Taxpayer Advocate Dennis Buckley has issued the following alert:
So-called tax resolution companies continually market themselves as the solution to a taxpayer’s problems. Their pitch is simple: pay our company some money and our tax experts will lower and settle your tax liability.
These claims are false. DOR has issued warnings about these claims. If something is too good to be true, it probably isn’t, and that is certainly true about what these companies promise. DOR publishes all Offers in Final Settlement in its annual report. None were reached with the help of a tax resolution company; all were negotiated directly between the taxpayer and DOR.
These companies take money that taxpayers would be better served spending on reducing their tax liabilities. They offer false hope.
But the Taxpayer Advocate has just heard of a new tack from a tax resolution company that sinks to a new low: The company advised a client to deliberately break a payment agreement worked out with DOR.
Specifically, the company advised a client to deliberately bounce payment checks sent to DOR as a way to get a better payment plan.
This is bad strategy and advice. In the case of this particular taxpayer, a bank levy was issued and an account used to make payroll was frozen. After the taxpayer contacted DOR, the levy was reduced to allow for payroll to be met. The taxpayer got no benefit from the company, only more problems.
Despite the promise of television and radio commercial, these companies will take your money and deliver nothing but broken promises.