The Mission Statement of the Tax Resolution Blog?

We created the Tax Problem Resolution Blog to aid the average person to become more discerning buyers of tax resolution and tax representation services. Please read the index of articles below to learn more about the tax resolution industry and to assist you in solving your specific tax problem.

Jay Freeborne, Enrolled Agent at Washington Tax Services, open for business since 1989

Wednesday, January 19, 2011

Fees for Tax Representation -- WHAT IF SOMEONE CHARGES $4000 OR MORE?

One of the most popular posts on this blog is here:  Fees for Tax Representation  In that post, I explain as thoroughly and honestly as possible what I charge to represent taxpayers before the IRS and/or State.

But, as you can see in the post below Five Different Interviews , many companies commonly charge north of $4000.00.

When should you pay more than $4000 for tax representation / resolution services?

I will briefly outline the kind of cases that warrant that kind of fee:

1. 941 tax liability on a very large and open business.
2. Corporate tax preparation 1120S or 1120 needs to be done in addition to representation.. 
3. Many complex tax returns - 1040's need to be done on top of representation/negotiation.
4. Estate/trust set up and/or tax preparation in addition to representation.
5. A very large balance case assigned to a Revenue Officer for someone with numerous business entities.

If you don't have one of the above cases, there is NO REASON you need to pay more than $4000 for tax representation or resolution.  NO WAY.  Watch out for companies that charge more than this.  The fee is to pay a very generous commission, usually to a salesperson. 

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