Avoid Tax Resolution Companies: 9 Warning Signs to Watch For

When you are dealing with a tax problem, having a tax professional on your side is highly beneficial. However, not all tax professionals are the same. In fact, many of the tax resolution companies in existence today don’t provide the quality services taxpayers deserve. Below are some of the reasons you should consider avoiding most tax resolution companies.

9 Reasons To Avoid Most Tax Resolution Companies

1. Poor quality employees

Many tax resolution companies rely on their employees to bring in a certain number of cases in order to earn a profit. This causes the company to hire people who are good at sales, but not necessarily good at resolving tax problems.

2. High employee turnover

Because the company relies heavily on sales, it may fire employees who are unable to bring in enough new clients. As a result, employee turnover is often high.

As a client of the company, this may expose you to employees lacking experience. It may also cause you to be passed from one representative to the next without warning.

3. Unreasonable fees for representation

Many tax resolution companies ask you to pay exorbitant fees for mediocre service.

If you are paying thousands of dollars to a tax representative who never returns your calls or drags his feet while dealing with your case, it’s time to look for another solution.

4. Deceitful advice

In many cases, tax resolution companies make promises they cannot keep to attract more customers. One of the most common tactics, for example, involves telling a taxpayer that he or she will qualify for an Offer in Compromise when it is clear that the individual doesn’t qualify. This is a common tax resolution scam or bait in switch with the common misleading message of being able to settle your tax debt for “pennies on the dollar“.

5. Bad advice

Some tax resolution companies give taxpayers honest advice, but it’s often bad. This may occur because the tax professional is untrained, inexperienced, or just not paying attention. Unfortunately, this bad advice is often detrimental to the client’s case.

6. Using scare tactics to bring in clients

Another notorious misdeed perpetrated by many tax resolution companies is the use of scare tactics to create a sense of urgency in clients. For example, the company may cold-call people with tax liens in hopes of convincing them that their case is more serious than it actually is.

The goal of this tactic is to manipulate the client’s emotions so that they hire a tax resolution company to deal with the issue.

7. Neglecting clients

Some of the larger tax resolution companies tend to neglect their clients. Allowing them to fall through the cracks and exacerbating their problems with the IRS.

For example, if the company isn’t paying attention, the IRS may place a lien against the taxpayer’s property or enact wage garnishments that can be avoidable.

8. Continuation fees

Unscrupulous tax resolution companies often charge ridiculous fees when cases change or last for a certain amount of time. Although some fees for continuation may be justified, these fees should not be burdensome for the client.

9. Closing up shop

Ineffective tax resolution companies can go out of business at any time. If you are a client of a company that goes out of business, you will not only lose money, but you will also have to find another representative if you still want professional help with your case.

At Tax Samaritan, we put our clients first, providing them with superior service for a reasonable fee. Our employees are trained, and turnover is low. Contact us today to get started with a legit tax resolution company, and be sure to avoid most tax resolution companies.