You’ve seen them – the loud, obnoxious commercials by “Tax Resolution” companies, promising to settle your IRS tax debt for pennies on the dollar. These “assembly-line” Tax Law Firms prove true the old adage, “You get what you pay for.” Unfortunately, you are likely to pay more and get less than you bargained for.
Ronnie Deutch, the infamous “Tax Lady” is a great example of why you should think twice before hiring a large, out of state Tax Law Firm to handle your IRS Problems. Ronnie Deutch ran the largest tax resolution firm or “Tax Mill” in the country. Spending $12 Million+ in advertising over the last four years, her constant tv commercials, the Tax Lady was hard to miss.
Unfortunately, the Tax Lady Tax Mill empire recently came crashing down. In May, “Roni Deutch, A Professional Tax Corporation” closed after having assets seized when Deutch was found in contempt of court pertaining to the $34 million lawsuit filed by the California Attorney General. The Attorney General charged Deutch in August of 2010 with fraudulent and misleading business practices. Her successful Tax Law Firm operated in a call center like manner, transferring potential clients to sales agents (with no legal or tax background) for a free tax consultation. The sales pitch involved false promises of significantly reducing the client’s IRS tax liability.
In reality, the Deutch Tax Firm swindled clients out of Millions of dollars while rarely taking care of their IRS Tax issues. According to the California Attorney General, each year about 3/4ths of Deutch’s clients canceled the law firm’s services or were terminated as clients for failure to pay
As irony would have it, the IRS subsequently filed a tax lien against Deutch for $183,000.
Unfortunately, the Tax Lady is just one of the many companies swindling financially troubled people by making fraudulent promises of IRS Tax Settlements. Just to name a few, Tax Masters, American Tax Relief, Progressive Tax Group, Innovative Tax Relief , Guardian Tax Resolutions, Urgent Tax Care, Tax Group Center, Blue Tax, Associated Tax Relief, ratings of “F” with the Better Business Bureau (bbb.org) and have dealt with a slew of charges relating to their fraudulent business practices.
Most taxpayers that fall victim to a Tax Mill operation are left in a worse position than they were in prior to seeking the companies’ services. Not only are many – if not most – of them still liable for the original amount of IRS debt, but they also are out-of-pocket substantial sums of money paid for the services of these companies. So before dialing that toll-free number because an animated promise you relief of your tax debt, beware of getting “more than you bargained for.”Don’t let this happen to you. If you are having IRS tax problems, keep this in mind: You as a taxpayer are ultimately responsible for your tax liability and ONLY the IRS has the ability to reduce that tax liability. Although it is wise to seek the counsel of a tax attorney when dealing with the IRS, beware of anyone that makes particular claims or guarantees as to what they can do and claims to be able to “quickly” resolve the matter.