Business and Management

Tips To Avoid Getting Screwed Over By A Tax Resolution Firm

The stereotypical sales worm is a used car salesman. However, I'd like to replace that stereotype with a new one: The tax resolution closer. This special type of salesman is turning out to be slicker and more aggressive than your friend at the used car lot.

The Federal Trade Commission and several state Attorney Generals have started cracking down on the unscrupulous sales practices used in the tax resolution industry. You can also get the best tax resolution services from federaltaxresolution.

Tax resolution firms are currently being investigated for a number of bad practices. For example, some firms have been promising acceptance of Offers in Compromise without proper evaluation for eligibility (most people are NOT eligible for this program, for one reason or another).

Other companies have been running credit cards and debiting checking accounts without prior authorization, and threatening that IRS asset seizure action is inevitable if you don't hire their company (IRS seizure of tangible assets is actually very rare these days).

Some companies use threatening and aggressive sales tactics to coerce taxpayers into signing service contracts, and then fail to provide the contracted services. In some cases, no services were provided at all.

Another common practice is to promise actions that have no basis in law, such as promising to have Revenue Officers removed from your case or guaranteeing that your lien will be released. In reality, Federal tax liens are very, very rarely released if you still owe money, even if you are on a payment plan, and the IRS will never release a lien if doing so won't in some way benefit them getting paid.

In order to prevent becoming a victim of such sales practices yourself, here are seven things to look for when considering hiring any tax resolution firm.

Get it in writing. If the firm won't give you a contract, with the services to be rendered explicitly stated, then RUN. Very quickly, in the opposite direction.

Many tax resolution sales closers will promise you the moon, and say anything to get you to sign and send a check, but read the contract carefully. If it's not in writing, it doesn't count.

Know what services are included and what services are not. Does the fee include filing any tax returns that you are missing? Does the service include Appeals that may need to be filed? What about levy and wage garnishment releases, are those included or extra?

Are both of your companies included in the fee, or just the one you initially spoke to them about? These are all very important questions you need to have answered before sending them a dime.