Top 10 Questions to Ask a Tax Resolution Company Before Hiring

Posted 11/11/2008 9:03:27 AM

By working the past two decades in the tax resolution industry, Roni Deutch, A Professional Tax Corporation has seen its share of competitors. In fact, we are alarmed by how many “fly-by-night” tax resolution companies spring-up throughout the country every year. Unfortunately, many clients hire us only after having been fleeced by one of these companies or only after having been provided ineffective representation or lousy client service. To protect individuals looking for the right fit when it comes to IRS back tax assistance, we put together the following list of the top 10 questions to ask a tax resolution company before hiring them.

1. Do You Offer a Free and Confidential Consultation?

Respectable tax resolution companies should offer prospective clients an in-depth free and confidential consultation. During this consultation, the company should examine the taxpayer’s IRS compliance situation (i.e. whether all required tax returns are filed and the size of the tax liability.), as well as the taxpayer’s financial situation (i.e. the taxpayer’s ability to pay the tax debt). Why? Because the IRS’s tax resolution programs each have qualification criteria that are based on a taxpayer’s IRS compliance and financial situation. A tax resolution company’s failure to examine both criteria prior to suggesting a form of back tax resolution should shoot-up a red flag in the taxpayer’s mind when it comes to hiring that company.

At Roni Deutch, A Professional Tax Corporation, we offer a free and confidential consultation and tax debt analysis. We do not suggest any form of back tax resolution until the tax debt analysis is completed. Please check out our page Easy as 1, 2, 3 for more information on how we conduct our confidential consultation and the steps we take to identify the resolution that is right for you.

2. What Services Do You Offer?

Trustworthy tax resolution companies should be able to let a client know the IRS tax resolution services they offer. In addition, the list should include more than one service. A calling card for many “fly-by-night” tax resolution companies is that they offer only one type of service. If they offer more than one service, make sure that the representative you are speaking with is knowledgeable about all of them. They should know what each service will do towards helping you resolve your IRS back tax liability.

At Roni Deutch, A Professional Tax Corporation, we offer a variety of services, including Offer in Compromise, Installment Agreement, and Currently Not Collectible status, among others. Please check out our Services page for more information.

3. What are Your Legal Fees and Can I Pay Them Over Time?

Most companies in America prefer to be paid up-front. Thus, a tax resolution company asking for full payment upfront should not be cause for concern. Rather, what should be cause for concern is if the company you are dealing with does not allow some form of payment plan as an alternative.

At Roni Deutch, A Professional Tax Corporation, we charge an affordable flat fee based on the service you retain us to perform. These fees may be paid by making a full payment or can be made in monthly installments.

4. Who will be Representing Me Before the IRS?

The vast majority of tax resolution companies are not law firms. Consequently, many do not use tax attorneys to negotiate with the IRS on behalf of their clients. Rather, many employ Certified Public Accountants (CPAs), Enrolled Agents, and tax preparers. Even if a company claims to use attorneys, make sure you get confirmation that an attorney will actually be the person contacting the IRS on your behalf and negotiating your tax debt settlement.

At Roni Deutch, A Professional Tax Corporation, we pride ourselves on being the nation’s largest tax resolution law firm. We only use attorneys to negotiate with the IRS on behalf of our clients. Please visit our Attorney Profiles page for more information.

5. How Long Have You Been in Business?

Before hiring a tax resolution company, find out how long they have been in business. Longevity is typically a good indicator of past, current, and future success. It is also a good indicator that the company actually knows how to perform the services they offer.

At Roni Deutch, A Professional Tax Corporation, we have been resolving our clients’ IRS tax debts since 1991. During this time, we have helped thousands of taxpayers resolve tens of millions of dollars in IRS back tax debt.

6. How Can I Verify Your Record or License?

Getting third-party confirmation of a company’s credentials, license, and/or records is also a shrewd move. If a tax resolution company uses attorneys, they should be able to direct you to the state bar website for the state in which their attorneys are licensed. If the tax resolution company does not use attorneys, they should at least be able to verify their existence through their local Chamber of Commerce or through the Better Business Bureau.

The State Bar of California licenses all of the attorneys at Roni Deutch, A Professional Tax Corporation. Proof of their licensure can be obtained through the State Bar’s website, www.calbar.ca.gov. In addition, Roni Deutch, A Professional Tax Corporation can be found on the Sacramento Metro Chamber of Commerce and at the Better Business Bureau website.

7. What is the Anticipated Time Frame for Stopping IRS Collections?

Many individuals first realize that they have an IRS back tax problem when they receive a levy on their wages or bank account. Unfortunately, it is at that moment of panic that many individuals contact tax resolution companies. Tax resolution companies that say, “As soon as you hire us, we will contact the IRS and they will stop the bank levy / wage garnishment,” are seizing on that moment of panic. They are merely telling you what you want to hear.

The tax attorneys at Roni Deutch, A Professional Tax Corporation know that stopping IRS collection takes more than your payment of fees. We also know that you may be stressed out and scared. Therefore, while our professionals will treat your matter with the highest level of urgency, it is important that you know that it does take time. Stopping a bank levy or wage garnishment typically requires a complete presentation of a client’s financial information to the IRS, including the submission of documentation to verify income, expenses, and assets. It also requires that the taxpayer has filed all necessary tax returns. Thus, how quickly we can help you resolve your bank levy or wage garnishment depends in large part on how quickly you can provide us with the information and documentation we need to provide to the IRS to support your tax resolution request.

8. Where Will My Case Be Worked?

Oftentimes, prospective clients let our firm know that they want to work with someone in their local community. Specifically, they want the ability to go into an office and meet with the person that is working on their case. Please be aware that there are tax resolution companies that imply or state that they have nationwide offices, and one may be listed for your local community, but these offices may be used solely for selling their services. Unfortunately, some unwary taxpayers have discovered that once they hired one of these companies, they never met with the person that they thought they originally hired ever again. They also discovered that their case was shipped to a centralized location thousands of miles away and was worked by individuals that the taxpayers never met or spoke with.

Roni Deutch, A Professional Tax Corporation is located in Sacramento County, California. All of our cases are worked here. While we are able to meet with clients at our office, because we represent clients nationwide we primarily communicate with them via telephone, mail, and our website. Once you retain our firm, your case is assigned to one of our attorneys. The attorney will contact you within a few days to introduce him- or herself so you know who is representing you. We boast a state-of-the-art incoming call system, proprietary case management system, and web 2.0-friendly online properties and blogs. We are appreciative of our clients for choosing us to represent them, so we do everything we can to be accessible and responsive to them.

9. What Happens if my Financial Situation Changes?

Much of what a tax resolution company can do is dependent upon a taxpayer’s financial situation. Given the nation’s volatile economy, many taxpayers’ financial situations may change from month-by-month, week-by-week, or even day-by-day. Thus, many taxpayers may find that they no longer qualify for the tax resolution service they hired a tax resolution company to perform. Some tax resolution companies may not have the knowledge to know when a change in a taxpayer’s financial information affects the options available for resolving the taxpayer’s IRS tax debt. They may also not have the knowledge and experience to prepare the necessary documents to file for other forms of tax resolution.

At Roni Deutch, A Professional Tax Corporation, we have the knowledge to identify when a change in your financial situation will affect your options for dealing with your IRS tax debt. We also have the knowledge and experience to be able to change your resolution to one that is appropriate given the change in your financial situation.

10. Do You Have Any Testimonials or Recent Successful Resolutions to Share?

Companies who have received testimonials from their clients are a good indicator of past success. A trustworthy tax resolution company should be more than willing to share with you the successes and compliments they have received over the years.

At Roni Deutch, A Professional Tax Corporation, we have pages on our site dedicated to our Testimonials, Case Studies, and Successful Resolutions. Please visit these pages to get a sense of our history of success. Please keep in mind that the testimonials, case studies, and successful resolutions shared in these links are for informational purposes only and are not intended to and do not constitute legal advice. Nor are they a guarantee, warranty, or prediction regarding the outcome of your legal matter.