The Mission Statement of the Tax Resolution Blog?

We created the Tax Problem Resolution Blog to aid the average person to become more discerning buyers of tax resolution and tax representation services. Please read the index of articles below to learn more about the tax resolution industry and to assist you in solving your specific tax problem.

Jay Freeborne, Enrolled Agent at Washington Tax Services, open for business since 1989

Tuesday, November 16, 2010

Fees for Tax Representation Should NOT be based on what you OWE!

Just got off the phone with a gentleman in Georgia who owes $216,000 to the IRS based on the IRS filing for him.  Like any individual who owes this kind of sum, he has been bombarded with mailings from tax resolution companies, as well as with "cold calls" due to the fact he has a tax lien against him.

These companies and their salespeople -- many who are described here -- A Survey of 175 Tax Resolution Companies --  have a tendency to see DOLLAR SIGNS when talking to a person who owes this kind of money.  My potential client was quoted fees of $12,000 and $24,000 to handle his case!!! My fee?  $1500.00  Granted, my fee did NOT include tax preparation for him, but really, the amount that you owe really shouldn't add to the workload of the company.  Unscrupulous salespeople are just salivating at a huge potential commission.

As always, when it comes to the tax resolution industry, BUYER BEWARE.

Please call us at 1-888-282-4697 if you want an honest analysis of your tax problem and a reasonable fee. Staff of Washington Tax Services.


Nick Hartney, E.A. said...

Exactly. This industry needs to be cleaned up. I would like to see legislation that only allows a licensed tax professional to quote fees and provide a consultation.

The salespeople in this industry have no risk of losing anything.

You can't sell stock without a Series 7 so why should you be able to sell tax resolution services?

Jay Freeborne - Tax Resolution Issues said...

Well said Nick!

Jassen L. Bowman said...

Really enjoying reading through your blog tonight, you've got some good stuff on here.

I agree 100% on this practice. It's always bothered me that everybody in this industry quotes based on how much is owed, rather than the complexity of the tax case. It's basically like a mechanic charging twice as much to change the water pump on a Lexus ES300 over a Camry just because the car is twice as much (they use the same chassis, engines, and water pump for the same model year).

I operate on more of a menu of services basis, with each service having a certain fee (e.g., $950 for a basic IA or Trust Fund case for one person, $450 for a levy release, etc.).

I know closers that would literally get fired if they quoted $950 for an IA on a $150k liability.

-Jassen Bowman