Rip-Off #1: Overpromising Results
If someone guarantees to settle your tax debt for a certain amount through an Offer in Compromise, or promises you a certain monthly payment amount, that should be a “red flag” to you. That’s like you going into a trial and your lawyer telling you he knows which way the jury is going to rule. He does not and cannot know ahead of time the outcome. It is the same with the IRS. The IRS is the final arbiter; the IRS has the last word.
A reputable firm will conduct a thorough analysis of your case, before considering taking you on as a client, and determine what is more likely than not to resolve your matter based on the firm’s historical experience with cases such as yours.
Rip-Off #2: Bait and Switch
Beware of firms that quote low fees for a particular service just to get you inside the door and then turn around and inform you of additional services needed and want MORE money from you to complete your case.
A reputable firm will let you know at the outset, even before you become a client, what the total fees are to achieve a permanent resolution to your case.
Some firms will also bill you by the hour then “nickel and dime” you to death for copies, faxes, time on hold with the IRS, phone calls, postage, etc. You will never know what it will cost you to achieve a final resolution of your case.
Most reputable Tax Resolution Specialists work on a fixed or flat-fee basis, so you will know “all-in” what you are going to pay.