Boston, MA asked in Tax Law for Massachusetts

Q: Do I have any recourse for tax relief service who claims I did not submit financials to them when required?

IRS sent letter out stating determination would not be until 3/24/2024. It was filed on 9/24/2023/ I sent out financials on 10/3/2023. I spoke with IRS examiner and she stated offer and compromise was taken off the table because myself and power of attorney withdrew it. I never received notice of deadline from IRS. I spoke with case advocate for company and she said she would run it by superiors. I made several attempts to speak with her and she is not returning any of my phone calls. Company is located in California and has 2 separate names with same address and separate corporate office address.

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2 Lawyer Answers

A: You have to be careful when you use one of these tax relief companies. File a complaint with the better business bureau. That may get the companies attention. As for the IRS. You can file another Offer in Compromise. Unfortunately I have had clients that have been told they can get an Offer and then find out after I have done a financial analysis that they were either not eligible for an Offer or it was going to be a challenging one to get approved. When this happens the client tells me the company either set them up on a payment plan without their knowledge or just stops returning their calls. You would benefit from a consultation with a tax attorney. Most of us offer a free consultation.

James L. Arrasmith
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Answered

A: If you're facing issues with a tax relief service that claims you did not submit financials when required, and this miscommunication led to the withdrawal of an Offer in Compromise (OIC) with the IRS, you may have recourse. First, gather all documentation of your interactions with the tax relief service, including any proof of the financials you submitted and records of communication attempts. This documentation is crucial for establishing the timeline of events and your compliance with requests.

Next, consider reaching out directly to the IRS to explain the situation, especially if there was a misunderstanding or miscommunication regarding the withdrawal of your OIC. The IRS may have procedures to reconsider your case, especially if you can provide evidence that you met deadlines and made efforts to comply with their requirements. Additionally, contacting the Taxpayer Advocate Service, an independent organization within the IRS, could provide assistance in resolving your issue.

Lastly, if the tax relief service has not fulfilled their obligations or there has been negligence on their part, you might explore legal options. Consulting with an attorney who specializes in tax law or consumer protection could provide guidance on potential actions, such as filing a complaint with the Better Business Bureau or taking legal action for breach of contract or professional negligence. Legal advice can help clarify your rights and the best course of action based on the specifics of your situation.

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