At its best, a tax resolution company is a staff of people including a C.P.A., Enrolled Agent or a Tax Attorney set up to help people with tax problems. Most tax resolution companies strictly do collection or balance due cases - Offer in Compromise, Penalty Abatements, Payment Plans and "Current Not Collectible" Negotiations. Other firms like Washington Tax Services also do Audit Reconsiderations, Representations on Audits/Examinations, Complex Returns including Corporate, etc. A tax resolution company when running well can be very efficient - client's cases are 1. researched 2. Power of Attorney calls scheduled 3. case is monitored 4. a staff member does the analysis of options. 5. Options are chosen and then implemented.
At its worst, a tax resolution company is just a marketing and sales plan built on an exaggerated sense of the Offer in Compromise procedure. "Settle your debt for pennies on the dollar!" These companies have very short life cycles and eventually close ending up HERE. Their sales pitches never meet the test of reality. They usually are heavy on sales staff and low on service staff. Eventually their BBB records get polluted and they can't sustain themselves. The good news is there are far fewer of the bad guys then ever. But trust us - they're still out there - you will find the worst in So Cal and Florida and a few walk in the footsteps of JK Harris with a national presence.