Tax Scams by "Tax Resolution" Firms: The People's Tax Lawyer Publishes New IRS Report
IRS Tax Attorney Kreig Mitchell has published a new report entitled "What You Need to Know to Represent Yourself Before the IRS," in an effort to help taxpayers resolve their tax debts without having to pay thousands of dollars for very basic "help" from "tax resolution" firms.
PR9.NET September 15, 2006 - Denver. Taxpayers are often confronted with the problem of having an IRS tax trouble, but the amount of taxes are not large enough to justify hiring a tax lawyer or even an accountant or an enrolled agent.
There are a number of "tax resolution" firms that purport to help taxpayers resolve their tax debts. Unfortunately many of these "tax professionals" use fear of the IRS and other intimidation tactics to get taxpayers to pay thousands of dollars for very basic help.
Tax Attorney Kreig Mitchell gives this example. He was recently approached by a potential client who had hired one of the large "tax resolution" firms. After looking at the "tax resolution" firms website, the taxpayer had hired this firm to file an offer in compromise with the IRS on his behalf.
Kreig Mitchell went on to explain that the "tax resolution" firm filled out the one page IRS form and submitted it to the IRS, but they did not take the time to advise the client that all of their federal income tax liabilities were fully dischargeable in bankruptcy. The "tax resolution" firm did not take the time to review this clients financial information as the client could have benefited from filing bankruptcy for his other non-tax debts as well.
After looking at the case further, Tax Attorney Kreig Mitchell says that it was apparent that the IRS statute of limitations was about to expire for much of the tax debt that this client owed the IRS. As a result, had the taxpayer not submitted an offer in compromise the IRS would not have been able to collect a penny from the taxpayer -- never.
Once the offer in compromise was submitted, the "tax resolution" firm had completed their contractual obligations. Thus, they refused to speak to the taxpayer from that point on. Mr. Mitchell explains that that was unfortunate because the IRS rejected the "tax resolution" firm's offer in compromise and the IRS seized the taxpayers personal assets. The taxpayer lost nearly all of his meager belongings.
The prices that these "tax resolution" firms charge for their "services" are often well in excess of the prices charged by even the most expensive tax lawyer or CPA.
To help combat these "tax resolution" firm scams, the People's Tax Lawyer decided to release a new report entitled "What You Need to Know to Represent Yourself Before the IRS." Mr. Mitchell says that by reading this report, taxpayers will know more than 99% of the "tax professionals" out there today. A copy of the report can be found at: http://www.irstaxtrouble.com/represent-yourself-before-the-irs.htm.
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About Law Office of Kreig Mitchell
IRS Tax Attorney Kreig Mitchell helps taxpayers resolve disputes with the IRS; including IRS offer in compromises, IRS tax levies and liens, innocent spouse claims, payroll tax penalties, and IRS tax audits.
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