Mike Ornelas, a Local Tax Resolution Specialist, Shares Ideas for Avoiding Tax Resolution Firm Scams

SACRAMENTO, Calif., March 25, 2022 /PRNewswire/ -- Choosing a Tax Resolution professional isn't easy. Why?

Because people are bombarded with confusing claims, bad information, and worthless solutions. How do people find a qualified, competent tax resolution specialist? How do they not get ripped-off?

Mr. Ornelas says, "With this information consumers can make an informed, intelligent decision." He shares his 4 main ideas for avoiding getting ripped off by tax resolution firms.

RIP-OFF #1 Overpromising Results

If someone guarantees to settle a tax debt for a certain amount through an offer in compromise, or promises a certain monthly payment amount, that should be a "red- flag." That's like going into a trial and the lawyer saying he knows which way the jury is going to rule.

He can't know ahead of time. It's the same with the IRS. The IRS is the final arbiter, they have the last word.

A reputable firm will conduct a thorough analysis of the case, before they ever agree to take anyone on as a client, to determine what's likely to resolve their matter based on historical experience with cases they've worked before.

RIP-OFF #2 Bait and Switch
Beware of firms that quote seemingly low fees for a particular service just to get people in the door. Then, turnaround and inform the client of additional services needed and want MORE money from the client to complete his case.

A reputable firm will let people know at the onset, even before becoming a client, what the total fees are to achieve permanent resolution.

Some firms will bill by the hour and nickel and dime clients for copies, faxes, time on hold with the IRS, phone calls, postage, etc. They'll never know what it costs them to achieve final resolution.

Most reputable tax resolution specialists work on a flat fee basis, so clients will know what they're going to pay to achieve permanent resolution.

RIP-OFF #3 Salesperson vs. Enrolled Agent

People should always ask the person they're speaking with on the initial phone call or meeting how many cases they've successfully settled. The answer may surprise them, as only an Enrolled Agent, CPA or Attorney can represent them before the IRS.

If they've called an "800" number 10 states away, chances are they're speaking to a salesperson who makes a large commission for signing them up and has no direct bearing on their case.

They want to make sure they only speak with a licensed professional, who's also a tax resolution specialist, regarding their situation and possible remedies.

RIP-OFF #4 Large Upfront Fees

Beware of firms requiring the entire amount of the fee upfront. These are generally the large, national Tax Resolution firms advertising on the radio and late-night TV. They're hungry for money to continue to pay for their expensive advertising without regard to completing the case. It's like a giant Ponzi scheme.

A reputable tax resolution specialist will usually require a reasonable deposit to start the case and will allow payment over time, usually in fixed monthly payments that anyone's budget can handle.

SOLUTIONS INCLUDE, IF QUALIFIED:

…Negotiating an Offer in Compromise for a discounted settlement. Offer a payment of a lower amount and request a release of federal tax liens.

…Requesting a reduction in penalties by presenting valid reasons for removal.
…Offering a monthly Payment Plan that's workable.

…Filing delinquent Tax Returns. It's possible to file original tax returns for past years, usually reducing the tax, penalty and interest owed.

For interesting tax resolution stories and practical advice when dealing with the IRS, the media may contact Mr. Ornelas directly at 866-451-2380 or [email protected].

Media Contact:  Mike Ornelas
Direct Line (866) 451-2380
[email protected]

SOURCE Michael Ornelas