Gary Bode, CPA: State litigation closed down Roni Deutch. But the Offer in Compromise can still be an effective IRS resolution tool. For a free initial consult, please call 399-2705.
Who hasn’t seen Roni Deutch, the Tax Lady, on late night TV touting her IRS tax resolution services? NYC won a case against her for $250,000. California is suing for $34,000,000 and she now has surrendered her law license. Yesterday Roni Deutch pleaded Not Guilty to Contempt of Court charges.
This type of operation, like Roni Deutch’s, is called an offer mill. They troll for back tax cases with slick advertising. Usually, they imply an Offer in Compromise will settle your tax problems for pennies on the dollar. This was probably true 15 years ago. But the IRS sharply curtailed use of this technique after the public complained about rampant abuse of it. Now the IRS even charges a fee for filing Form 656. But this hasn’t changed taxpayer expectations that the IRS accepts every Offer in Compromise submitted.
While the Offer in Compromise can still be effective, it is obvious to a back tax CPA when it won’t be accepted by the IRS. They publish well delineated parameters for acceptance of Form 656 after all. We do investigate the possibility however, just to rule it out as a tool. My perception of the complaints against offer mills, like Roni Deutch, is that they spend billable time on an effort they know will fail. Perhaps coupled with poor customer service.
We always take at look at the Offer in Compromise option when we resolve IRS back tax issues. Three legitimate Offer in Compromise approaches exist. Sometimes, with adequate time and planning, your circumstances can be molded to one, or even a blend, of these approaches. But when it becomes apparent that Form 656, Offer in Compromise, won’t work, we move on to look at other alternatives to settle your back tax case. Like an Installment Agreement (Form 9465), for example.
Why Offer Mills Exist
Offer mills exist because the IRS lends itself to gruesome stories about their collection policies. Receiving an IRS CP 2000 Notice in the mail certainly dampens anyone’s day. I think it is human nature to look for magic cures when faced with overwhelming circumstances. Especially when magic cures are known to exist.
And while some folks can handle Form 656, Form 433-A and/or Form 433-B, the entire Offer in Compromise procedure may intimidate first time users. It might be analogous to me roofing my own home. Sure I could get good at roofing, but that first job isn’t going to be as pretty or water tight as I might want it to be.
Last, greedy folks setup shop to exploit the fear and intimidation of taxpayers. As a back tax CPA, I’m glad Roni Deutch is out of business. Tax problems are hard enough without predators causing more financial and emotional duress.
We’re a back tax CPA firm in Wilmington NC that offers IRS tax resolution. However, please note our virtual office allows us to serve a wider geographical base. We’re non judgmental about back tax cases. You can’t be a CPA and not see a lot of good folks having IRS issues. Our goal is get you through the entire process as quickly, cheaply and stress free as possible. We offer a free initial phone consult. (910) 399-2705.