Tax Resolution and False Information
I’ve heard and read many inaccurate, false statements about Tax Resolution/Debt Relief. Being in the accounting industry for the past 17 years, and more recently being in the niche of Tax Resolution, I recently found the need to clarify and jump to the defense of Tax Resolution and what it really consists of. There are many private/boutique, Tax Resolution Firms and Tax professionals that actually do care for the taxpayer and want to help resolve their tax issues. In South Florida, most of us know each other either from continuing education training, seminars, or mutual relationships in this niche. We help and guide each other when it comes to providing the best for our clients. No one is better or worse and this is a very stressful industry from dealing with complicated IRS agents to dealing with (some) complicated clients and complex cases, but also rewarding when you can settle a $300,000 case down to $20,000, not so sketchy after all.
Scam or Not?
I completely disagree with Tax Resolution being a scam. Not because I own a virtual Tax Resolution Firm but because the term SCAM doesn’t derive or correlate from the word HELP. Now the word IGNORANT accurately describes the people spreading false information on the web and social media. Don’t take it out of context now, ignorance can be cured with knowledge if you open your mind, keep reading!
How to Know the Difference – Tax Resolution Help and Tax Resolution Scams
Does the misused, word, SCAM maybe come from how large Companies advertise? Or the marketing terms that are loosely used in advertisements, such as “The NEW, Fresh StartProgram”. Rewind, IRS started this back in 2011 to help STRUGGLING taxpayers, which is also known as an OIC “offer in compromise”. The problem doesn’t arise from what is being said but rather what is being done for you, while you’re being cornered and bullied by the IRS. BIG COMPANIES in any field, industry, or niche, usually are trying to capitalize off of the poor, struggling, or ignorant. That’s how it was, is, and how it will be, end of the story. Now, are you smart enough, to distinguish the difference between, who wants to help you or who sees you as a walking dollar sign?
“I can DIY my Tax Relief Case, I can use that money to pay the IRS, what a SCAM!”
Of course, you can, but, will you? If you DIY your case and you owe under $10,000.00, and you have the money to pay it, you know you owe it. Then, YOU DONT NEED ANYONE, call the IRS (good luck with that, hold times tend to be 60-90 minute hold times and maybe a couple of disconnections in the process) or go to www.irs.gov, set up an installment agreement, and keep it moving, BYE Felicia.
Unfortunately, it’s not that easy for others, If you owe over $10,000 and range up to the millions in tax debt, it is advised that you seek professional help from a professional that SPECIALIZES in Tax Resolution. DIY in this scenario is not that simple, and when you have an IRS Revenue Officer knocking on your door, breathing down your back and placing a lien on your car or home, or even better a levy on your bank account or payroll wages. You will need a Tax Resolution Specialist on your side unless you’re well adverse with the IRM “internal Revenue Manual”, IRC “Internal Revenue Code”, Circular 230 (if you are a professional), and current with the many Tax Law Changes that happen daily, Yup, I didn’t think so!
“If they got into trouble with the IRS, it’s because they are Stupid, Lazy, and trying to defraud the government!”
Again, Not my words, but this is another example of the common misconceptions by the ignorant, that so quickly place judgment on others. I’m not saying for some people that statement isn’t accurately true, but most of the time it isn’t related to any of the above. You never know what someone is experiencing or has experienced, people have lost family members, businesses, jobs, have had health issues, and many other life-altering events that occur. An IRS case can turn into you owing $100,000, from one wrong tax election. Even taking advice from a rouge accountant, that told you it was legal to file something on your tax return and come to find out you getting letters from the IRS that it was actually illegal. This happens every day, there are many events that can alter someone’s life instant, and do you think with all of this going on your going to be able to DIY your case? Be real with yourself and your expectations! Don’t be so quick to pass judgment on your fellow neighbors.
How I Know, Tax Resolution is not a SCAM
The stigma in Tax Resolution is that we are all out just for the money and the client can do the work themselves and I have come across this mostly in the Tax Resolution niche. Maybe it’s true with some firms, but don’t label every firm. In any business I’ve ever started, I always asked myself: Can I HELP someone, does it offer value and how will I be the BEST in my field. When I got into the Tax World, I wasn’t fulfilled just doing Taxes. Honestly, I love talking to people, planning, and helping them navigate the tax maze, legally. But, I didn’t feel like I was helping and most people want to DIY everything until they have a tax problem. So I decided to go full-on in Tax Resolution, I enhanced my prior accounting and tax knowledge and I went for my IRS Enrolled Agent License and educated myself in Tax Resolution by attending the best courses buying the best software, and learning everything I could. Scam, Not likely!
“Tax Resolution is too expensive, It’s not worth it”
Cheap is not always the best solution and too expensive isn’t either. It’s knowing the value you’re going to receive for the service you’re paying for, I will never give my Firm’s services away for free, but my firm will always give more than what is expected and we always exceed our expectations. It’s not a business motto that I use, nor will I ever advertise using that statement. It is the ethical code I live by and what my Tax Resolution Firm provides to all of our clients. There are many firms that also operate this way and you should take the time to get to know the Firm or Tax Professional, to whom you will be paying large sums of money.