Posts Tagged ‘TaxMasters’

Tax Roundup, 4/2/2012

Monday, April 2nd, 2012 by Joe Kristan

Nikki Haley

So South Carolina Governor Nikki Haley is not facing a tax indictment after all.  The TaxProf rounds up the retractions

I’m sure they can settle it for pennies on the dollar:TaxMasters slapped with $195M fraud judgment“ 

What is an IRA? Courtney Todd Strutt explains at the Davis Law Tax Blog

Iowa says same-sex couples can marry, but IRS says they can’t file joint returns.  What are Iowa rules?  Jason Diensen looks at the question “Must Same-Sex Married Couples in Iowa File Iowa Taxes as Married?

Bonus! Martin Sullivan asks, “If Mandate Is Struck Down, Are Tax Incentives Next?” Via the TaxProf.

Congratulations!  You won the Mega-Million jackpot, and some free tax help from Janet Novack and Anthony Nitti.

 

 

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When you really only have pennies to pay the dollars

Tuesday, March 20th, 2012 by Joe Kristan

The collapse of the late-night cable TV tax settlement industry proves that “pennies-on-the-dollar” tax settlements aren’t easy to come by.  If they were, that business model would be a license to print money. 

But sometimes taxpayers are really so broke that they will never catch up on their tax debts.    TaxGrrrl explains how the IRS Offer in Compromize program really works, with this wise advice:

OICs are not home runs. The IRS tends to reject a majority of OICs that are submitted; in fact, the acceptance rate is less than 1 in 4, according to the 2010 IRS Data Book (downloads as a pdf). That’s why you need to think long and hard before you jump into an OIC…

If you’re in the market for an OIC, hire a competent tax professional who understands the rules (including any applicable deadlines) and will respond promptly to IRS.

Russ Fox has more on the travails of tax settlment firm TaxMasters.

Links: Old-plaform posts tagged “Russ Fox” and “TaxGrrrl

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More pennies on the dollar!

Monday, March 19th, 2012 by Joe Kristan

Another one of the late-night TV tax settlement outfits apparently is on the rocks.  Janet Novack of Forbes reports that TaxMasters is facing a bankruptcy filing:

If you’ve got problems paying the Internal Revenue Service, don’t look for help from the ads on late night cable television.  That’s one of the lessons from an SEC filing Friday by TaxMasters Inc., disclosing the publicly-traded company will file for voluntary bankruptcy. 

TaxMasters is only the latest casualty in the “pennies on the dollar” tax settlement business.  JK Harris and Roni Deutch, the Tax Lady, have shut down in the last year. 

 The late night TV tax settlement outfits promise to settle tax debts, but they have all been plagued with consumer protection complaints from state attorney general offices.  The complaints typically say that the outfits charge their clients up-front and often fail to solve any tax problems. 

In real life, “pennies on the dollar” deals through the offer-in-compromise process are the exception, not the norm.  When the IRS does compromise, it is normally because the taxpayer is very truly broke, which is a hard way to go to get a tax break. 

 I believe their late night pitches encourage tax carelessness and recklessness.  After all, why report all of my income or pay to have my taxes done when I can always get off for pennies?  Unfortunately, I expect other tax settlement outfits to step right up and take their turn gulling the gullible.

UPDATE: Bankrupt TaxMasters Lists Less Than $50,000 In Assets, Up To 5,000 Creditors

The TaxProf has more.

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