J. K. Harris & Co. Tax-Resolution Firm Raided and Investigated by the FBI
A tax attorney is accountable to a Bar Association and the "highest ethical
standards" are enforced. Enrolled agents, such as those used by J. K. Harris,
have neither Bar Association accountability nor are they required to maintain
a confidential relationship with a tax client.
Be careful of tax practitioners who are not attorneys and who will take your
money and merely provide a mailing service that only costs them $1.00 for
postage. All Offers in Compromise require aggressive representation by a tax
attorney who is prepared to argue that the Offer in Compromise statute, the
tax regulations, the legislative history, and the tax policy to give taxpayers
a "fresh start" by eliminating all tax liability. The IRS will not rule favorably
on an Offer in Compromise unless they are forced to accept it by strong and
aggressive advocacy that only a tax attorney can provide. There is legal precedent
that requires the IRS to be "reasonable and flexible" in OIC cases in addition
to precedent that requires the IRS to consider the facts and circumstances in
each case. Strong and relentless advocacy is essential for a favorable OIC result.
Caution: There are many providers of services on the internet who will
submit your Offer in Compromise forms. Note that taxpayers complete the forms.
These cut-rate "Offer Experts" do little more than mail the forms that you prepare
to the IRS. Anyone can mail in an IRS form, even a five year old child. Note the
following...
1. Taxpayers need to be advised on the numbers. This is critical because
to the extent that you have assets in excess of liabilities, the IRS is
not likely to accept an Offer that is less than the net value of your assets.
Example: If you think that you have a net equity of $50,000 in your home,
and you put $50,000 as the net equity value of your home, the IRS is likely to
argue that your Offer must be at least $50,000 (assuming no liabilities in this
example). But an argument can be made that might reduce that $50,000 to zero or
some other low number and, therefore, reduce the Offer by $50,000.
2. Does your tax lawyer have adequate "skill and experience?"
- Will your tax lawyer be able to advise you on how to value your assets
and liabilities. For example, how would you determine your net equity
in your home?
- Does your tax lawyer have the experience and skill to advise you on how
to calculate your income and expenses?
- Does your tax lawyer have the skill and experience needed to advise you
on the amount of the Offer you should make?
3. Skill and experience is needed in arguing your case.
- Does your tax lawyer know the tax law and IRS internal procedures?
- Does your tax lawyer know how to argue the facts and the law?
- Is your tax lawyer credible?
- Does he have IRS experience?
- Does he know how the IRS thinks?
- Does he know IRS procedures?
- Does he know the limits of IRS discretion?
- Will he be intimidated by an aggressive IRS Offer specialist?
- Will your tax lawyer write a technical memorandum on the facts and
the law to accompany your request for an Offer in Compromise?
4. Does your advocate know when to take the Offer to an Appeal level?
- Why or when should an Offer be taken to Appeals?
- Does your tax lawyer know the Appeal procedures?
- Does your tax lawyer know the discretion that an Appeals Conferee
has and how to present an Appeals case?
- Will your fees cover the Appeal procedure?
5. Is your advocate a Tax Lawyer? Think about it - the issues are
based on facts and the law. Unless your advocate knows how to interpret
the law to protect you, you will not come away with the lowest offer.
IRS Intimidation: The IRS will take advantage of a taxpayer who
represents himself, and likewise if the taxpayer's advocate is weak. If
the IRS can push and intimidate, they will push and intimidate. IRS Offer
specialists will generally have "collection backgrounds" - they want to collect
as much money that they can collect. The IRS must respect your advocate,
or your Offer will be higher than it has to be.
This is where a strong advocate with an IRS backgound is helpful. The
IRS Offer specialist or Appeals Officer knows that they cannot push a tax
lawyer who knows their rules and procedures better than they know their
own rules, procedue, and discretion.
6. The Bottom Line: The least expensive advocate for you may cost
you a lot of money. If you spend only $295 for someone to "mail" in your
Offer forms, then you might be required to make an Offer that will cost
you many many thousands of dollars. You need to know that one advocate
can cost you a huge amount of money because they did not negotiate the
best settlement ($50,000 in extra tax in the above example). The IRS
may succeed in rejecting an Offer submitted by one advocate and
accepting an Offer on the same case to another Adovcate. Competence in
advocacy is obviouosly of critical importance.
