Encino, CA – Unscrupulous tax debt resolution companies have been toppling like dominoes of late, with the recent fall of Texas-based TaxMasters the latest and probably the most publicly disastrous of all. After the company, owned by Patrick Cox, finally declared bankruptcy one day before it was set to face more than 100,000 violations of Texas’ Deceptive Trade Practices Act, a jury ruled against TaxMasters to the tune of $195 million in consumer restitution, fines and civil penalties, the most substantial decision ever in these types of cases. The root cause of their violations is threefold; deceptive trade and sales practices, not issuing refunds to deserving consumers and the fact that they advertised and accepted down payments for their services but, unbeknownst to the clients, the company failed to start work on a consumer’s case until their fee was paid in full which was months after the company was hired. In an article published in the April 9, 2012, issue of TaxNotes, author Eric Kroh interviewed Tax Resolution Services, Co., CEO Michael Rozbruch, who discussed the need for the tax debt resolution industry to work with federal and state regulators in order to root out companies like TaxMasters operating with unscrupulous and deceptive trade practices.
“It’s become crucial for our industry to unite now to pass legislation that includes appropriate oversight before that choice is made for us, which could make it nearly impossible to do business,” urged Rozbruch. “We owe it to taxpayers—our clients—and we owe it to ourselves; those of us who operate with our own legitimate, credible standards. People need to realize that not all tax debt representation companies are like TaxMasters.”
Rozbruch helped found the TPRSC in 2010 with that goal in mind, and the coalition has gained so much momentum that it is morphing into the National Association of Tax Debt Resolution Companies (NATDRC), which will hold its first conference May 20-21, 2012, in Washington, D.C. Karen Hawkins, Director of the Office of Professional Responsibility, for the IRS, is scheduled as the keynote speaker. Her office regulates practitioners who practice before it.
Rozbruch hopes that the conference will spawn a draft of federal legislation with the industry’s unified stamp of approval to make incidents like what’s happening with companies like TaxMasters a thing of the past.
“Not all tax debt resolution companies were created equal,” said Rozbruch, “and the time has come to take the helm and steer this ship in the right direction.”
Rozbruch welcomes those who owe $20,000 or more the IRS, have unfiled tax returns or are under audit to contact Tax Resolution Services via phone at 866-477-7762 or online at www.taxresolution.com for a free no obligation consultation.
Tax Resolution Services, Co., is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS. Their tax attorneys, CPAs, and tax relief professionals have successfully resolved thousands of cases since 1998 and are committed to making sure our clients' experiences exceed their expectations. For more information or to receive a FREE tax relief consultation, visit www.TaxResolution.com or call 888-851-5894.