by Jay Freeborne , Enrolled Agent
January 6, 2010

Looks like they walked into a "local" office of JK Harris in Federal Way, Washington. They owed $100,000 in 941 taxes. The salesperson at the Federal Way office indicated there was a 98% chance that they would get an Offer in Compromise on their debt. What a joke. Basic problem: the IRS is usually not open to taking Offers from open corporations.

However, the taxpayer did pay JK Harris $6000.00 (!!!!!!) to represent them. JK Harris did take on the case, and sent in an Offer in Compromise to the IRS for the taxpayer for $3000.00 to settle their debt. Another problem: taxpayer's net worth was far in excess of $3,000.00, guaranteeing that the Offer would be rejected.

An easier solution was forthe taxpayer to close their corporation and see if debt would go to the grave with dead business. Potentially, IRS could assess trust fund against the taxpayer and that would be dealt with separately (about $50,000.00). But what JK Harris did is just take an excessive fee for really, really poor and frivolous work.

Buyer beware.

I did recommend to them to ask for a refund from JK Harris, threatening to report the professionals on the 2848 form (Power of Attorney) to the IRS Office of Professional Responsibility. This really works! Read my post about refund requests here: http://watax.com/blog/getting-your-money-back-from-tax-relief

For 30 years, WATAX has been solving every kind of tax problem. Call us at 1-888-282-4697 or email us a description of your tax issue and we'll contact you.

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