Discussion:JK Harris & Co., to repay cheated clients

Tax-relief company to repay cheated Ohioans

Friday, June 13, 2008 3:11 AM

By Tracy Turner

THE COLUMBUS DISPATCH

A company that promised to settle consumers' tax obligations to the Internal Revenue Service for "pennies on the dollar" instead will refund consumers $1.5 million.

JK Harris & Co., a South Carolina-based tax-relief company, has agreed to stop misleading its customers and repay them for services not rendered, the Ohio attorney general's office said yesterday.

JK Harris was sued by attorneys general from 18 states, including Ohio, after it was found that the company didn't get consumers the tax relief it promised.

Another South Carolina-based company, Professional Fee Financial Associates, also was sued for loaning consumers money to pay for JK Harris' services but not letting them out of their loans once it was determined that JK Harris would not be able to help, the lawsuit said.

Neither company returned calls seeking comment.

According to the suit, JK Harris would fill out IRS Offer in Compromise forms for consumers. The company would charge consumers for this service before finding out whether they qualify for a tax reduction and, in some cases, even after realizing the consumer didn't.

The company also collected fees in advance and falsely promised that the services would be provided by "ex-IRS agents," the suit said.

The settlement "means (consumers) will get restitution," said Nadine Ballard, chief of the Consumer Protection Section for the Ohio attorney general's office.

About 90 Ohio consumers could be eligible for a partial refund. To be considered, consumers must file a complaint with the Ohio attorney general by mid-September by calling 1-877-244-6446 or going online to www.ag4ohio.gov. The amount will be determined by the number of people who apply.

Ole John keeps popping up during Law & Order reruns on TnT....this woman, who is not lit by stage lights but whose face is in the dark, says IRS took her last $40 and contacted her employer. Wife watched it and said 'she looks about 80, where could she be working?' I told her that maybe she was a file clerk in JK's office.

Here is the link to the original story. http://www.dispatch.com/live/content/business/stories/2008/06/13/no_pennies.ART_ART_06-13-08_C10_6RAFQCF.html?sid=101