Jul 16, 2008

Tax whores....they are ruining the neighborhood...

I am often puzzled by the prostitution that is now predominant in the Tax Resolution Industry. A prostitute or someone that engages in general prostitution sells themselves for an unworthy use. In this industry there are many who do.

This is a disgrace considering that there are many ethical players in this industry. The whores are ruining the neighborhood and removing the ability for ethical players who are very proficient in resolution.

You have three choices in dealing with your tax debt problems:

1. Represent yourself before the IRS and negotiate a resolution
2. Do nothing and let the IRS take enforcement
3. Hire a professional to resolve your problems

There are pros and cons to each except choice #2- doing nothing will only cause you to look over your shoulder forever. Also, the IRS will eventually take your money without asking. Choice # 1 - resolving your problems on your own- may be penny wise but dollar foolish if you do not know all of your options and how to apply them to your personal financial situation.

Choice and option #3- if you are considering hiring a professional- and I believe this is a wise idea- requires that you look at all of the following factors at a minimum:

1. What is the firm's experience in resolving tax debt issues? (is there ex-IRS personnel that can get through the bureaucratic mess of the IRS)
2. How long do they take in doing their resolution? (you will need specifics)
3. Is the firm that you hire going to consider all of your options?? (not just the popular ones that the "whores" are pimping- i.e. the "Pennies on the Dollar" abuses)
4. Do they hold themselves to any industry standards of excellence? (what are their affiliations?)
5. Are they making unrealistic, long shot promises?? (are they promising something that sounds too good to be true)

If the firm you are considering is giving you a conclusion without doing all of the due diligence- look out....because resolving your tax problems requires extensive discovery (yes, similar to an attorney), analysis, and a consideration of every option.

I am all for kicking the whores out of the neighborhood....so that the ethical providers can do what they do best: resolve their client's tax problems and provide them peace of mind for their financial future.

3 responses:

The Good Tax Helper July 17, 2008 at 11:32 PM  

Jim, your rant brought a tear to my eye. Haha. Nice post! Personally, one of your most articulate and well-written. Keep up the good work!

Anonymous,  July 18, 2008 at 4:56 PM  

I couldn't agree with you more about this issue. And you point out JK Harris, which is the worst of the worst. However, I'm surprised you'd bring this issue up on your own blog, considering that Effectur doesn't have the most sterling reputation in the industry, either. Definitely not the worst, but definitely not the worst. You have 26 local BBB complains against you in the past 3 years. I'm curious what you have to say about these complaints against your own company.

Jim July 22, 2008 at 12:20 PM  

Your comment about the 26 BBB complaints in three years against Effectur is true. We are definitely not perfect. Unfortunately, however, the BBB doesn't give you a totally accurate picture of our book of business, considering we service thousands of clients each year. Looked at this way, 26 is quite a small number in a 3 year span. That's only 6-7 complaints a year out of thousands of clients (just over 1/2 of a percent of our total client count). Additionally, we take every BBB complaint very seriously and actually have a Director of Integrity assigned to these cases to ensure that they are seen through. Of the 26 complaints, all have been responded to and have either been resolved or administratively closed. In all of the administratively closed cases, Effectur agreed to arbitration, but the consumer declined. There is no such thing as a perfect company, but we still strive to get closer to perfection each day.

The reason for the blog post is that a few of these 26 heard the deceptive marketing from other companies and expected those results from us. Right off the bat, the client and company expectations are different in those cases. There are other reputable tax resolution firms out there besides us who have probably experienced the same thing. Getting rid of the deceptive advertising in our industry would leave only healthy competition and encourage all companies toward excellent performance.

Thanks for the comment.

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