The Evolution of our Industry - Watch Out for the Bad Guys

About 20 years ago, this "industry" didn't exist. Tax problems were resolved via "old school" accountants/lawyers who didn't do cases in high volume. These professionals didn't do a lot of problem tax cases but when they did - they improvised a solution, learning how to navigate the IRS collection system on the fly.

Volume-based representation - firms set up to handle tax problems in large numbers like ours - began in the late '80's . This time period was essentially when our company, Washington Tax Services, came into existence. The large company phenomenon also came into being once the Offer in Compromise program became wider in circulation and use.

I would say that for the most part - volume-based representation companies - have been a VERY BAD thing for problem taxpayers.

You see the ads on TV..."settle for penalties on the dollar." You get the endless bombardment of mail once you have a tax lien on record. You call up the phone and get a very slick sales pitch from for all that you know could be some unemployed actor in Los Angeles. The fee is $5000.00 to get you an Offer in Compromise!... Two months into the system, clients learn that they DON'T qualify for an OIC. Or that their unemployed actor consultant got a job in the film industry and isn't answering his phone! Or worse the company is shut down by the IRS!

In fact one very large firm - the largest that I know of based in South Carolina - lost a class action lawsuit to 58,000 customers. Sadly, each customer only received $69 after paying their lawyers.

It's a bad scene out there. If our company doesn't suit you, I think you would be safe to AVOID any company based in the Los Angeles area - particularly those with a name ending in "TAX RELIEF" OR the aforementioned company in South Carolina. Check out the http://www.bbb.com/ on anybody else.

Our record at the BBB is SATISFACTORY. And yes, we get a few complaints every year, but the KEY IS: WE RESOLVE THEM! 20 complaints in three years out of 7500 total customers is pretty good in this business. Personally, I seem to get one sole complaint every year for the last five years. It's inevitable. So far in 2008, none. Fingers crossed!