As our postings Fees for Tax Representation
and Five Different Interviews
show, there is a huge disparity in the fees that tax resolution companies charge their clients. We have been reflecting recently on an interaction we had with a potential client in Texas about the various fees he was quoted to represent him on his tax issue.
The fellow, a blog reader, has a very old liability for year 2000, that hasn't expired yet due to a long Bankruptcy issue...The debt is over $100,000. He will probably qualify for an Offer in Compromise, as he is going to university and his income will be very tight. Our staff will represent him and get him the best deal under the law. But we think it will be an Offer. So, our fee to represent him throughout the process: $1500.00.
He also spoke to Alvin Brown and Associates in NY. Mr. Brown who is an attorney quoted him a $4000 plus fee. Mr. Brown has been in the business a long time and seems to be a reputable firm.
Freedom Tax Relief in California also quoted a fee just a bit over $4000.00. Freedom Tax seems to be a decent company ALBEIT you do have to deal largely with "salespeople" on the front lines.
We wanted to illustrate the disparity of fees also for the slightly humourous reason that our potential client was concerned about Washington Tax Services...because we charged so little?!
And we told him very succinctly...no, nothing wrong with us.