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Jay Freeborne Tax Resolution Blog
Offer in Compromise - DOUBT AS TO LIABILITY (OIC-DAL) -- when is this used?
Mon, 06/14/2010 - 13:43Shopping for a tax professional? One way to test their knowledge is to ask them about the OIC-DAL procedure?
If they go on and on about the Offer in Compromise - Doubt as to Collectability and so on, pennies on the dollar, etc., you know that you are dealing with a salesperson or someone with not a lot of experience in the IRS collections arena.
Our staff is doing Doubt as to Liability cases for clients primarily who missed the 3 year statute to amend their tax return to change what they owe.
For example, I have a client in Orange County, California who erroneously filed her 2006 tax return - by claiming IRA money that she rolled over into another IRA as income. However, she missed the opportunity (April 15, 2010 - 3 years after the tax return was due) to amend the return. The IRS doesn't have to comply with this OIC- DAL request, but it is the only avenue minus Tax Court that can be used to get them to correctly calculate the liability.
Call me at 1-866-525-7302 for more information how to fix a liability that you have with the IRS that can't be fixed by amended returns. Jay Freeborne, E.A.
What Tax Problem Cases Do Not Require a Tax Professional?
Fri, 06/11/2010 - 13:45I often try to measure when my services might NOT be necessary.
The most simple case that you should very well be able to resolve YOURSELF without the help of a tax professional:
1. You owe a very small amount to the IRS, less than $10,000 for a recent TAX YEAR - 2009, for example. If that is the case, you might just be best off calling the IRS and working out a streamline installment agreement on the debt. Do it!
Letter/Email to Prospective Client
Wed, 06/02/2010 - 09:37"As you know from reading my blog, there are more rip-offs than honest individuals in the tax resolution industry.
When all is said and done and after the jingles of the slick advertisements go mute,
your tax situation requires:
1. A tax professional -- Enrolled Agent, Tax Attorney or C.P.A.**
2. Who has demonstrated at least five years of practice in the field of IRS collections and IRS examinations.
3. Who is going to charge between $1000.00 on the low end to $2000.00 on the high end for a flat fee to represent you.***
4. Naturally, you want to one of these individuals to be someone you like and can trust.
** The reason you want to hire a licensed tax professional and not a salesperson is there is an ethical obligation for a licensed tax professional to do the right thing. If they don't serve the taxpayer, they can be reported to A. Attorney General of their respective state OR B. IRS Office of Professional Responsibility.
(*** This fee is curtailed to her specific situation. I may charge higher if the case had a level of complexity that warranted a higher fee.)
I do meet the criteria explained above. BUT, I am not the only licensed tax professional in the U.S.. There are a number of other honest tax professionals in the U.S. with similar experience to myself. I do try to reference them in my blog. But naturally, I am biased and would prefer that you hire myself and my firm -- that is why I am expending this energy to meet your needs and concerns.
Jay Freeborne, Enrolled Agent, Washington Tax Services
Updated for 2010 -- Tax Resolution Companies -- Dead Ones, Bad Ones, Good Ones -- My attempt to chronicle them all
Tue, 06/01/2010 - 12:56Here is my ANNUAL attempt to make a complete list of every purported Tax Resolution Company in the IRS. I have categorized them into:
1. Dead Companies
2. Bad and Alive Companies.
3. Decent Companies
4. New Companies -- The Verdict is Out
How do I reach my conclusions about these companies? My research and analysis is based on a few things: first, what clients or potential clients share with me about their experiences of these companies, second, what their BBB listing tells us about the company and third, what I read on the internet about the company. Naturally, I have a self-interest to portray Washington Tax Services, my company, as the best. But I truly am trying to resist this bias as I review these companies. When I find tax resolution companies that genuinely seem to serve people and provide value to them, I want to acknowledge them. Unfortunately, these companies are few and far between.
DEAD TAX RESOLUTION COMPANIES:
1. Strategic Tax Relief - San Diego - out of business in the fall/winter of 2008.
2. Traveler's Tax Group - Los Angeles - I think out of business in 2005 or 2006. More on their whereabouts here: Traveler's Tax -- Where are they Now?
3. Capitol Tax Relief - Los Angeles - I think out of business in Jan. 2004?
4. Innovative Tax Relief - Los Angeles, founded 6/04, -- BBB Record -- Innovative Tax Relief . I believe this company was shut down and morphed into Progressive Tax (see Bad companies below). The BBB records show the same owner: James Phan.
5. Effectur - North Carolina, deceased in 2009. My story here : Effectur Story
6. Tax Care Professionals, Los Angeles, CA, deceased in 2009. According to my research, this company morphed into http://taxteampro.com/. The stories presented here about the new company are troubling: Trust Link - Reviews
7. Summit Tax Resolution, Boulder, CO. Deceased in 2010. According to the BBB, the owner Andrew Hardy was arrested for drug dealing and the company closed in April 2010!!! BBB record and story Holy cow! Summit is one of the numerous tax resolution companies in Colorado with roots in Omni Financial including Clear Creek Tax Consulting, 20/20, Mackinaw Tax Consulting and Colonial Tax consulting with suspicious practices. I just don't get the best impression from this network of companies (See also the attached comment at the end of this posting by an ex employee of some of these companies).
8. Federal and State Tax Negotiators, Renton, WA Deceased in 2009 ?? These guys have been "neighbors" to us for several years. Their BBB record is a disaster: FSTN BBB record It appears these guys closed down and/or wanted to get away from their toxic BBB record and started Safe Tax Help - Safe Tax Help And geez, this company which started in Sept 2009 already has a C minus rating at the BBB: BBB - Safe Tax Help When do people learn?
BAD COMPANIES AS REFLECTED BY D to F RATINGS AT BETTER BUSINESS BUREAU
1. Associated Tax Relief - Los Angeles, founded 11/05. - also changed their name to Authorized Tax Relief ? (due to BBB complaints). Not only did they morph into a new company - Authorized, but they created two different BBB records a good one to replace the bad one for Associated -- Two BBB records -- brilliant
2. American Tax Relief - Los Angeles, founded 4/99. BBB -- American Tax Relief
3. Progressive Tax Group - Calabasas/Southern California, founded 1/07: (Previous company name: Innovative Tax Relief -- see above). BBB - Progressive Tax Group Interesting observation - The contact for Innovative ) - James Phan, Attorney is the same as Progressive Tax Group - which has me suspect - is that Phan closed Innovative and relocated to Calabasas and started Progressive Tax Group ).
4. Power Tax Relief - Los Angeles, founded 11/05 -- BBB - Power Tax Relief I know that this maligned company was founded by an ex-employee of American Tax Relief.
5. Taxmasters - Houston, Texas -- I have written several pieces on Taxmasters. I think they are the best marketers of tax relief services right now: They dump huge money into Fox News among other TV networks. They are also the worst most incompetent company I know of based on real live experiences relayed to me, a toxic BBB record and finally, an Attorney General in Texas ready to kick ass: read here Attorney General Prosecutes Taxmasters
6. J.K. Harris and Associates - founded 1997(?) South Carolina - main office with franchises all around the country. Someone I met described going to their office like meeting a mafioso. Loser in massive class action lawsuit. Sued in many states by Attorney Generals. JK Harris - BBB record Yet, their advertisements with the Rush Limbaugh look-alike Mr. Harris still pop up on TV. I relayed a recent story of someone who hired them here: JK Harris -- Federal Way office story These guys are the oldest company I know of -- they have been around almost as long as my company. I guess they are in business now to pay off their class action lawsuit -JK Harris - Info on Lawsuits
7. Tax Incorporated - Los Angeles, CA I believe these guys are another offshoot created by ex employees from American Tax Relief. Their BBB record says what you need to know: Tax Incorporated - BBB record
8. Nationwide Tax Relief -- Brentwood, CA BBB Record - Nationwide These guys are deceptive in that on their web page they indicate offices all around the country. Website: Nationwide I think this is an illusion. And no, I don't work for these guys although in a Chicago Tribune article I was mistakenly referred to as an employee of this F rated company -- Chicago Tribune article
9. Safe Tax Help - Bellevue, WA - Sept 2009. See Federal and State Tax Negotiators in the deceased section above.
10. Perfect Tax Relief, Los Angeles, CA - Jan 2009 - I really hate companies that lie about their length of time in the business: Perfect Tax Relief Website Perfect says they have been in business for 20 years. Then why does this BBB record say they started in 2009: BBB record? This company's location in Los Angeles also is a tip off that they are probably one of the numerous companies started by ex employees of American Tax (see above). Their BBB record says that rate a B. My colleague Marty Griffith got off the phone with a potential client who says they were hard sold a "slam dunk" Offer when the IRS had already told them no. Please folks: run run run from the not even barely perfect tax relief.
11. Advantage Tax Resolution, Inc., Beverly Hills, CA, since Jan. 2006, One of the numerous bad tax resolution companies all within 10 miles of each other in the Los Angeles area. Their F rated BBB record
They may have set up a decoy BBB record to divert attention from their F one here - New BBB record for Advantage?
12. 411 Tax Relief, Culver City, CA, since 1998 (doubtful but that is what their BBB listing says)...More of the same here. I could copy and paste this plethora of bad Southern California companies they are like cockroaches. One dies. Another opens up. Their D rated BBB record
MEDIOCRE/AVERAGE ONES -- RESPECT GIVEN BY THEIR LENGTH OF TIME IN BUSINESS AND THE MAINTAINING OF DECENT BBB RECORDS. HOWEVER, MY FIRST HAND EXPERIENCE HEARING FROM EX-CLIENTS LEAVES SOMETHING TO BE DESIRED.
1. Omni Financial -- Broomfield, Colorado and Vero Beach, FL. , since 1985(?) see - . They get points for being around a long time. Their BBB record is suspiciously clean (see comments from ex employee at the end of this posting). But their cold-calling of tax liens borders on harassment and fear-bating at times. Read my story on that here: Cold Calling of Tax Liens. Their ex employees have also spawned quite a few companies in Colorado who also do cold calling on tax liens - Summit Tax (now deceased, see above) , 2020 , Mackinaw Tax and Clear Creek Consulting for instance. Their BBB record contrasts sharply with some experiences I've had with their ex-clients and their cold-calling strategies. I recall vividly about seven years ago calling Omni with one of their client's who had paid them nearly $10,000. Yet the company was asking for more money. In a conference call, I pleaded with them to finish the guy's case (I didn't want his money). Their surprising BBB record is here: BBB - Omni, Colorado .
Omni Financial, Vero Beach, FL -- since 2002. According to the ex-employee poster below -- this is the 1040 and personal representation division of the two Omnis. The former deals with business cases only. I have some mild respect for this division as they refunded a client of mine $10,000 who had poor service with them. The strategy we used to get the refund is illustrated here: Getting Refunds from Tax Relief Companies Their BBB record --BBB - Omni in Florida
2. Tax Defenders - Chicago -- They also get points for being around a while. I haven't heard about them in a while. I suspect their marketing is down. Their BBB record isn't so bad either. BBB record -- Tax Defenders
3. Roni Deutch -- Sacramento, CA -- They deserve credit for being around a while and for a good BBB record. However, they run into a big problem that most of the companies here have -- their salespeople are NOT licensed professionals -- I have numerous examples throughout my career of hearing strange , completely wrong information from their salespeople. I also understand that their customer service and follow thru leave something to be desired. More on Deutch from my blog here: Deutch -- Advertising Heavily on Net
4. Tax Resolution Services, Encino, CA - I used to have a more positive opinion of them. Read my entry here: Tax Resolution Services - Comment But you could do a lot worse. They have been in business for quite some time. BBB listing - Tax Resolution Services
DECENT ONES:
1. 2020 Tax Resolution -- Broomfield, Colorado -- I think these folks might be decent. However, the fact they are ex employees of Omni (above) does leave me a little reserved in my judgement. But on the other hand, I know that they did refund money to a client of mine who wasn't satisfied with their service. With all this said, their BBB record is excellent: BBB record
2. etaxes.com -- San Mateo, California -- Decent people/person - Steve Kassel, Enrolled Agent, who also strive to ward people from bad tax resolution scams. BBB Record - etaxes
3. WASHINGTON TAX SERVICES, Seattle, Washington, open since 1989 -- This is my company. We are 21 years in the business. Our BBB record is here: BBB record - Washington Tax We also advertise as National Tax Relief -- (But don't confuse us with National Tax Relief in Tustin, California who is F rated and who stole our name. Although we appreciate their free advertising for us.)
4. Colonial Tax Consultants, Denver, Colorado started 2004. Wow, Colorado has a lot of tax resolution companies. However, this small operation is dedicated to good practices. One of their licened tax professionals did email me to explain about their dedication to good customer service, etc. Their BBB record is decent also: .BBB Listing
NEW TAX RESOLUTION COMPANIES - WE'LL SEE!
1. Titan Tax Relief, San Diego, CA My understanding is these guys are stragglers from the deceased Strategic Tax (see deceased above). They say they've been open since 2004 but I don't think this is accurate. A colleague says they started in 2009. Here's their BBB record: http://www.la.bbb.org/Business-Report/Titan-Tax-Services-100069343
2. JG Tax Group, Deerfield Beach, FL. This company certainly has the makings of a good company. They are staffed by Ex IRS employees. They are pretty new though. I have written about them in previous postings complimenting them on playing a watchdog (like me) on bad tax resolution companies. BBB record: BBB - JG Tax Group
3. Tax Tiger, Sacramento, CA. I think this company is very small. Their BBB record which lacks any activity at all also demonstrates their small size: BBB record -- Tax Tiger
4. Joe Mastriano, CPA, Houston, TX. I like this guy's website: http://www.taxproblem.org/ But I don't like his D plus rating at the BBB: BBB record
5. Clear Tax Relief -- address - unknown. This website is a "lead generator" that routes "leads" to prospective tax resolution companies. We aren't one of the companies getting the leads. http://www.cleartaxrelief.com/aboutus.html
6. Premier Tax Solutions, Los Angeles, CA. I know nothing about this company that I found on google. But their BBB record has been open since 1999 (?) is eerily lacking any activity at all: BBB Record - Premier
7. Clear Creek Consulting, Inc., Louisville, CO. I think Clear Creek like it's progenitor-- Omni in Coloardo (see above) - also does a lot of marketing by cold calling tax liens. This company has been in business since 2003 or so their BBB record says : BBB - Clear Creek Tax Consulting
8. IRS Tax Settlement -- address unknown. Another creepy company with no listed address and a deceptive advertisement about their BBB rating: IRS Tax Settlement. Buyer beware. NO BBB listing (in actuality).
9. Blue Tax -- This website like Clear Tax Relief (above) is a lead generator. http://www.bluetax.com/index.html Buyer beware again.
10. William McConnaughy, CPA. This guy has a great website. I'd prefer an Enrolled Agent over a C.P.A. but I like the way this guy presents himself. OK. I am jealous. his website
11. Freedom Tax Relief, San Mateo, CA - since 2003. I don't know much about these guys. They advertise heavily on the internet. However I am placing them here because they have a C rating after 7 years of business. I am skeptical, but here's their BBB record: C rating - Freedom Tax Relief
12. Limon Whitaker and Morgan Tax Advisors, Beverly Hills, CA, since Feb. 2008. These guys send out a very clever mailing to people with tax liens. It looks like a notice from the IRS. It says "IRS WAGE GARNISHMENT PENDING. This is your Final notice ... Very tricky advertising. On a separate note, I am always skeptical when I look on a company's web page under "About Us" and there is no information about the NAMES of their tax professionals: Enrolled Agent, CPA or Attorney. That is the case with this company: see here: Limon Whitaker Web Site Furthermore, based on this company's 2 years in business, its location in the "lion's den" of BAD tax resolution companies, L.A., and it's deceptive advertising, I don't think things are going to go well for people that hire this company.
13. Instant Tax Solutions, Idaho (?), since 2004. Their website says it all: actually: it doesn't say anything!. No address, no names, no licensed tax professional's names. Their ads are all over the internet. Their Website Looks like another "fly-by-night" company that threw about $15,000 at internet advertising. Their BBB record is absent of any activity. I would really avoid hiring a "GHOST." You want to know that there are truly live people working for the company. For all I know it is NOT a live company and a lead generator for other companies.
14. Taxcut 2010, Lafayette, CO, ?? or New Century Consulting in Boulder, CO: One of the many offspring of Omni Financial in Colorado that cold calls tax liens. I don't have a lot of respect for this practice. Their website: Taxcut 2010
15. National Tax Solutions, Port Richey, Florida This company has a C minus rating at BBB BBB record - National Tax Solutions, Inc. It is telling why they get rating that they do " they company can't be located and is unpursuable." This company does look like a fake fly by night type of operation that has a fakey/creepy website : http://www.national-tax-solutions.com/
A Case Example: How Tax Resolution Works
Tue, 05/25/2010 - 14:33So you have a tax problem and are interested in paying a tax professional to represent you. How does it really play out? What does the process of hiring a company like Washington Tax Services look like?
I thought I'd illustrate a case of an actual client so you can see how it works. The client I speak of lives in Fresno, California. He hired us in October of 2009. He paid Washington Tax Services a flat one-time fee of $1100.00 for us to represent him before the IRS. He owed the IRS $60,000.00 for unpaid 1040 taxes for every year 2003 thru 2008. His case was in Automated Collection Systems (ACS) of the IRS.
Before contacting ACS, a staff member contacted the Tax Practitioner Hotline (TPH) to find out what the client owed and whether there was any returns unfiled. All of the balances were noted. The client had NOT filed 2009 yet and it was conveyed to him to do that quickly as he expected to owe taxes again.
In October, I contacted the IRS on his behalf using the Power of Attorney form. After giving the IRS a financial statement for this client (which was compiled from a questionnaire we sent the taxpayer), the IRS agreed to consider giving the client "currently not collectible status." The IRS wanted him to get loan denial and application letters (important to have both) from the IRS showing his inability to access the equity in his house to pay them. The IRS gave us until November 2nd to provide the documents. Client was delayed in getting documents to us until November 5, 2010. In that week, I recontacted the IRS with these documents. The IRS person indicated to me that the case would be put in "Uncollectible Status" pending managerial approval. Key point: client would have to pay their 2009 taxes due on April 15th in full.
As I never heard from the manager, I can assume that the IRS placed him in uncollectible!
Key provisions of Uncollectible status:
1. The IRS will discontinue all collections against you for the debt.
2. A tax lien will be filed against you in case you sell property.
3. Your future tax refunds will be applied against the debt.
4. If your circumstances change -- improved income, etc., the IRS can reopen collections against you.
5. If the IRS does NOT collect against you, the taxes will eventually expire (10 years after the taxes were originally assessed).
Please call me at 1-866-525-7302 if you want to discuss how I would resolve your tax problem thru representation. Jay Freeborne, Enrolled Agent, Washington Tax Services.
Finally: Taxmasters Sued By Texas Attorney General
Sat, 05/15/2010 - 07:30Well, you have to be grateful that justice sometimes works in our country: as of May 14th, 2010, Taxmasters is being sued by the Texas State Attorney General for misleading customers and unlawful conduct: http://houston.bizjournals.com/houston/stories/2010/05/10/daily38.htm
Sometimes the bad guys lose. I have been blogging about Taxmasters over the last year based on what I have heard from potential clients who have informed me about them. Here are my previous entries about them.
March 2010 on Taxmasters
March 2010 on Taxmasters #2
March 2010 on Taxmasters #3
February 2010 - Taxmasters and JK Harris Horror Shows
I predicted/hoped for their investigation by authorities here -- December 2009 - Taxmasters of Houston TX --
Offer in Compromise Accepted for Home Owner with $100k in equity for $1600!?
Wed, 05/12/2010 - 12:58It's safe to say that if you try to settle with the IRS, your minimum Offer is going to be the value of your house multiplied by 80% minus your mortgage. For example, a $200,000 house with a $150,000 mortgage would be valued at $30,000 for your offer (200k x 80% minus 150k = 30k).
However, as the story I going to relay will explain, sometimes the IRS will waive the equity in the house for Offers IF there is financial hardship.
In the case we got accepted this week, the lady had a house worth $140,000 and a $40,000 note against it and her Offer that was accepted was $1600.00. Wow. In this situation, the IRS didn't see that the equity was accessible due to her minimal income and exhaustive expenses.
Not a bad deal.
Tax Resolution Company in NC: Effectur closed in 2009
Tue, 05/11/2010 - 11:34I found the following to be an excellent article regarding the demise of Effectur, a tax relief company based in North Carolina. It shows the pitfalls of marketing oneself nationally as a tax resolution company -- how expensive that really is and it also ties in to the drying up credit for these services which we all have experienced in the last two years. Here's the link:
http://triad.bizjournals.com/triad/stories/2009/10/12/story2.html
The following links are also interesting showing this company's last efforts to stay in business:
http://www.prlog.org/10054418-effectur-reasserts-integrity-in-tax-debt-resolution.html
http://accountingproblems.blogspot.com/
Roni Deutch Company in California - Too Big for their Britches?
Sun, 05/02/2010 - 22:19As someone who has been competing with Roni Deutch for tax representation clients since 1997, I will say this: they are obviously not a fly-by-night organization. They make some attempt for legitimacy (albeit barely), maintaining a mediocre BBB record - Roni Deutch BBB record - California . The biggest problem with Deutch is their size and that their fees are on the high side.
Their size is a problem because you have "sales people" on the front lines who don't know a lot about the nuances of tax law. I know this based on many experiences of talking to their ex-clients, but most concretely, from briefly interviewing an ex-employee of theirs. He was shocked when I told him that taxes are discharged in bankruptcy. "Really?!" He laughed and said "we never tell people taxes are dischargeable in bankruptcy." I have also seen incidences where clients Offers aren't filed correctly.
Nonetheless, they deserve some minor kudos for being around since the '90's (like us). But they still have 274 complaints at the BBB in the last three year cycle (see above). And, as I said, it is difficult to provide quality analysis and representation when you have TOO much volume. They will be getting more of that volume as I have seen new internet ads all over (including the New York Times!) Interestingly enough, I stumbled upon this story from the New York Times in 2006 when Googling "Deutch and NY Times" - Deutch settles with NY State Consumer Protection for 300k
If you want to talk to a tax professional and NOT a "salesperson," give me a call at 1-866-525-7302 between the hours of 9am to 5pm PST or email me at jfreeborne@watax.com
So your BBB record is bad....why not start a new record?!
Mon, 04/26/2010 - 10:15Well that's what Associated Tax Relief in Los Angeles is doing.
Hmm. Which BBB record would you refer your clients to?
Associated Tax Relief, Inc. F rating
or
Associated Tax Resolution (same company)A minus rating
Now there's a good trick: instead of doing good customer service and keeping a good BBB record, just create a new BBB record when your old record is polluted with complaints. Wow: talk about a new low for tax resolution companies. I was wondering why there were 116 unanswered complaints at at Associated Tax Relief, Inc. !? Now, I am clear: they are abandoning that BBB record for a new one! Laughable.
(I thank my latest client in Georgia for showing me this contradiction. Furthermore, this client was quoted a $4000 fee! for a service that I am providing for a $1200 fee!)
Fees for Tax Representation -- What's Reasonable?
Fri, 04/23/2010 - 13:02I just got off the phone with what might be a new client in Oregon. She read my blog and decided to give me a call.
The firm that she spoke to previously was Tax Defense Network (TDN) based in Jacksonville, Florida. TDN has an A PLUS rating at the BBB. Commendable. However, they had been in business since 2007 so who knows how long that rating will endure?
Nonetheless the most important issue is what they charged: $5000.00 to represent this client on her 1040 issue with the IRS. This taxpayer owed for $40,000 to the IRS and wanted straightforward representation. Their case was NOT assigned to a Revenue Officer and probably was in the early stages of collections.
$5000.00 is way too much for a very simple case. My fee? $1550.00 to handle everything.
Depending on the complexity of a 1040 balance due case, my fees will span from $875.00 on the low end to $4000.00 on the high end. I would charge $4000.00 on a case that had a high level of complexity: a. a very high balance due, b. Revenue Officer assigned, c. Many different business entities. d. balances assessed are NOT accurate, etc.
The A plus rating of Tax Defense Network is deceptive in this case. The $5000 fee is highway robbery.
Don't Take "Currently Not Collectible" Lightly !
Wed, 04/21/2010 - 11:11Today I received a notice from a client who is already in currently not collectible. I had his case placed in currently not collectible about a year ago. The letter from the IRS indicated that he had NOT filed his 2008 return. This is seriously problematic.
Not filing and paying your taxes while you are in currently not collectible COULD kick you out of that status.
I called him and told him to NOT mess around. To file his return immediately.
Currently not collectible is fantastic. You pay nothing. Just be a good taxpayer going forward. The debt will eventually expire.
Email Letter of the Day from Client in Los Angeles, CA
Tue, 04/13/2010 - 13:03Once again thanks for:
1. Completing my return on time !
2. Doing what you say you're going to do.
3. Conducting your business and self in a businesslike manner.
4. Treating me as a valued client.
5. Not taking me for a ride.
6. Not taking my retainer and buying a vacation home with it.
7. I hope you are around next year when I need your services.
8. Your ethics and professionalism is rare these days.
Gary, client since 2003
Tax Professionals -- Using the Better Business Bureau as a resource
Fri, 04/09/2010 - 17:32I can't blame anybody who wants to use the Better Business Bureau to check out a company who offers tax resolution services. It is a pretty nasty bunch that advertise on TV and radio.
I would organize tax resolution companies into three categories based on the research of their BBB records:
1. Decent and open for business.
2. Open for business and dangerous -- high volume, sales people, watch out -- buyer beware. All of these companies get a "F" grade.
3. Closed? If there are unanswered BBB complaints, this is a sign that the company is defunct? or a company that does NOT care anymore. All of these companies get a "F" grade.
CLICK ON THE LINKS BELOW FOR THE BBB RECORD:
1. Decent, respectable and open for business:
Washington Tax Services -- BBB record that would be MY company.
ETaxes.com -- San Mateo, CA - also a respectable company.
2. Open for business and DANGEROUS -- high volume, sales people, watch out -- buyer beware.
American Tax Relief -- Los Angeles, CA
Taxmasters -- Houston, TX
Progressive Tax Group, San Francisco, CA (Formerly Innovative? See below)
Nationwide Tax Relief, Los Angeles, CA
JK Harris and Company -- Franchises All Around U.S.A.
3. Closed? These companies have unanswered BBB complaints. This is NOT a good sign. Either the company is closed or just really on the verge of closing? Or they just don't care anymore...
Power Tax Relief - Los Angeles, CA
Tax Incorporated, Los Angeles, CA
Associated Tax Relief, Los Angeles, CA I actually saw these guys on TV last nite!
Advantage Tax Resolution, Los Angeles, CA
Innovative Tax Relief, Los Angeles, CA
National Tax Relief, Orange County, CA -- This is NOT our company!
Examples of Bad Tax Resolution
Tue, 03/30/2010 - 10:54I wanted to chronicle some bad ideas in tax resolution that you will hear if you call professionals who DON'T have a lot of experience in IRS collection cases or by the sales people who ubiquitously populate the firms you see on TV.
1. Filing an Offer in Compromise (OIC) on a 941 debt of an Open Corporation - Why is this a bad idea? First, because the IRS doesn't really accept these except in the rarest of situations. You are frankly better off at closing the corporation and seeing if the debt goes to the grave with the old corporation.
2. Focusing on an Offer (OIC) over Currently Not Collectible -- Sales people tend to get obsessed with the Offer in Compromise program as do their advertisements -- Settle your Debt! Often, getting a debt placed in Uncollectible Status is BETTER than doing an Offer as you don't have to pay the IRS anything! Offers are NOT easy to get. U. Status is easier.
3. Talking about a Penalty Abatement when the Taxpayer doesn't qualify (yet) -- Remember the only way you are going to get penalties off is if you demonstrate to the IRS that you are NOW a good taxpayer. If you aren't filing on time or paying on time, put the penalty abatement off until you are current.
As always, give me a call at 1-866-525-7302 or email me at jfreeborne@watax.com to see what is the best way to resolve your tax problem. Jay Freeborne, E.A., Washington Tax Services
Yes, Yes, Another Taxmaster's Story: My new Nickname for them: "SALESMASTERS"
Fri, 03/26/2010 - 17:50OK folks - hot off the presses. Here is the latest completely inaccurate thing that a representative of TaxMasters of Houston, TX told a potential customer.
This single Dad in Florida owes $200,000 to the IRS. He is just making ends meet. Naturally, he would be getting a big tax refund due to his dependents and Head of Household status -- about $7,000.00. However, when you owe money to the IRS, you are NOT getting a tax refund. Sorry. Even if you file an Offer in Compromise! (However, later after the Offer is accepted, you will eventually get your tax refunds - but NOT the year in which you do an Offer.)
But not according to the rep at Taxmasters. He told the single dad to file an extension and he will get the refund after a settlement is achieved. This is entirely NOT true. Just another fabrication to get the taxpayer to pay Taxmasters $4500.00! (My fee for this poor guy - $1200.00)
These Taxmasters guys are NOT masters of tax law. They are masters of SALES!
Hence, my new nickname for them is SALESMASTERS.
Another Taxmasters Story (Sorry, keep getting new ones!)
Tue, 03/23/2010 - 19:49Ok, Ok, another story about Taxmasters: a person I spoke with tonite hired Taxmasters of Houston, TX recently. He paid them $3200.00. He decided within 24 hours that he didn't want to work with them. Oops -- the money left his account. Not only did he not get a refund, but the manager there threatened to sue him for not fulfilling his contract to pay the rest of the fee? Yikes?
If you get ripped off by a tax resolution company, find the 2848 form that they gave you and please follow my instructions listed here:
http://taxresolutiontalk.blogspot.com/2009/08/getting-your-money-back-from-tax-relief.html
Taxmasters -- Another Comparison Interview
Tue, 03/16/2010 - 08:36Yes, I am beating up on Taxmasters again. How can you resist?
Taxpayer owes $8,000 not $80,000 or $800,000. He has a garnishment on his check. Taxmasters will charge him $3300.00 to resolve his case.
My fee $1000.00 to release garnishment and resolve his simple issue (he was audited by IRS and I will investigate why he owes).
What Tax Resolution do you Qualify for?
Tue, 03/09/2010 - 13:42If you owe back taxes - 1040 or Civil Penalty - 6672 debts, call me at 1-866-525-7302, I will analyze your case and tell you what tax resolution best suits your situation:
1. Installment agreement and penalty abatement.
2. Offer in Compromise - Doubt as to Collectability.
3. Currently Not Collectible.
4. Bankruptcy - Chapter 7 -- do realize I am not a bankruptcy attorney and will send you to one in your area to complete this analysis.
5. Bankruptcy -- Chapter 13.
These are the most common ways most back tax issues are addressed. (941 cases are different and need to be analyzed differently.) I look forward to your call. Jay Freeborne, Washington Tax Services.
