First, we reduced the amount of companies that I say are on the list from 179 to 145 as we wanted to eliminate the companies that were out of business from the count. Those 34 companies are listed here: The Graveyard of Tax Resolution Companies
Second, this list is categorized into Recommended, Industry Stalwarts, New and Unrated and NOT Recommended companies. However there are numerous companies that are on the Unrated List who are excellent with a great deal of time in the business of representing taxpayers: New or Unrated Tax Representation Companies.
Industry Trends: Tax representation companies might be slowing down in creation
As you can see on that new list, we have tracked 14 new companies in 2012 with national aspirations to represent taxpayers. If that rate continues, it will exceed the18 companies that we documented as coming into being in year 2011. We think that this year (2012) won't match 2010 in which 23 companies were created to represent taxpayers.
Folks that is 55 new national companies in THREE YEARS!!! OMG. And yes there is even a new company called OMG TAX!
We do know that the market saturation of tax resolution companies has hurt a few big companies. We won't name the company. But a company in Los Angeles laid off 33% of their staff in January 2012 according to sources. Eventually the industry needs to consolidate. There is a limit in how many companies can perform in this national market to represent the 18% of the American public who is not-tax compliant or owing taxes.
And discerning buyers - PEOPLE like you who are reading this blog - might be reticent about hiring a company with 6 months or even 3 years of experience.
Here's what we recommend to you:
1. Hire a company that has been in business for four to 50 years.
2. Their record is still an A or A plus at the BBB.
3.If their fee is over $4000 - be skeptical.
4. Hire one of the companies on this blog on the Recommended or the Industry Stalwart list (New and Unrated) or hire Washington Tax.