My friend owes about $180K (since 2000) in Fed and Calif. back taxes. She was diagnosed with leukemia, and has not worked since 2000, but the governments continue to pile on late fees. She will never be able to go back to work. Do those lawyers I see on TV really help ? Does anyone know any that are good ? Are they just a sham?
2007-10-16 13:51:38 · 7 answers · asked by dar 3 in Business & Finance ➔ Taxes ➔ United States
She'd do better with a local tax expert instead of one of those that advertise on TV. Remember, TV ads are expensive and guess who pays the bill!
A situation like hers is generally what Congress had in mind when they set up the Offer in Compromise -- someone who cannot possibly pay their debt due to circumstances beyond their control.
As a very general rule of thumb, the IRS will usually settle for what a taxpayer can be expected to pay in 5 years of significant effort. As long as you're not dealing with trust fund monies -- payroll taxes withheld from employees -- she probably has a better than fair chance of settling for less than the total debt, depending upon her ability to pay of course.
2007-10-16 13:59:26 · answer #1 · answered by Bostonian In MO 7 · 4⤊ 0⤋
They are for real but are expensive because they have to pay for all those splashy TV ads. I am an enrolled agent, licensed by the Treasury Department and specialize in taxpayers who have large unpaid tax bills and prepare these for clients like your friend for professional fees less than half of what they charge. I have had disgruntled former clients of a few of these end up on my desk. I won't name names but there is at least one that gets an F from its local Better Business Bureau.
Instead of paying for someone's TV ads she should contact an enrolled agent who handles these. (As an enrolled agent, I will confess bias towards EAs who got their experience working collections cases for decades on the other side of the table.) If you would like to contact me privately, you can send email through my profile.
2007-10-16 15:51:21 · answer #2 · answered by Anonymous · 2⤊ 0⤋
Yes, they are for real. However, why do businesses advertise on tv? Answer, To bring in more business. It is the same for these lawyers. They can help, but they are going to want to get paid a lot to do so.
2007-10-16 13:58:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋
On the Simpson's episode tonight, Homer selected a family counselor from a commercial he saw while watching pro wrestling on TV. It was supposed to be funny. Homer is a cartoon character. There are better ways to select a tax advisor than someone advertising on late night TV after the ads for phone sex.
2007-10-16 18:36:43 · answer #4 · answered by mattapan26 7 · 0⤊ 1⤋
Forget the ads and go to a tax professional and they can file and offer in compromise for you at a MUCH less rate.
Which is all those TV add people do.
Go to http://www.irs.gov and type offer in compromise in the search box and do some reading on the topic. If one is VERY asture they can do this themselves but I suggest someone vesed in tax's help with the forms.
2007-10-16 13:54:51 · answer #5 · answered by Anonymous · 3⤊ 0⤋
She needs to go to a lawyer that specializes in taxes, not someone advertising on television.
2007-10-16 13:54:57 · answer #6 · answered by Clown Knows 7 · 2⤊ 0⤋
Some are for real. Your story is really tough, I am sure that a lawyer would take the case pro bono.
If they advertise, it can't be a scam or they can be dis-barred.
Good luck
2007-10-16 13:55:48 · answer #7 · answered by neveragain 5 · 0⤊ 2⤋