I’ve already mentioned the fatal flaw in the BBB ratings equation that does NOT take into account a business’s size relative to the number of complaints it has received. We have a B rating, despite out have a 99% customer satisfaction score because the BBB bases it’s rating on the 20 complaints that are listed on our BBB report in the last three years – amongst thousands of satisfied customers.
Additionally, the BBB says that they only hold the complaint against the business for 36 months. However, the complaint stays on your report even if you refund the client back 100% of fees paid. In other words, once a consumer makes a complaint against you, you are penalized and the outcome is irrelevant to the BBB. So, even though the complaint is dropped by the consumer, the “black mark” stays on your report for 3 years! They could care less if you completely ignored the customer and did nothing or if there was simply a misunderstanding and the company makes everything right with the consumer. How is this fair??
Under the Los Angeles BBB’s current rating formula we are penalized each and every time a new complaint gets registered, regardless of our size and how many taxpayers we serve annually - even if the consumer decides to withdraw the complaint. Thier ill-convceived algorithmic formula has ended up working against us – since we are by far the largest (and most credible) tax resolution firm, West of the Mississippi.
I came across an interesting article in the Los Angeles Times about how the Better Business Bureau grades companies on a peculiar curve. It calls attention to the fact that paying the BBB to be listed as an accredited business appears to have instant benefits in the agency’s ratings.
So an accredited business automatically receives a half-grade boost to its rating. A B-minus business, in other words, will become a B.
And according to Steve Cox, a spokesman for the Better Business Bureau, the highest grade an unaccredited business can get is an A. Only an accredited company — in other words, one that pays an annual fee — can receive an A-plus.
I am well-aquainted with the shortcomings of the BBB ratings system. TRS has been a paying accredited member of the BBB for nearly 11 years. When I joined, I was a firm of 2 people. In 2005 we expanded our business nationally and grew very quickly. Today we are a firm of 50 people, 10 of which are licensed professionals (either tax attorneys, CPAs or EAs).
My partner and I are both active, licensed CPAs. And for the first few years with the BBB, we enjoyed an AAA rating. We also only serviced about 100-125 clients per year back then and we essentially didn’t have any complaints.
We soon learned that there is a good reason why large companies do not subscribe to BBB membership.
Today we are rated a B- and we service about 175 new clients per month or approximately 2,000 plus clients per year and growing. And we just expanded to help more taxpayers and we signed a new lease for 11,000 square feet with the same landlord we’ve been with since 1998.
In reality, we have a 99% customer satisfaction score! That’s based on the inverse of the complaint ratio. There are currently 20 complaints that are listed on our BBB report that encompass the last three years – amongst thousands of satisfied customers. So out of servicing 6,000 clients – that’s .004% of our customers who have filed a complaint!
Additionally, it appears that the BBB has NOT started working on a new equation to take into account a business’s size (even though they have told my attorney that they “are currently working on a model that will incorporate this (size) factor into the rating”).
I have been diligently working with the BBB to resurrect our ratings to where it SHOULD be, which is in the “A”’s.
I was recently asked to write an article for CPEthink.com, an organization dedicated to providing industry-leading online Continuing Professional Education (CPE) and Professional Development courses and exams for CPAs, licensed professionals, general practitioners, and individuals.
My article discussed how victims of investment fraud are turning to Uncle Sam for relief – but they should be ready to face increased IRS scrutiny. I’ve blogged before about how Section 165 of the IRS Tax Code can help taxpayers seeking investment fraud recovery and the importance of expert specialized audit representation when dealing with the IRS during this process.
For more advice and information on investment fraud recovery, contact our specialized staff of tax attorneys, CPAs, EAs and tax professionals. You can visit the Tax Resolution Services web site for a free tax relief consultation or call 866-477-7762.
During this economic downturn, we are also seeing lots of people who are laid off or are no longer employed, going out on there own. They’re reinventing themselves, setting up home-based businesses, and providing their services as independent contractors.
With small business audits on the rise, it is more important than ever to know what triggers an audit, how to avoid being audited and what to do if the IRS is after you. This kind of knowledge could save you lots of money and protect the future of your business.
There are far too many business owners looking over their shoulders in fear of the IRS. And in 2009, we can expect the number of IRS audits to continue to rise for small-business owners. And for anyone planning to start and/or grow your business, it is crucial to know how to avoid tax trouble.
With the recent economic crisis, tax authorities at both the federal and states levels are pouring more money and personnel into cracking down on tax cheats – large and small – to cut into their growing budget deficits. It’s always sobering when I tell people that 25% to 30% of my tax relief clients are small businesses with tax problems.
If you are struggling to overcome your tax burdens, know that knowledge is power and the key to gaining a new lease on your financial life.
“Standing Up to the IRS Un-Armed Can and Will Cost You” will be broadcast live by phone starting at 4:00pm PST on February 18, 2009.
I was recently interviewed for This Week In Chaves County, which airs Sunday at 7:00 a.m. on KEND 106.5 FM (Roswell, NM). I talked about opportunities for recession burdened Americans to settle IRS debt.
Please tune in – or check out the video below for a preview of the interview. Resolve your back taxes and say goodbye to wage garnishment, bank levies, and IRS penalties!
If you are in trouble with the IRS, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-477-7762.
It’s always great to hear from satisfied clients after we’ve helped them resolve their tax problems. We recently helped a taxpayer in Southern California gain his financial livelihood back. He was sick and unable to pay his back taxes. We were able to negotiate a penalty abatement on his behalf.
Peace of mind. Shelly has been outstanding and very helpful. I have Stage 4 Pancreatic Cancer and Shelly has always had a positive outlook for me even when I don’t. I can’t tell you how good that makes me feel. Shelly went out of her way to take the pressure off of me and my illness on many occasions. I can’t thank her enough.
James W., Costa Mesa, CA
The IRS Can assess 148 different types of penalties, including failure to file and failure to pay your taxes. However, if you are hit with IRS penalties, you can request that your penalties be completely or partially removed. In many cases where a taxpayer requests abatement, the IRS removes 100% of the penalty.
If you are in trouble with the IRS, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-477-7762.
I was recently interviewed by Business Pundit blogger Lela Davidson. She asked me lots of great questions about small business taxes and how to avoid being an IRS target. I provided her with insight into important tax issues facing new businesses and how to avoid the big mistakes that many small business owners make.
There are many things small businesses can do to avoid getting audited. But if you still find yourself in trouble with the IRS, you are going to need help from expert tax resolution professionals who can help you solve your tax problems.
If you are in trouble with the IRS, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-477-7762.
Every month I choose a very special Client Of The Month. It’s my way of acknowledging good friends and saying “thanks” to those who support me and my business with referrals, word of mouth and repeat business.
This month’s Client Of The Month is Merlinda Metz.
When Ms. Metz contacted our firm, she owed the IRS over $85K. Our negotiations resulted in the IRS accepting a little over $2K, via the federal government’s Offer In Compromise program, A savings of over $83K. Outstanding!!!
Congratulations Ms. Metz.
You might be my next Client Of The Month too! Watch for your name here in an upcoming month.
Thanks for the Kind Words… “Although I had moments of frustration, because the process is frustrating, I was very happy with the way things were resolved. It is a huge relief to have my back taxes dealt with. I would have never been able to make a dent on my own in what I owed”. -M. Metz
Just wanted to let everyone know that we’ve recently expanded to help even more Americans seek tax relief!
It’s very exciting – we’ve just finalized lease negotiations for 11,000 square feet of commercial office space just north of Los Angeles, at our headquarters in Encino, California. Our company now boasts more than 50 legal and tax specialists, and our licensed professional staff consists of 6 Tax Attorneys, 4 CPAs and 2 Enrolled Agents.
In addition to being the Nation’s Leading Tax Negotiation and Mediation Firm, I am proud to say that our ratio of licensed staff professionals to number of clients is the highest in the country!
Check out our tax relief success rate! Our team of tax experts has has a success rate of 90% – second to none in the industry and an Offer in Compromise Settlement Rate of $0.13 on the Dollar. We’ve saved our clients more than $35 million in the last decade!
If you are in trouble with the IRS, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-477-7762.
Just had to share this great note that I recently received from a client.
Douglas T., of Tioga, Louisiana says:
TRS is a wonderful organization that is prepared to help the average citizen do battle with the IRS. The result I got from TRS was no less than a small miracle. After having the IRS threaten me time and time again, and then to finally have someone on my side was just fantastic. Even after initial consultations with TRS, I never expected to have such a great result. To find out after months of worrying that I would owe the IRS nothing was just wonderful. Thank you so much for going to bat for me and taking on the Dark Side of our government.
If you are in trouble with the IRS, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-477-7762.
Faced with overwhelming tax debt, more Americans than ever will be hoping to qualify for the IRS Offer in Compromise (OIC) program and save thousands of dollars in taxes, penalties and interest.
In 2007, approximately 46,000 offers were submitted to the IRS nationally and only 12,000 were accepted. This year, there will be more offers submitted this year, as well as a higher IRS acceptance rate due to the state of the economy.
While the OIC program can offer relief to Americans who have exhausted all financial resources available to them to pay their taxes, it also allows the government to collect a negotiated payment from distressed taxpayers now, which helps the IRS save on the administrative costs of going after people who simply don’t have the money to pay their tax debt.
So the government can collect a negotiated payment from distressed taxpayers now and instead of wasting time and resources trying to draw blood from a rock.
To qualify for an OIC, taxpayers must prove to the IRS that they have exhausted all financial resources available to them to pay their taxes. For example, homeowners are typically declined for OIC settlements. But without home equity to fall back on, many distressed homeowners may now be able to negotiate a reduction of their tax debt.
However, taxpayers need to remember that that the OIC program is a privilege, not a right, like bankruptcy. And taxpayers should beware of tax resolution companies that guarantee specific results. Our acceptance rate on offers we submit is nearly 5 times (approximately 90%) the national average. Why? Because we don’t allow clients to retain us to submit frivolous OICs.
When the economy was strong, the IRS tightened the rules on the OIC program, but now things have changed and there are lots of people that deserve to take advantage of the program.
If you are in trouble with the IRS, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-477-7762.
I was recently interviewed by Martin Vaughan from Dow Jones News for an article he was writing about the new circumstances under which the IRS would consider Offer in Compromise settlements that it would otherwise have rejected because of a home equity issue.
Under the Offer in Compromise program, the tax collector may settle with a taxpayer for less than the full amount of taxes owed. Under previous guidelines, the IRS does not generally accept compromise offers from taxpayers who have untapped home equity.
I told Vaughan that tax lawyers and professionals will definitely be testing the IRS’ new flexibility on the home equity front:
“I think you will see a huge spike in requests for offers in compromise,” said Rozbruch. “In 2006 and 2007, we weren’t doing a lot of offers, because people had equity in their homes, and they didn’t qualify,” he said.
But Rozbruch said the real driver for compromise offers is the the bursting of the real estate bubble, not the IRS promise of flexibility. “There are a lot more people now with net zero equity,” he said.
If you are in trouble with the IRS, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-477-7762.
The 2008 collection enforcement numbers would have been higher had the attrition rate at the IRS (agents/officers retiring) not risen by some 10 % when compared to 2007. The IRS must hire new collection Revenue Officers and more Examination Revenue Agents as a good portion of this part of their work force is at or near retirement age. Congress has already appropriated billions of dollars to the Treasury Department to do just that. Expect 2009 IRS collection numbers to keep pace or exceed that of 2007!
If you are in trouble with the IRS, our specialized staff of attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-477-7762.
The IRS issued a statement saying that they are taking steps to help financially distressed taxpayers. Depending on the circumstances, taxpayers in hardship situations may be able to adjust payments for back taxes, avoid defaulting on payment agreements or possibly defer collection action.
In other words, for taxpayers who have lost their job, seen a significant decline in their income, been forced to close down their business – the IRS “may” delay collections or adjust payments for back taxes, avoid defaulting on payment agreements or possibly defer collection action.
The operative word here is “may.” In any event, the American taxpaying public will need expert tax representation now more than ever to navigate these muddled waters.
If you believe you may have trouble paying your tax bill, know that it is critical to file your tax return even if you are unable to pay – so that you can avoid additional penalties.
What we tell our clients is that no matter how much is owed, if they enclose a check for $5 or $10 with the return and file it on time it cuts down on the failure to file penalty and it creates a record at IRS that says you actually filed on time and they have to post that $5 or $10 check to your account.
The IRS also reminds people that they may be able to provide assistance for people who owe taxes by offering the following:
* Postponement of Collection Actions: IRS employees will have greater authority to suspend collection actions in certain hardship cases where taxpayers are unable to pay. This includes instances when the taxpayer has recently lost a job, is relying solely on Social Security or welfare income or is facing devastating illness or significant medical bills. If an individual has recently encountered this type of financial problem, IRS assistors may be able to suspend collection without documentation to minimize burden on the taxpayer.
* Added Flexibility for Missed Payments: The IRS is allowing more flexibility for previously compliant individuals in existing Installment Agreements who have difficulty making payments because of a job loss or other financial hardship. The IRS may allow a skipped payment or a reduced monthly payment amount without automatically suspending the Installment Agreement. Taxpayers in a difficult financial situation should contact the IRS.
* Additional Review for Offers in Compromise on Home Values: An Offer in Compromise (OIC), an agreement between a taxpayer and the IRS that settles the taxpayer’s tax debt for less than the full amount owed, may be a viable option for taxpayers experiencing economic difficulties. However, the equity taxpayers have in real property can be a barrier to an OIC being accepted. With the uncertainty in the housing market, the IRS recognizes that the real-estate valuations used to assess ability to pay may not be accurate. So in instances where the accuracy of local real-estate valuations is in question or other unusual hardships exist, the IRS is creating a new second review of the information to determine if accepting an offer is appropriate.
* Prevention of Offer in Compromise Defaults: Taxpayers who are unable to meet the periodic payment terms of an accepted OIC will be able to contact the IRS office handling the offer for available options to help them avoid default.
* Expedited Levy Releases: The IRS will speed the delivery of levy releases by easing requirements on taxpayers who request expedited levy releases for hardship reasons. Taxpayers seeking expedited releases for levies to an employer or bank should contact the IRS number shown on the notice of levy to discuss available options. When calling, taxpayers requesting a levy release due to hardship should be prepared to provide the IRS with the fax number of the bank or employer processing the levy.
If you are in trouble with the IRS, our specialized staff of tax attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-477-7762.
According to a recent article in the New York Times titled For Victims of Schemes, the I.R.S. Can Be Flexible, a bailout for Madoff victims would cost federal, state and local governments as much as $20 billion.
While a spokesman for the Internal Revenue Service declined to comment on the Madoff case, there is still speculation in the media and amongst tax professionals as to whether investors will be able to successfully seek redress from the federal government for losses stemming from Madoff’s $50 billion Ponzi scheme.
Under Section 165 of the IRS Tax Code, investors who paid taxes on investment gains that turned out to be false can recover some of their money back in the form of tax deductions or possibly even refunds.
Ultimately the IRS will have to cave in to taxpayers seeking investment fraud recovery, but not at the first level of defense. This will take place at the Appellate level or in the Courts.
That is exactly why people require expert specialized audit representation when dealing with the IRS, especially because the IRS will reject all of these amended returns for prior years.
For more advice and information on investment fraud recovery, contact our specialized staff of attorneys, CPAs, EAs and tax professionals. You can visit the Tax Resolution Services web site for a free tax relief consultation or call 866-477-7762.
News, commentary, insight, tips and humor from tax expert Michael Rozbruch
Michael Rozbruch is a Certified Tax Resolution Specialist, a member of the American Society of IRS Problem Solvers and a Maryland CPA.
IRS PROBLEMS?
If you find yourself in trouble with the IRS and need professional tax attorney and tax resolution services, call (888) 699-7630. Effective tax negotiation and representation means that your tax attorney, Certified Tax Resolution Specialist or CPA will take over all communications with the IRS, filing any delinquent tax returns to bring you to full IRS compliance while vigorously defending your rights as a taxpayer to permanently resolve your back taxes and IRS problems.
In 2008, the IRS collected $56.4 billion – $7.7 billion more than in 2006. This was only slightly down from 2007’s record year of $59.2 Billion.
