Thursday, March 24, 2011

Beware of Some Tax Resolution Companies - Do Not Be Ripped Off

The IRS has come out with several tax bulletins regarding fraudulent tax resolution companies within the past years warning the taxpayers to stay away from scam artists and companies making false claims.

The numbers are going through the roof.

The tax resolution industry for the most part has been turned over to sales people who have worked other business verticals such as mortgage, real estate and credit Counseling1 programs. When their industry changes because of economic reasons or changes due to the federal law, these companies and sales people are forced to find other business verticals to work.  A large number of these sales people have found their way in IRS Tax Counseling2 and Resolution. While many of  them are good persons in general, they have no business working an industry they know absolutely nothing about. Many of these companies are in business today and gone tomorrow and many times with your money.

You can avoid many of these problems if you follow this practical common sense advice:

1. Check the Better Business Bureau report on the Company. If the company is not "A" rated, flee. Beware, many of these companies change names every couple of years.

2. Find out if there is a professional Tax Attorney or CPA on staff. In legitimate companies,  Attorneys and CPA's usually will not lend their names to scam artists. Beware of companies too that sub their work out to third party firms that are not connected with the company.

3. Check out how long the principles have been practicing tax or tax law. Most solid companies will find their principles have been practicing at least ten years or more.

4. Ask if the company guarantees their work. If a company is guaranteeing their work, flee again. No one can guarantee IRS results. If they guarantee your money will be returned if they are not successful, that's another story.

5. Interview the person that may work your case. Ask about his or her credentials and IRS work experience.

6.  Skype the person face to face. Ask if the person has a video conferencing system. You will get a good feel with a face to face.

At the end of the day it is about work history, credibility, and results.

The IRS has come out with several tax bulletins regarding fraudulent tax resolution companies within the past years warning the taxpayers to stay away from scam artists and companies making false claims.

The numbers are going through the roof.

The tax resolution industry for the most part has been turned over to sales people who have worked other business verticals such as mortgage, real estate and credit Counseling1 programs. When their industry changes because of economic reasons or changes due to the federal law, these companies and sales people are forced to find other business verticals to work.  A large number of these sales people have found their way in IRS Tax Counseling2 and Resolution. While many of  them are good persons in general, they have no business working an industry they know absolutely nothing about. Many of these companies are in business today and gone tomorrow and many times with your money.

You can avoid many of these problems if you follow this practical common sense advice:

1. Check the Better Business Bureau report on the Company. If the company is not "A" rated, flee. Beware, many of these companies change names every couple of years.

2. Find out if there is a professional Tax Attorney or CPA on staff. In legitimate companies,  Attorneys and CPA's usually will not lend their names to scam artists. Beware of companies too that sub their work out to third party firms that are not connected with the company.

3. Check out how long the principles have been practicing tax or tax law. Most solid companies will find their principles have been practicing at least ten years or more.

4. Ask if the company guarantees their work. If a company is guaranteeing their work, flee again. No one can guarantee IRS results. If they guarantee your money will be returned if they are not successful, that's another story.

5. Interview the person that may work your case. Ask about his or her credentials and IRS work experience.

6.  Skype the person face to face. Ask if the person has a video conferencing system. You will get a good feel with a face to face.

At the end of the day it is about work history, credibility, and results.

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