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Tax Resolution Services

Tax Resolution Services

By BRAD PALMER

These bastards present themselves as being able to “settle with the IRS for pennies on the dollar” as if the IRS is a commercial creditor with no power. What they are referring to is an offer in compromise whereby the IRS does settle tax debt for less than full value. But getting an offer in compromise approved is a long process that can take up to one year. A voluminous amount of information has to be submitted and the information receives intense scrutiny from different people.

Basically, the law is that everyone is supposed to pay their taxes both as a matter of law and as a matter of public policy. In essence, when the IRS forgives a tax debt, it is a contravention of public policy, but one that is permitted as a matter of law.

There is two basis upon which the IRS will approve an offer in compromise: doubt as to liability and doubt as to collectability. In the first instance, doubt as to liability, the taxpayer is making the assertion that s/he does not owe the money as a matter of law, and in the second instance, doubt as to collectability, the taxpayer is asserting that the IRS will not be able to collect the debt because of the current and likely future financial position of the taxpayer. No, they can’t send you jail for not paying a tax bill!

So, what is my problem with most tax resolution services? My problem is how they sell their services and to whom. None of the above is, of course, explained to the prospective “client”, and new clients are gained via heavy television advertising. This is because the target market is mostly lower middle and working class people who are usually clueless as regards to what running a business is really about, and for whom television is college and graduate school combined. Many of them got themselves into trouble with the IRS by trying to go into business for themselves and not getting competent tax help.

So the tax resolution service leads them to believe that they have some magic solution to settle tax debt. They also imply that the IRS will send them to prison. And of course, the tax resolution service charges a fee of several thousand dollars up front. In many cases nothing gets done, it gets done incompetently, or nothing can be done because the facts and/or the law are against the taxpayer.

NEWSFLASH! If you have a problem with the IRS, get a good local tax lawyer, C.P.A., or enrolled agent.

#TaxHelp #TaxHelpScams #IRS #NewJerseyCertifiedPublicAccountant #NewJerseyBusinessBroker

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