The lifecycle of these tax resolution companies is as follows:
1. Large Dollar Outlay for marketing. Taxmasters had their TV commercial. So did JK Harris. Other's are spending big dollars in search engine optimization or Google Ad words.
2. Excellent and aggressive sales people. The high-fiving salespeople come from all walks of life -- unemployed actors, people with lovely voices and charms. People who can bend the truth a bit and who can really emphasize the urgency in which people need to resolve their tax issue.
3. No system for effective customer service and client fulfillment. Sales first, customer service last is their motto. Uninspired and low paid employees are entrusted to handle the clients while the high-fiving salespeople run around the office after closing the big deals.
4. Unscrupulous and greedy owners. They know it. Their company is growing. The ads are generating tons of new clients. They should spend more money hiring customer service support and licensed tax professionals to serve their growing clientele. But they get greedy.
Roll these four things together: and you have a company that is either going to die with their F rating at the Better Business Bureau unable to generate new business due to their polluted BBB record. Or face legal action from the Attorney Generals in their state, the IRS, Office of Professional Responsibility or another authority. They eventually end up in the Tax Resolution Graveyard.
I predicted Taxmasters and JK Harris' closures. Who's next? Who is the next tax resolution company to be exposed for ripping off their customers? Any company on one of these two lists: might be next: Not Recommended Tax Resolution Company List or New Tax Resolution Companies List
Folks if you are shopping for tax representation, please be careful.