Another nationwide firm bites the dust

JK Harris, a nationally advertised tax resolution firm, recently filed for federal bankruptcy protection and has ceased business operations.  JK Harris was forced into bankruptcy due to legal action taken by Attorney Generals from several states.  Thousands of taxpayers may be left helpless and without proper representation.   JK Harris is the third nationwide firm to have ceased operations due to unfair business practices involving consumers in several states.

JK Harris is the third nationwide firm to have ceased operations in the last two years.

Articles

Slade, David. “JK Harris Goes Under.”

Erb, Kelly Phillips. “Tax Lady Roni Deutch May Earn Jail Time.” 

Wouters, Jorgen. “FTC: American Tax Relief ran $60 million scam as owners drove Ferraris.” 

These companies heavily advertised settling your tax debt for pennies on the dollar.  Their nationally broadcast advertisements have sparked several lawsuits because such advertisements mislead taxpayers.  The reality is that settling IRS debts for less than what is owed is only possible if the taxpayer meets specific qualifications.  Please see my Offer-in-Compromise blog posting.

The companies under fire have typically used aggressive non-licensed sales people with limited knowledge of tax law to recruit clients.  The sales people offered services that many taxpayers do not qualify for.  These companies typically collect most of the fees up front.  By the time clients understand that services have not been provided, they may have paid thousands of dollars with no results and need to hire help elsewhere.

Another nationwide tax resolution firm experiencing similar difficulties:

Patel, Avni; Hill, Angela M.; Ross, Brian. “TaxMaster Accused of Fraud and Deception.”

Before making the critical decision on which firm you plan to hire to handle your tax problem, consider the following:

1)    Seek assurance that the person recommending a solution and services is a Certified Public Accountant (C.P.A.), Attorney, or Enrolled Agent (E.A.), not simply a sales person.

2)    Research the company on the internet to determine if any consumer complaints have been filed against it.

3)    Read my blog on settling your debt with the IRS for pennies on the dollar.  If a company is providing Offer-in-Compromise IRS services, you should be assessed and promptly informed if you qualify for such services.

4)    Contact your local Better Business Bureau or your state’s consumer protection division to determine if any consumer complaints have been filed and, if so, how resolved.

Choosing the right firm to handle your tax situation is a very important decision.  Picking the wrong firm can have dire consequences for your pocketbook and your peace of mind.  You risk losing thousands of dollars in fees with little to no results in return.

If you are looking for assistance on resolving your tax problems call ALG Tax Solutions at 855-MI-TaxHelp.  (855-648-2943)