I was part of the CNC program for 5 years but was removed after my income went up. The IRS contacted me and offered a payment plan of $710 a month after going over my finances. I searched around and found a tax relief company that promised they could lower what I owed for $4250. They said they would help with fees, penalties, and review my returns. I sent them the money and the forms they asked for. After submitting everything, they came back quickly and said the best they could do was the same $710 monthly plan the IRS had already offered me. So, I paid $4250 for nothing. They didn’t help with fees or penalties. They didn’t even represent me with the IRS. Be careful who you trust; some of these companies aren’t honest.
That sounds more like a tax resolution company than an actual tax pro. If you had asked here first, people would have suggested saving your money. These companies often charge a lot to do something you could handle yourself for free, or a proper tax pro could do for less.
I remember a thread here about this kind of thing. You probably spoke to a salesperson, not an actual tax professional. You should consider finding a local EA, CPA, or tax lawyer for real advice.
It hurts to hear that you spent $4250 when that money could’ve gone toward your actual tax debt. Sorry to hear this happened, but it’s a tough lesson learned. Hopefully, others will see this and avoid the same mistake.
The IRS recently put out a warning about these tax resolution mills. IRS Warns Against Unscrupulous 'Mills' Advancing False Claims of Guaranteed Tax Settlements.
It doesn’t sound like you dealt with a real tax pro. If they couldn’t reduce fees or penalties, they didn’t really help. A good CPA would have been upfront with you if they couldn’t make changes. They should’ve refunded you if they overpromised.
Tax firms shouldn’t be so focused on sales. In your case, going directly to a CPA or tax attorney would’ve probably been better. I run a firm, and understanding the client’s needs upfront is key to offering the right services.
These companies prey on people. They offer to file Offers in Compromise or installment agreements, charging thousands for something you can do yourself for free or with minimal help from a CPA.
I’m sorry you had to go through this. These companies are often a waste of money. You’re better off dealing with the IRS directly with the help of a trusted tax professional.
I work for a tax resolution firm, and while we do save clients money, a lot of what we do could be done without paying us. It’s frustrating. Many clients don’t need us and end up paying for services they could do themselves. It’s disheartening to see how much we charge when the client could use that money toward their actual tax debt.
Even legitimate tax pros make mistakes sometimes. It’s always a good idea to have some basic knowledge yourself and double-check things.