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Tax Resolution Scams On The Rise: How To Avoid Tax Settlement And Irs Debt Relief Scams

admin — Sun, 02 May 2010 10:25:35 +0000

Because the IRS is increasing enforcement to unprecedented levels, there’s been an increase in the number of unethical tax resolution scams preying on people who owe back taxes. This year we’ve already seen rising numbers of consumer complaints about tax resolution scams. In tough economic times, it’s especially important to not ignore IRS problems. Taxpayers must realize that they have to be careful when choosing a tax relief professional to resolve their back taxes and IRS problems.

Here are 9 tips for protecting yourself from tax relief scams including how to choose a qualified Certified Tax Resolution Specialist or expert tax attorney.

Protecting yourself from tax relief scams tip #1: Beware of tax resolution firms that overstate their success rate. One way to protect yourself from an unethical tax resolution firm is to avoid tax resolution firms that overstate their success rate. According to Consumer Affairs, it’s not uncommon for firms to misrepresent their ability to provide tax help. In some instances, companies will misrepresent their staff’s professional skills and experience in addition to failing to provide promised services. It’s important that Americans beware of tax relief firms that overstate their ability to reduce IRS debt. Look for a Certified Tax Resolution Specialist firm that puts potential clients through a rigorous in-depth interview process to find out if they qualify for an IRS tax settlement – and will not allow a client to retain their tax resolution services unless the taxpayer is a legitimate candidate for tax relief. This ethical and honest approach to tax resolution will guarantee that the Certified Tax Resolution Specialist you choose, chooses you too. Protecting yourself from tax relief scams tip #2: Know what questions to ask before you hire your tax representation. There are a number of important questions to ask your prospective tax resolution firm before hiring them on as your IRS battle-mates. In order to ensure that your tax attorney will be working in your best interest instead of simply charging you enormous service fees, you will need to treat your research process as you would a job interview. Here questions to ask before you hire your tax representation. Protecting yourself from tax relief scams tip #3: Hire a firm that is responsive to your needs. A Certified Tax Resolution Specialist is responsive and will make sure you don’t pay a penny more than what you owe. A Certified Tax Resolution Specialist will take over all communication with the IRS and make sure you stop clocking interest and penalties. Unfortunately there are tax resolution scam companies out there that won’t take you calls, don’t respond to the IRS and make your back taxes troubles much worse than if you never hired the unethical tax relief professional. In addition to having a multi-year track record of success, Certified Tax Resolution Specialists have to keep up both continuing education and a high success rate with a wide variety of tax cases.

Protecting yourself from tax relief scams tip #4: Qualified tax resolution professionals provide immediate relief through Power of Attorney. When you get tax help from a Certified Tax Resolution Specialist, you get the benefit of them working completely on your behalf. The Certified Tax Resolution Specialist will file a tax Power of Attorney (POA) with the IRS. This will provide you with immediate relief because from this point on the IRS will be required to contact your Certified Tax Resolution Specialist instead of you. If they should happen to contact you, all you need to do is politely request that they contact your Certified Tax Resolution Specialist directly and provide them with the phone number. A separate POA may be required for any State problem.

Protecting yourself from tax relief scams tip #5: Beware of firms that guarantee results without even seeing your information. One of the hallmarks of the tax resolution scam is someone who promises you a specific outcome without an in depth review of your specific tax matter. Every situation is unique and the IRS agent on the other side of the table is always an unknown factor. There are no guarantees in life. Anyone who gives you a guarantee is unrealistic and unprofessional at best, or a tax resolution scam at worst. A Certified Tax Resolution Specialist will get to know their client’s specific problem and educate them on tax resolution options for their specific case so that they have realistic expectations.

Protecting yourself from tax relief scams tip #6: Know when to work directly with the IRS to resolve back taxes. If your back taxes debt is less than $15,000, most Certified Tax Resolution Specialists won’t take you as a client. A Certified Tax Resolution Specialist wants to create a win-win situation, where the taxpayer gets needed tax relief and the Certified Tax Resolution Specialist earns their fee. If your back taxes debt is relatively small (less than $15,000), most often you can work directly with the IRS to resolve you back taxes.

Protecting yourself from tax relief scams tip #7: Understand the costs associated with resolving your specific IRS problem. Tax resolution scams will often low-ball their representation fees, quoting a seemingly low cost but neglecting to you tell you that the average Offer in Compromise takes 6-10 months. Additionally, because a high percentage of Offers are rejected by the IRS, these cases often have to go to the appellate level – at which point these firms will then turn around and hit the client with additional appellate representation fees. Look for firms that charge a fixed fee for their tax resolution services and can explain exactly what will be involved with achieving a settlement for your specific IRS problem.

Protecting yourself from tax relief scams tip #8: Know the truth about Offer in Compromise tax settlements. A Certified Tax Resolution Specialist has a track record of success with the IRS. You get that success rate by negotiating realistic Offers in Compromise with the IRS. An IRS tax relief scam might give you an impressive number of Offers In Compromise they have filed, but the number of OICs a tax resolution firm files is not what matters. Find out what percentage of their Offers in Compromise are accepted by the IRS (their success rate). Because Certified Tax Resolution Specialists are usually realistic with the cases they file, they often have the best track record for getting Offers in Compromise accepted.

Protecting yourself from tax relief scams tip #9: Know the difference between a tax specialist and a Certified Tax Resolution Specialist (CTRS)? Tax specialist has no meaning. What matters is being a Certified Resolution Specialist. Certified Tax Resolution Specialists are certified by the American Society of Tax Problem Solvers. The ASTPS is a national, not-for-profit organization of professionals who specialize in representing taxpayers before the IRS.

In order to obtain this certification, licensed professionals (tax attorneys, CPAs and enrolled agents) have to take and pass an exam administered by the ASTPS, prove directly related experience in the tax relief niche (two years), and be a CPA, tax attorney or enrolled agent in good standing with their respective state that licenses/regulates them. A Certified tax Resolution Specialist is uniquely qualified to successfully solve IRS problems – from negotiating tax settlements and IRS payment plans to removing or modifying IRS and bank levies - day in and day out. So whether you are looking for a tax attorney or a firm comprised of attorneys, CPAs, and enrolled agents you can research the ASTPS site and click on Find a Tax Problem Solver to determine if they are Certified Tax Resolution Specialists.

To combat tax resolution scams, you’ve got to arm yourself with knowledge. But your best insurance to protect you from tax resolution scams is getting someone you know you can trust on your team.

For more information on how to resolve your back taxes and remove IRS bank levies, visit www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS.

Michael Rozbruch is one of the nation’s leading tax experts. A Certified Tax Resolution Specialist (CTRS), licensed CPA and the CEO & Founder of Tax Resolution Services. He helps individuals and small businesses solve their IRS problems and is dedicated to educating the public on tax planning and other strategies for managing their personal and business finances.

Your New Year Resolution: Printing New Business Cards

admin — Wed, 24 Feb 2010 10:37:06 +0000

It is the New Year and it is time to throw out the old and welcome in the new. If you have your old business cards still in your wallet, maybe it is about time to throw them out and make new color business cards. In this dynamic business atmosphere it pays to always have a fresh face. New color business cards will tell people that you are always up to date and in with the times. So, it is always a good practice to print business cards with new designs periodically. Now, do you know how to redesign your business card? It is very simple. Follow some of the tips we have listed here and you will be ready for a color business card makeover. Hopefully this will help you show a fresh face to current and potential business contacts. Change your colors The best and easiest thing to change in your business card is its color. If you are still using a plain white business card, then you are indeed behind the times. The most effective and eye-catching business cards today use different colors. If you look at your collection of business cards you will always spot the ones that are not white right? So this new year, treat yourself to something new and change the color of your business card. A simple color change may be from white to black. Black business cards with gray, silver or white lettering has elegance all to its own. Black is always popular and you can never go wrong with it. Other formal colors include light blue and light green. If you want be a bit adventurous you can also try Red or Yellow business cards. However, use these colors carefully as some industries might not take you seriously with such bright and flashy colors. Switch to new and popular designs Next, you can also try to redesign the overall layout of your business card. You can do this by looking through the new and popular business card template designs that are available this year. Just look for business card templates in your search engine and browse through the myriad of designs online business card printing companies have to offer. Of course you can also create a color business card design of your own. You can try changing your business card’s original font, its text size and the overall placement of its elements. Again you can refer to several examples that can be found online for inspiration. Find a new motto Now, if you have a motto or maxim in your print business card, you can also change this for the New Year. If you are not particularly attached to your tagline then this is a good opportunity. Taglines are a good way of remembering a business card. If last year your business cards were not that effective, then maybe a new tagline might help. Maybe your tagline was boring, so now you can change to a catchier one. If you can, try and integrate a few rhymes into your business card tagline to make it more memorable. Also, word techniques like repeating first letters also work here. For example your tagline can say “the best bargain baggers in the business”. Redistribute Lastly, once you make your new color business cards. Do not forget to redistribute them. Since you may have updated your contact numbers since last time your printed your business cards this is a great opportunity to re-establish a few past contacts. They may find your new and fresh business cards appealing and you might get some new business opportunities. Great! We hope you can use these tips for you new business cards this year. Remember that your business cards should always be dynamic. The world will change always, so always change with the world. For comments and inquiries about the article visit: Color Business Cards, Print Business Cards

Lynne Saarte is a writer that hails from Texas. She has been in the Internet business for some years now, specializing in Internet marketing and online strategies.

Questions to Ask Before Hiring a Tax Attorney, CPA or Tax Resolution Specialist to Solve Your IRS Tax Problems

admin — Fri, 19 Feb 2010 10:33:10 +0000

Finding a tax professional to solve your tax problems is like the end ofÂ Indiana Jones and the Last Crusade. Make the right choice and all your wounds will be healed. Make the wrong choice and youâll be turned into a screaming shriveled skeleton. Whether itâs a tax attorney, certified public account or certified tax resolution specialist (CTRS), itâs important to choose your tax representative wisely.

If youâve got tax problems, like delinquent tax returns, back taxes, payroll taxes or other tax collection or audit issues, your first instinct may be to open up the yellow page or Google or ask around for recommendations. Great, now youâve got some names, but how can you find the right expert to give you the IRS help you need?

To avoid paying a high hourly rate unnecessarily, go through this tax attorney/CPA/tax resolution specialist interview checklist first. This checklist will help you weed out the tax relief scammers, as well as the merely inept attorneys and CPAs out there who will leave you with their high fees, your original tax debt, plus additional penalties and charges.

Print out this article and ask the following questions.

Before you face a tax attorney or tax resolution professional, first look in the mirror to get a handle on your tax problem.

Answering these questions will help you decide what kind of tax help you need.

When you get tax problem resolution professional recommendations from friends, you need to compare apples to apples. While a CPA will have a cheaper hourly rate than a great tax lawyer, they canât do what a good tax lawyer can. A great CPA can put your tax records in order so you can get a true accounting of the âhistoricalâ road just travelled, but they probably shouldnât take you into battle with the IRS because they donât spend all their time negotiating tax resolutions the way specialized tax professionals do. You need someone who battles the IRS for a living, who has learned the latest laws and knows all the secrets to helping resolve your tax problem.

Thatâs why some tax resolution firms offer a team of expert tax professionals to help you get the best possible outcome for your tax settlement.Â So before you rack up those high hourly charges, you need to make sure you are talking to the right tax professional who can do the job for you. You will be hiring this tax attorney, so treat your initial consultation as what it should be, a job interview.

Questions to ask a tax attorney, CPA or certified tax resolution specialist:

About the firm:

1. How long has they been in business solving IRS problems? The longer they have been handling negotiations with the IRS the better.Â A lawyer or CPA firm may just do tax law on the side and not be dedicated to knowing the ins and outs of IRS negotiations.

2. How many tax attorneys do they have on staff? (Some firms are only CPAs, some are nothing but former IRS agents, some are straight law firms with only one or two tax attorneys). If you donât do tax resolution day in and day out, you donât know all the loopholes, tricks and tools. Look for someone who is a certified tax resolution specialist, they have to take a special exam and have a number of years of experience and continuing education in this field. There are only about 200 in the entire country who actually do this as a living.

3. What is their success rate with tax cases? Donât take a generic number here. Ask about the success rate for cases like yours. Donât expect a perfect score. For example in most cases the Offer in Compromise is a starting offer. Only about 2% are immediately accepted by the IRS. The more important number is comparingÂ cases like yours. What is the total dollar amount negotiated in settlements divided by total dollars in tax, interest and penalties owed? In short, how much did these tax attorneys save their clients?

4. Do they offer a guarantee? Run away if they do. No one can guarantee anything.

5. Does the law firm or tax resolution company want all the money up front? If they do, run. Once tax professionals have your money, they have no incentive to go the extra mile for you. If your tax attorney, tax resolution specialist or CPA wants some “good faith money” thatâs fine.

6. Do they give you a high pressure sales pitch? If they are pushing that hard, thatâs a warning sign to stay away. In many cases when you get a sales pitch you are talking with a salesperson, not a tax attorney or tax resolution specialist who can help you.

7. Check out your potential tax attorney or tax resolution firm with the Better Business Bureau, but keep in mind the volume of people the company serves. If the company has 20 complaints over three years but has served 5,000 clients in that time, thatâs a 0.4% failure rate, or said differently a 99.6% satisfaction rate. Even that can be misleading because the BBB only tracks complaints, not resolutions. Even if the client got a full refund and 100% satisfaction, the client canât withdraw their complaint once it is filed with the BBB. You could also Google their name with the words âcomplaint,â ârip-offâ and âscam.â And if they are a tax attorney, check with your stateâs bar to see if they have any complaints against them.

8. Ask for the names of the people who own the law firm or tax resolution company. If your contact is elusive on this, run. Bottom line, you need to know who runs the show. You need the name of the owner, NOT the senior tax attorney. If your IRS case goes south or the tax attorney handling your case is a problem, you need to know exactly who you can complain to or who to seek redress from.

9. Find out the name of the tax attorney or tax resolution specialist who will be taking your case. Find out how quickly they respond to your inquiries. Do they answer their phone or email promptly? Ask for references of satisfied customers for that specific tax attorney or tax resolution professional. (Given the confidentiality of tax resolution work, a personal reference for a tax attorney might be hard to come by.)

10. Does the tax attorney or tax resolution firm have experience in multi-jurisdictional issues? Because the IRS is a federal agency, there are three people permitted to practice before the IRS. You have to be an active licensed member of the state bar, a certified public accountant actively licensed or an enrolled agent. No matter where they live, they can represent the taxpayer before the IRS is all 50 states.

11. Will this tax attorney or tax resolution specialist go with you to an in-person audit? Although 90% of tax resolution work is done over the phone, electronically or via FedEx, sometimes you need a tax attorney to literally hold your hand in an audit. But donât choose a tax attorney just because they have an office near your home. An accident of geography doesnât mean they are the right tax attorney for the job. In many cases a national firm such as ours can make sure you never have to darken the door of an IRS audit.

12. How can they help you if the IRS wants to come to your home or business?

13. Is the firm just a tax form filler? Just because they prepare a lot tax returns doesnât mean they are ready to battle the IRS. There are a number of tax resolution and âtax attorneyâ scams that do nothing but type up an Offer in Compromise and just mail it to the IRS. Thatâs all the service these âtax attorneysâ provide. These companies are at best, a waste of time and money and at worst, a one-way ticket to big trouble.

14. What are their prices? Donât be penny-wise but pound-foolish. Donât just lock onto a tax attorney or tax resolution firmâs low price. Look for value and the number of services you get. Will this tax attorney or tax resolution professional give you preparation of all IRS forms, all backup documentation, and all negotiation with the IRS? When you meet or interview your tax resolution specialist or tax attorney ask them:

1. Where did this tax attorney or CPA go to school for tax resolution? How current are they (how much continuing education is this tax attorney taking)?

2. How long has this tax attorney or tax professional practiced tax resolution, not straight tax law but real battle with the IRS for tax resolution?

3. What percentage of their jobs are tax problems like yours?

4. Who is their direct supervisor? What is their contact information?

5. Does the individual tax attorney, CPA or tax resolution specialist have references?

6. What is his/her personal success rate? (How many Offers in Compromise settlements have been accepted and what was the negotiated amount owed versus the initial amount of taxes owed and penalties? In short, how much has this individual tax attorney or tax resolution professional saved clients? How does this tax attorney or tax resolution specialist compare to the rest of the firm: above average or below?)

7. What sorts of releases for tax liens, levies, etc. have they achieved? How fast?

8. What sorts of penalties (like mine) have this tax attorney/ tax resolution specialist gotten waived?

9. What sorts of installment agreements in situations like mine has this tax attorney or tax resolution professional negotiated and what was the payment schedule? Once you are convinced you have found the tax attorney or tax resolution specialist that can help you, youâll feel like youâve found the Holy Grail. Choose wisely.

For more information on achieving a tax resolution for your IRS problems or back taxes, visit www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS.

Michael Rozbruch is one of the nation’s leading tax experts. A Certified Tax Resolution Specialist (CTRS), licensed CPA and the founder of Tax Resolution Services. He helps individuals and small businesses solve their IRS problems and is dedicated to educating the public on tax planning and other strategies for managing their personal and business finances.