| Finding a tax professional to solve your tax problems | | | | 6. Do they give you a high pressure sales pitch? If they |
| is like the end of Indiana Jones and the Last Crusade. | | | | are pushing that hard, that’s a warning sign to stay |
| Make the right choice and all your wounds will be | | | | away. In many cases when you get a sales pitch you |
| healed. Make the wrong choice and you’ll be turned | | | | are talking with a salesperson, not a tax attorney or |
| into a screaming shriveled skeleton. Whether it’s a | | | | tax resolution specialist who can help you. |
| tax attorney, certified public account or certified tax | | | | 7. Check out your potential tax attorney or tax |
| resolution specialist (CTRS), it’s important to | | | | resolution firm with the Better Business Bureau, but |
| choose your tax representative wisely. | | | | keep in mind the volume of people the company |
| If you’ve got tax problems, like delinquent tax | | | | serves. If the company has 20 complaints over three |
| returns, back taxes, payroll taxes or other tax | | | | years but has served 5,000 clients in that time, |
| collection or audit issues, your first instinct may be to | | | | that’s a 0.4% failure rate, or said differently a |
| open up the yellow page or Google or ask around for | | | | 99.6% satisfaction rate. Even that can be misleading |
| recommendations. Great, now you’ve got some | | | | because the BBB only tracks complaints, not |
| names, but how can you find the right expert to give | | | | resolutions. Even if the client got a full refund and 100% |
| you the IRS help you need? | | | | satisfaction, the client can’t withdraw their complaint |
| To avoid paying a high hourly rate unnecessarily, go | | | | once it is filed with the BBB. You could also Google |
| through this tax attorney/CPA/tax resolution specialist | | | | their name with the words “complaint,” |
| interview checklist first. This checklist will help you | | | | “rip-off” and “scam.” And if they are a tax |
| weed out the tax relief scammers, as well as the | | | | attorney, check with your state’s bar to see if they |
| merely inept attorneys and CPAs out there who will | | | | have any complaints against them. |
| leave you with their high fees, your original tax debt, | | | | 8. Ask for the names of the people who own the law |
| plus additional penalties and charges. | | | | firm or tax resolution company. If your contact is |
| Print out this article and ask the following questions. | | | | elusive on this, run. Bottom line, you need to know who |
| Before you face a tax attorney or tax resolution | | | | runs the show. You need the name of the owner, |
| professional, first look in the mirror to get a handle on | | | | NOT the senior tax attorney. If your IRS case goes |
| your tax problem. | | | | south or the tax attorney handling your case is a |
| - Are you looking at personal income tax issues (you | | | | problem, you need to know exactly who you can |
| are an innocent spouse or a victim of tax fraud), | | | | complain to or who to seek redress from. |
| business tax problems (such as unpaid payroll taxes, | | | | 9. Find out the name of the tax attorney or tax |
| sales taxes), estate taxes, foundation or charity tax | | | | resolution specialist who will be taking your case. Find |
| issues? | | | | out how quickly they respond to your inquiries. Do they |
| - Are you dealing with just federal or state taxes too? | | | | answer their phone or email promptly? Ask for |
| - Do you have tax problems in multiple states or | | | | references of satisfied customers for that specific tax |
| jurisdictions? | | | | attorney or tax resolution professional. (Given the |
| - Does the IRS know about the issue yet or have you | | | | confidentiality of tax resolution work, a personal |
| just discovered it? | | | | reference for a tax attorney might be hard to come |
| - Did the IRS contact you but you’ve buried your | | | | by.) |
| head in the sand hoping it would go away? | | | | 10. Does the tax attorney or tax resolution firm have |
| - Are your records a shambles? | | | | experience in multi-jurisdictional issues? Because the |
| - Can you attempt a true reckoning of what | | | | IRS is a federal agency, there are three people |
| happened? | | | | permitted to practice before the IRS. You have to be |
| - Has the IRS come to your home or place of | | | | an active licensed member of the state bar, a certified |
| business? | | | | public accountant actively licensed or an enrolled agent. |
| - Has the IRS demanded an in-person audit? | | | | No matter where they live, they can represent the |
| - Has the IRS garnished your wages, put in tax liens or | | | | taxpayer before the IRS is all 50 states. |
| seized any property? | | | | 11. Will this tax attorney or tax resolution specialist go |
| Answering these questions will help you decide what | | | | with you to an in-person audit? Although 90% of tax |
| kind of tax help you need. | | | | resolution work is done over the phone, electronically |
| When you get tax problem resolution professional | | | | or via FedEx, sometimes you need a tax attorney to |
| recommendations from friends, you need to compare | | | | literally hold your hand in an audit. But don’t choose |
| apples to apples. While a CPA will have a cheaper | | | | a tax attorney just because they have an office near |
| hourly rate than a great tax lawyer, they can’t do | | | | your home. An accident of geography doesn’t |
| what a good tax lawyer can. A great CPA can put | | | | mean they are the right tax attorney for the job. In |
| your tax records in order so you can get a true | | | | many cases a national firm such as ours can make |
| accounting of the “historical” road just travelled, | | | | sure you never have to darken the door of an IRS |
| but they probably shouldn’t take you into battle with | | | | audit. |
| the IRS because they don’t spend all their time | | | | 12. How can they help you if the IRS wants to come |
| negotiating tax resolutions the way specialized tax | | | | to your home or business? |
| professionals do. You need someone who battles the | | | | 13. Is the firm just a tax form filler? Just because they |
| IRS for a living, who has learned the latest laws and | | | | prepare a lot tax returns doesn’t mean they are |
| knows all the secrets to helping resolve your tax | | | | ready to battle the IRS. There are a number of tax |
| problem. | | | | resolution and “tax attorney” scams that do |
| That’s why some tax resolution firms offer a team | | | | nothing but type up an Offer in Compromise and just |
| of expert tax professionals to help you get the best | | | | mail it to the IRS. That’s all the service these |
| possible outcome for your tax settlement. So before | | | | “tax attorneys” provide. These companies are |
| you rack up those high hourly charges, you need to | | | | at best, a waste of time and money and at worst, a |
| make sure you are talking to the right tax professional | | | | one-way ticket to big trouble. |
| who can do the job for you. You will be hiring this tax | | | | 14. What are their prices? Don’t be penny-wise but |
| attorney, so treat your initial consultation as what it | | | | pound-foolish. Don’t just lock onto a tax attorney or |
| should be, a job interview. | | | | tax resolution firm’s low price. Look for value and |
| Questions to ask a tax attorney, CPA or certified tax | | | | the number of services you get. Will this tax attorney |
| resolution specialist: | | | | or tax resolution professional give you preparation of |
| About the firm: | | | | all IRS forms, all backup documentation, and all |
| 1. How long has they been in business solving IRS | | | | negotiation with the IRS? |
| problems? The longer they have been handling | | | | When you meet or interview your tax resolution |
| negotiations with the IRS the better. A lawyer or | | | | specialist or tax attorney ask them: |
| CPA firm may just do tax law on the side and not be | | | | 1. Where did this tax attorney or CPA go to school for |
| dedicated to knowing the ins and outs of IRS | | | | tax resolution? How current are they (how much |
| negotiations. | | | | continuing education is this tax attorney taking)? |
| 2. How many tax attorneys do they have on staff? | | | | 2. How long has this tax attorney or tax professional |
| (Some firms are only CPAs, some are nothing but | | | | practiced tax resolution, not straight tax law but real |
| former IRS agents, some are straight law firms with | | | | battle with the IRS for tax resolution? |
| only one or two tax attorneys). If you don’t do tax | | | | 3. What percentage of their jobs are tax problems like |
| resolution day in and day out, you don’t know all | | | | yours? |
| the loopholes, tricks and tools. Look for someone who | | | | 4. Who is their direct supervisor? What is their contact |
| is a certified tax resolution specialist, they have to take | | | | information? |
| a special exam and have a number of years of | | | | 5. Does the individual tax attorney, CPA or tax |
| experience and continuing education in this field. There | | | | resolution specialist have references? |
| are only about 200 in the entire country who actually | | | | 6. What is his/her personal success rate? (How many |
| do this as a living. | | | | Offers in Compromise settlements have been |
| 3. What is their success rate with tax cases? | | | | accepted and what was the negotiated amount owed |
| Don’t take a generic number here. Ask about the | | | | versus the initial amount of taxes owed and penalties? |
| success rate for cases like yours. Don’t expect a | | | | In short, how much has this individual tax attorney or |
| perfect score. For example in most cases the Offer in | | | | tax resolution professional saved clients? How does |
| Compromise is a starting offer. Only about 2% are | | | | this tax attorney or tax resolution specialist compare to |
| immediately accepted by the IRS. The more important | | | | the rest of the firm: above average or below?) |
| number is comparing cases like yours. What is the | | | | 7. What sorts of releases for tax liens, levies, etc. have |
| total dollar amount negotiated in settlements divided by | | | | they achieved? How fast? |
| total dollars in tax, interest and penalties owed? In | | | | 8. What sorts of penalties (like mine) have this tax |
| short, how much did these tax attorneys save their | | | | attorney/ tax resolution specialist gotten waived? |
| clients? | | | | 9. What sorts of installment agreements in situations |
| 4. Do they offer a guarantee? Run away if they do. | | | | like mine has this tax attorney or tax resolution |
| No one can guarantee anything. | | | | professional negotiated and what was the payment |
| 5. Does the law firm or tax resolution company want | | | | schedule? |
| all the money up front? If they do, run. Once tax | | | | Once you are convinced you have found the tax |
| professionals have your money, they have no | | | | attorney or tax resolution specialist that can help you, |
| incentive to go the extra mile for you. If your tax | | | | you’ll feel like you’ve found the Holy Grail. |
| attorney, tax resolution specialist or CPA wants some | | | | Choose wisely. |
| "good faith money" that’s fine. | | | | |