Unethical Tax Debt Resolution Companies' Dubious Policies Do Not Represent the Industry as a Whole

Tax resolution firms under fire for unscrupulous practices in the national spotlight drag legitimate tax relief companies through the mud, highlighting need for federal legislation and oversight.

Encino, CA - Ever since would-be California governor Jerry Brown skewered "Tax Lady" Roni Lynn Deutch back in the summer of 2010 for purposely "engaging in a scheme to swindle taxpayers" (Forbes.com), media outlets have started a trend of lambasting tax debt resolution companies across the board. Brown filed a very public lawsuit against Deutch for grossly overstating the amount of money she could save debt-burdened taxpayers who owed significant backdated sums to the Internal Revenue Service.

Over the past couple years, nationally recognizable firms such as American Tax Relief (ATR), JK Harris, and TaxMasters were either shut down by federal regulators or recently filed for bankruptcy; additionally, JK Harris and TaxMasters are also under investigation for similar issues that helped to take down the Deutch firm. A litany of articles and television news reports have jumped on the bandwagon to lump all tax debt resolution companies into the same flaming heap as the above-mentioned unscrupulous firms-the problem is, not all tax debt resolution companies do business the way ATR, Deutch, JK Harris, and TaxMasters did, which was to take anyone's case and promise them the world, even if they didn't have a legitimate case. These firms also engaged in the dubious practice of not working clients' cases until they were full paid by the consumer, which was generally months after folks hired them, even though they offered their clients payment plans.

"Not all tax problem resolution and mediation firms are created equal," said Michael Rozbruch, founder and CEO of Tax Resolution Services, Co., and part of an association that is working toward regulating the industry to protect consumers. "When some companies make news by doing things the wrong way, it makes the rest of us look really bad-the consumers lose, the legitimate tax debt resolution businesses lose, the taxing agencies lose, and it's just a huge mess that needs to be cleaned up now."

Noticing back in 2010 that the chips were lining up in an unhealthy way in his industry, Rozbruch and a handful of other reputable tax professionals-CPAs, tax attorneys, and enrolled agents-started the Tax Problem Resolution Services Coalition to represent the "good guys" in the industry. "There are a lot of us out there who are credible, spend a substantial amount of time, before being hired, to take a good hard look at each consumer's case and only permit those folks who have legitimate cases to retain us. We do a lot of good work for those taxpayers," said Rozbruch. The coalition has gained so much momentum that it is morphing into an association that will be called the National Association of Tax Debt Resolution Companies. The NATDRC will have its inaugural meeting in Washington, D.C., this coming May 20-21 to unify the collective voice of the professional tax debt resolution industry, with a focused mission to regulate the industry so the unscrupulous businesses will have to either change their ways or get out of the business, so we can all hopefully hear stories about how taxpayers are benefiting from the services of legitimate tax debt resolution companies.

Rozbruch welcomes those who owe $20,000 or more to the IRS, have unfiled income or payroll tax returns or are under, or may be facing, an audit to contact Tax Resolution Services via phone at 866-477-7762 or online at www.taxresolution.com for a free no obligation confidential consultation.

Tax Resolution Services, Co., is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS. Their tax attorneys, CPAs, and tax relief professionals have successfully resolved thousands of cases since 1998 and are committed to making sure thier clients' experiences exceed their expectations. For more information or to receive a FREE tax relief consultation, visit www.TaxResolution.com or call 866-477-7762.

The Tax Problem Resolution Services Coalition (TPRSC) represents the efforts of a broad spectrum of the industry located throughout the United States. Its mission is to promote and ensure the protection of taxpayers from unfair and deceptive advertising claims by unscrupulous delinquent tax debt representation providers. The coalition welcomes additional members that support this mission. The coalition's work will be reported through its new web page at http://www.taxproblemresolutionservicescoalition.com and through its newsletter.