
but with cash running low, it needs to step up its marketing efforts in
a hurry, the CEO testified.
"If we don't start advertising by the first week in January, we might
as well liquidate," Harris said during Tuesday's three-hour hearing,
which was laced with accounting jargon and included tearful pleas from
two laid-off employees seeking back wages.
From my vantage point, Harris' comments strike me as pretty cynical. He makes no mention of the fact that his company rates a F rating at the BBB: BBB record Or why Attorney Generals around the country decided to pursue them for poor services. Or why he lost a large class action lawsuit in the first place:
QUALITY CONTROL!
I am biased, of course, but with no improvement in quality control and providing good services to their clientele, I hope the bankruptcy court says unequivocally: NO!
Can you do an Offer in Compromise twice? Customer from the '90's rehires Washington Tax
Jay Freeborne Tax Resolution Blog - Mon, 11/28/2011 - 10:22
If you make a deal with the IRS using the Offer in Compromise program - Offer in Compromise program - history, you are required to be compliant on your taxes for FIVE YEARS. If you pass the five years without any marks, you are free and clear. So does that mean if you owe the IRS again AFTER the five years mark, that you could utilize the program again? Yes it does.
In fact a client of Washington Tax Services from the '90's is rehiring us here in 2011 to address a new tax liability he created and the likely solution is going to be an Offer in Compromise.
Are you a candidate for an Offer in Compromise? I will tell you your chances if you call me at 1-866-525-7302, Jay Freeborne, Enrolled Agent, Washington Tax Services
The Power of Attorney Form: Clues when Companies Misuse it
Jay Freeborne Tax Resolution Blog - Tue, 11/22/2011 - 10:11
If you are going to be represented by a tax professional to solve your tax issue, you will need to sign a form 2848 - Power of Attorney form -- http://www.irs.gov/pub/irs-pdf/f2848.pdf Listed on this form under "Section 2 - Representatives" should be the NAMES of the Enrolled Agents, Attorneys or CPA's that you are appointing to represent you.
What you DO NOT WANT TO SEE IN THIS SECTION is the COMPANY NAME. That is ridiculous and an error. A company CANNOT represent you. A client of mine just sent me a copy of the company's 2848 that he hired from Calabasas, California. Their company NAME was listed on the 2848. Silly. The client was actually locating the 2848 so he could request a refund from them -- using the professional's name as "collateral" in that negotiation. No luck.
On the other hand, a company CAN be listed on the 8821 form -- http://www.irs.gov/pub/irs-pdf/f8821.pdf as several people on staff can be entrusted to research your record with the IRS -- which does NOT require them to be a licensed tax professional.
If a fly-by-night tax resolution outfit is sending you a 2848 WITHOUT NAMES -- that's a very bad sign.
If you want to hire someone WITH ACTUAL NAMES (!) on the 2848, call Jay Freeborne, Washington Tax Services at 1-866-525-7302.
From BBB accredited to F rating to closed: The Sad Cycle of Tax Resolution Companies
Jay Freeborne Tax Resolution Blog - Tue, 11/15/2011 - 09:41
I am an adding another tax resolution company to the deceased list. Apparently Professional Tax Care of Los Angeles which started in 2008 is no longer operating. Phone calls seem to be rerouted to a call center called "The Tax Help Center."
Again sorry to the clients who were abandoned. A poster on the blog did express this warning a few months ago:
I’m writing you because of some
disturbing information I read on your blog under the title “Recommended
Companies But With Some Reservation.” For the most part, your
assessments on the mentioned companies are correct for the exception of #
7 – “Professional Tax Care”. You mentioned they started in 2003. I can
only assume you received this info from either the company records or
the BBB. Either way, this is untrue. Let me give you a brief synopsis of
how “Professional Tax Care” got started and their name… I can say the
things I do because I witnessed it all.
Chris Seminatore –
President of PTC, got his start in the tax resolution industry through a
company in Los Angeles that you may be aware of as… “Tax Care
Professionals” back in 2008 after he answered an ad in craigslist. Keep
in mind that Chris claims he never did tax relief before and was hired
as an opener. Chris had been working for a few months there and for some
reason he was doing really good at selling the services and becoming a
lead sales rep. However, after about a month it was discovered that he
was guaranteeing the services of tax relief to new prospective clients,
therefore cranking up his sales. Once the director of PTC heard of this
he was immediately fired on the spot and escorted out of the building
while he was screaming that “this was all unfair”. Funny thing was, a
few months go by and we heard of a new tax relief firm open up in
Beverly Hills named “Professional Tax Care.” How ironic the resemblance
of the two names… Tax Care Professionals – Professional Tax Care. Later
it was discovered that Mr. Seminatore through the help of his girlfriend
who had a lot of money, funded his dream of opening a tax firm mainly
due to the fast money this type of business represents. You see, Chris
was a failed director trying to make it in Hollywood for but for
whatever reason could not get latched on to Hollywood. So since he
failed in Hollywood, he figured he could play a president of a tax
relief firm with only a few months experience under his belt. Now I’m
sure he has surrounded himself with people who have done tax relief, but
Mr. Seminatore is no one to be trusted. I enjoy the You Tube video
showing him sitting very cordial with law books in the back as he spits
out the lies he claims his company can do to help the people with tax
problems. There’s a reason he has a low rating with the BBB, he has no
experience in tax resolution. However, he does deserve an Academy Award
for fooling the general public thus far.
What is becoming clear though is a pattern of the fly-by-night tax resolution company:
their record at the BBB FIRST starts as an "A rating" and sometimes with BBB accreditation: Professional Tax Care BBB rating THEN the record plummets to C and then D plus and then finally a F rating. They lose their accreditation with the BBB and then they close their doors and are added to the Deceased List
If you were a client of Professional Tax Care's and need some guidance, give me a call at 1-866-525-7302. Jay Freeborne, Washington Tax Services or email me at jfreeborne@watax.com
How the IRS gets your attention: Summons
Jay Freeborne Tax Resolution Blog - Mon, 11/14/2011 - 16:22
It's one thing to owe money to the IRS. It's another thing to NOT file your tax returns. When you are a serious serious procrastinator: the IRS tries to get your attention by issuing a SUMMONS.
A summons usually requires that you supply to the IRS 1. tax returns 2. a completed collection information statement with documentation of your financial condition. The summons tells you WHEN and WHERE you are supposed to appear at an IRS building with the requested documents.
If you DON'T GO to the summons, the IRS might refer you to the Dept. of Justice which might make your case a criminal one.
It is possible to AVOID the summons if you contact a licensed tax professional like Washington Tax Services. But I would recommend that we are given ample time to postpone. You can also avoid it by sending the material requested well in advance of the Summons date.
Nonetheless, if you have been summonsed it doesn't mean you are a bad person JUST a serious procrastinator. If you need guidance on your Summons or tax issue, call me at 1-866-525-7302, Jay Freeborne, Washington Tax Services
Deciding on Tax Representation: Important clues show legitimacy of company you might hire
Jay Freeborne Tax Resolution Blog - Mon, 11/07/2011 - 14:40
I try to keep people informed on tax resolution and tax representation companies who are trying to reach a national audience thru my list of 138: A List of 138 Tax Resolution Companies. However beyond this list, there are more cues and clues that can tip the hand of a tax resolution company that might not be acting in your best interest.
First, let's be clear -- time spent in the business of tax resolution -- is very important. Any company that has been representing taxpayers for over 10 years has to be doing something right. The tax resolution business is a very delicate - high risk/reward business that has the potential of customer service disasters.
Second, BBB is a good resource. Make sure that a company has a record there. You might want to downgrade companies with A ratings that have been in business less than 2 years.
All of that said, one very big clue is HOW the tax resolution salesperson/consultant follows up for your business after initially speaking to you. Be suspicious of "false" urgency to get them to have you hire them. Furthermore, if you are getting hammered with followup calls: be suspect. One followup call is ENOUGH. Beyond that : I think his/her commission is more important than YOU. I have been working in and am aware of these sales-driven environments enough to know that the SERVICE SHOULD SELL ITSELF. You don't need to be harassed to hire a tax resolution company.
The other clue is the FEE. I have said again and again on this blog: that if you are going to pay someone $3000 or $4000 or more for representation: the company better be ready to give you the red carpet treatment as well as a slew of services for the fee. More on that here: What $4000 should pay for in tax resolution services
If you want an honest analysis of your tax case, call Jay Freeborne or one of my associates at Washington Tax Service 1-866-525-7302 or jfreeborne@watax.com. Thanks, Jay
The Web of Tax Resolution Companies and the IRS: How Tax liens generate mail and phone calls
Jay Freeborne Tax Resolution Blog - Thu, 11/03/2011 - 10:53
We at Washington Tax Services will be the first to admit -- in our inception - year 1989 -- mailing letters to people with Federal tax liens was a core form of marketing for us. In fact, back then, we were one of the few tax resolution companies organized as a national operation and one of the very few that used letters to people with tax liens as our central form of marketing. Well almost 24 years later -- the quantity of new players in the game of tax resolution of varying quality and experience is astounding -- The List of 138
This list was a mere 50 or some companies just over a year ago.
Tax resolution marketing is now a game where a Federal tax lien on yourself or your business prompts an avalanche of phone calls from the following tax resolution companies in Colorado and elsewhere:
Omni Financial
20/20 Financial
Berkshire Capital Partners
The Core Consulting Group
Union Tax Consulting, New Century Tax Consulting, ,
Taxcut 2010 or Incline Group:
Clear Creek Tax Consulting
Larson Financial
Tax Resolution Center (?)
M & M Financial -- Illinois
OFS Tax Resolution, Colorado
(I have written previously on whether cold calling tax liens is legal or not -- The Legal Case Against Cold Calling )
The cold callers also called "openers" try to get people on the line who are then transferred to a "closer." Neither the "openers" or the "closers" are licensed tax professionals -- Enrolled Agents, CPAS or Attorneys -- but rather commissioned salespeople and telemarketers. Nor in most cases do they play any eventual role in the resolution of your case. But you can be assured: they are often very charming and very good at conveying the utmost URGENCY in handling your tax problem. Check them out on my list The
List of 138.
You might also receive a flood of mail from some of these companies including Washington Tax Services.
Community Tax Relief, Chicago, IL
Tax Defenders,Chicago, IL
Advocate Tax Solutions - ATR Tax Lien
American Tax Solutions, Chicago, IL
Tax Network USA
U.S. Tax Resolution, LLC
Many of these companies are totally legit. However, some are very new in this business and so unproven. Others send really potentially fraudulently IRS imitation letters. See here: Misleading Tax Lien Letters Others letters from legitimate companies are just trying to get your attention like us. You would be wise also to check them out on the list here: The List of 138
Based on some comparison interviews I have been doing against some of the companies listed above, I have concluded that the biggest giveaway is how much they charge!? Any one charging you $4000 or more to represent you on a tax problem better have a good justification for it: What if Someone Charges $4000 or More I have seen these companies rarely charge below $2000.00.
If you want an honest analysis of your tax issue and a reasonable quote, please call me at my desk 1-866-525-7302 or email me at jfreeborne@watax.com , Jay Freeborne, Enrolled Agent, Washington Tax Service
How can People live with IRS Garnishments for over a year?!
Jay Freeborne Tax Resolution Blog - Fri, 10/28/2011 - 13:11
We get levy and garnishment releases every day at Washington Tax Services. It's par for the course.
However it's not often that a levy release get's this thank you from a client:
"Thanks, Jay! Got my first regular paycheck in over a year
today. " Phil G., Texas
Three Kinds of IRS Audits: Live , Correspondence and Underreporting
Jay Freeborne Tax Resolution Blog - Mon, 10/24/2011 - 14:27
We at Washington Tax Services are seeing more tax representation cases that are "examinations" or audit - oriented rather than collection cases at the moment due to what we think is a reorganization of the collection branch -- as I wrote here: IRS Collection Branch - Regrouping
In a nutshell, there are three different kind of examinations:
1. Live audit -- This is when the IRS has appointed a Revenue Agent to investigate your tax returns. You will receive an IRS letter explaining to call and/or appear at a certain time and date. The audit is often done in-person unless you have a tax professional like myself or my colleagues to represent you over the phone, fax, email, etc. These are pretty intense and usually involve the most complex and in-depth problems with your 1040 returns -- most often for business expenses, i.e., Schedule C.
2. Correspondence audit -- The "correspondence" audit should be done thru the mail usually from Holtsville, NY or Austin, TX. They usually are looking for back up on deductions you made on your Schedule A. You or your tax professional will need to correspond with the IRS to support your deductions and resolve the matter.
3. Underreporting audit -- The under-reporting audit is done for you. You receive a letter that indicates usually income that you overlooked when filing your return. It is very common to get this fixed by amending your return with the 1040x.
What kind of audit or examination do you have? Give me a call to discuss whether tax representation would be worthwhile. 1-866-525-7302 or email me at jfreeborne@watax.com, Jay Freeborne, Enrolled Agent, Washington Tax Services.
