Discussion:Figured it out--the tax resolution ads
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| Revision as of 12:10, 29 October 2009 NoVATaxes (Talk | contribs) (Thanks Kevin and) ← Previous diff |
Revision as of 14:50, 29 October 2009 Irsfixer (Talk | contribs) (The number of pr) Next diff → |
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| {{ForumReplyPost|UserID=NoVATaxes|Date=29 October 2009|Text=Thanks Kevin and WW for your thoughts. Are there any continuing negotiations per se with the IRS after an OIC is submitted? Or is it mainly preparing the application and once submitted, it becomes a waiting game?}} | {{ForumReplyPost|UserID=NoVATaxes|Date=29 October 2009|Text=Thanks Kevin and WW for your thoughts. Are there any continuing negotiations per se with the IRS after an OIC is submitted? Or is it mainly preparing the application and once submitted, it becomes a waiting game?}} | ||
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| + | {{ForumReplyPost|UserID=Irsfixer|Date=29 October 2009|Text=The number of practitioners that prepare offers that have no clue about the process really amazes me.}} | ||
Revision as of 14:50, 29 October 2009
Discussion Forum Index --> Basic Tax Questions --> Figured it out--the tax resolution ads
Discussion Forum Index --> Tax Questions --> Figured it out--the tax resolution ads
| October 27, 2009 | |
| Finally figured it out. Listening to them again, wondering, ok, so how can they say this? Listen carefully. You and I separate taxes due into two categories: legit and not legit. The Not legit is the CP2000 stuff, mismatch errors, penalty notices, etc. that we regularly handle and clear. The legit debt is owed, and as we all know, there's been quite the stiffening up of actual tax resolutions the past few years, to the point where I personally don't know anyone who's even tried.
What these guys advertise are the unwitting taxpayers who don't have a legit tax debt, which the companies handle for a fee, and get knocked down to nothing. And they blow their trumpets. Well, I, too have a 100% success rate on those over 25 years of practice! Now we know. Make sense? | |
| 27 October 2009 | |
| I have had several of those then, where the IRS says the taxpayer owes $250,000 based on SFRs prepared based only on 1099-Miscs. When I prepare and the client files the correct return, the actual tax debt is often less than $8 or $10,000. When the IRS accepts the return to replace the SFR, does this mean that the IRS 'settled' for 3.2 cents on the dollar? | |
| October 27, 2009 | |
| That's exactly how they're selling it. Like I said, listen carefully. They say, "IRS says you owe a bunch of money..." Not that you actually do owe it, merely that IRS says so. Well, every piece of mail from them says that! Misleading big time. Patently false? Perhaps not. Now starting my own advertising campaign. | |
| 27 October 2009 | |
| How bout when the client forgets to give yo one of their brokerage statements and they have about $300,000 in stock sales cause they fancy themselves day traders. They get a notice stating the entire amount is taxable until after we do the amendment and add in the cost basis, sometimes even generating a refund. | |
Ksnoopytax (talk|edits) said: | 28 October 2009 |
| You did save them tax. Time to bump up the bill! I could put quite an advertising campaign up too if that is how those ads work. | |
| 28 October 2009 | |
| I plead guilty as well - I botched a partnership extension last April, client got fined ("IRS says they owe a bunch of money"), I got penalty waived under Rev Proc 84-35, now I'm the hero!
That makes perfect sense, JR1. | |
| 28 October 2009 | |
| But those ads DO send a shiver up the old spine, don't they? I still haven't figured out how they can claim to have attorneys working for them...a lawyer cannot "practice law" through a non-lawyer business entity nor can he split fees with a non-lawyer, employer or otherwise. True, accounting firms use lawyers for IRS representation but those guys don't represent themselves to the client AS lawyers, I don't think. Doing so absolutely constitutes "practice of law". | |
| 28 October 2009 | |
| Roni Deutsch is an attorney, so that clears that hurdle. Not sure about the JK Harris's & other sleazeball firms. | |
| 28 October 2009 | |
| I hear that the OIC mills subcontract out the work, so perhaps they subcontract some to attorneys who are in their own practice and therefore legally practice law. | |
| 28 October 2009 | |
| I've never had to do an OIC before. Is there even a chance of success if the application isn't based on doubt as to liability and the TP is not insolvent? How much can you argue based on effective tax administration? Anyone with practical experience? | |
| 28 October 2009 | |
| well, all of the ones I've done have been based on doubt as to collectibility, and I've had several accepted.
I've got one in the works now - she owes about $15,000 and we've submitted an offer of $500. I believe the IRS will accept it, based on the info submitted. If not, she will take her $500 across the street to the bankruptcy attorney in a few more months. Then HE will get to say he saved his client thousands, instead of me saying it. | |
| 29 October 2009 | |
| I'm not the final filer in our firm for OIC's, but I do get involved in the prep work. Personally, I don't see a whole lot of rhyme or reason for what is accepted and what is rejected. I've seen them accept offers without the person being insolvent, and I've seen them reject offers when the person is insolvent, so go figure.
Just turned down a request to handle one that I felt had no shot. I'd pestered this client repeatedly several years ago to make sure the son was paying taxes on his 1099 work, and was assured it was taken care of, and the son pretty much had the attitude that it was none of my business. So I figured he had another preparer. Wrong. The IRS finally caught up with him, wants back taxes (rightfully so), and the son is now gainfully employed. I just didn't see any basis for filing the OIC, but Roni Deutsch was willing to take him on - for a hefty fee of course. | |
| 29 October 2009 | |
| Thanks Kevin and WW for your thoughts. Are there any continuing negotiations per se with the IRS after an OIC is submitted? Or is it mainly preparing the application and once submitted, it becomes a waiting game? | |
| 29 October 2009 | |
| The number of practitioners that prepare offers that have no clue about the process really amazes me. | |
