In July I received a post card from a company called Tax Incorporated. They claimed to be able to help people who have back taxes owed to the IRS and State taxing authorities.
After going on the web to the Better Buisness Bureau to check this company out, I decided to give them a call (they were a member of the better buisness bureau and had maintained a satisfactory record).
When I called Tax Inc. I was directed to a Rebecca Sando. She explained to me that there are guidelines in place that the IRS and Local Taxing Authrities must follow when paperwork for tax relief is requested. I told Rebecca the amounts of money that was owed to the IRS and my local tax authority (State of Michigan). Rebecca told me that I did not owe enough money to the IRS, but they could definitely handle the State of Michigan.
Rebecca explained to me the process that is used to relieve some of the tax debt, it is a form called an "Offer in Compromise". I asked Rebecca how long does this process usually take to be completed, she told me usually 3 to 6 months. I explained to Rebecca that if a final review took up to 6 months for the state to complete, with the amount of monthly payments I was making plus Tax Inc's fee, it would not make it worth my time to attempt this procedure. Rebecca told me that if I decided to hire Tax Inc that I didn't have to continue the monthly payments. I asked her why, she stated that all collection activity would be stopped while the offer was being considered.
On July 18th I decided to hire Tax Inc. I did a check by phone for 1500 dollars for them to represent me.
Within a few days of hiring Tax Inc, I received a questionnaire form, which I promptly completed and returned.
In August I received a package from Tax Inc containing a completed Offer in Compromise with instructions. The letter stated that although the State of Michigan does not have their own Offer in Compromise forms, the IRS forms were acceptable.
After a final review of the forms for correctness, I was instructed by Rebecca to sign, date and mail a copy to the State of Michigan in the envelope provided. She also had me mail a copy back to Tax Inc.
In January I received a notice of intent to levy or place lein against me by the State of Michigan, I promptedly notified Rebecca. Rebecca had me fax a copy of the letter to her. I spoke to Rebecca later on that day and she informed me that the notice had been forwarded to one of their attorneys and she would contact me when the attorney got back to her. Rebecca called me the next day to say that one of their attorneys had talked to the State of Michigan and everything was cleard up, she also informed me that my offer was currently under review and not to worry I should be hearing from the state sometime in March.
On March 22 I received a notice of levy against my wages from my employer, not the response I was expecting. I called Rebecca and left several detailed messages on her voice mail and with her receptioness.in the middle of the evening I was finally told that Rebecca had went home early without returning my call.
On March 23 I left more messages with Rebecca, after not receiving a return call, I asked to speak to anyone who could attend to this matter. One lady told me she would make sure that I received a call back from Rebecca.
Rebecca Sando called me back on March 23 to tell me that she had received the notice of Levy order against my wages and forwarded it to the department that handles levy orders. She said they would have this corrected promptly.
On March 26 my entire paycheck was taken by Levy ordered to the State of Michigan. I called Rebecca and notified her that my paycheck had been levied. She asked me to fax proof that I had actually mailed the offer in compromise. I told her it was mailed certified and that I sent the proof of receipt from the state with the information that was faxed to her on the 22nd. She then told me that I hired Tax Inc to prepare an Offer in Compromise and that handling levies is a seperate service provided for another fee. I reminded her that I was not in levy status when I hired Tax Inc, I had a payment plan worked out with the state which was in good standing, and the only reason that the payment plan was discontinued was because she had advised it. Rebecca then told me that their was more than one branch within my state taxing authority, one had received the offer one had not. I then told Rebecca that if she could not give me proof that the levy had been lifted by the following week I would like a complete refund, at this time she offered her supervisor, a Mr Paul Valentine, as someone who could help me further.
I left several voicemail messages with Paul Valentine. He returned a call on March 29th to quickly say they were working on my case, that he had to go because he had other clients on hold. I responded by asking him were all of these clients in levy status also, he replied goodbye gotta go and hung-up the phone.
On March 30th I filed a complaint with the Better Buisness Bureau against Tax Inc. They notified me that they allow 2 to 4 weeks for the member company to respond.
On April 1st I called tax inc to speak to Rebecca Sando, after the receptionist asked who I was she forwarded my call to Paul Valentine. I asked Paul had the levy been lifted against my wages, he responded that he had received the complaint from the Better Buisness Bureau and because of that all correspondense would be handled through the Bureau. After Paul stated that everthing should be handled through the bureau, I asked for a refund of fees, Paul hung-up.
On April 23rd I contacted the Better Buisness Bureau again to see if there was a response from Tax Inc. The response was that they were hired to prepare an offer in compromise, generally this will stop all collections, the client has since been levied at no fault of our own, In good faith they were trying to have the levy removed although this is normally a seperate fee. I responded that this was unsatisfactory, that my levy status was a result of me following the advice they had given.
On April 28th I went to the better buisness bureau to see if there had been a response to my follow-up complaint, at this time I found that the case had been closed and that I couldn't view the response.
On April 29th I called the Better Buisness Bureau to state that the case had been closed and I was never notified. The Bureau attendent then read the final response, which restated their original response. At this time I requested to use the arbitration service to settle the case. The attendant then informed me that Tax Inc was not a member of the Bureau and that because of this I couldn't use the arbitration service. Totally shocked I asked how long had Tax Inc not been a member, she told me they let their membership go on April 22nd.
For those of you who do not know, when a taxing authority levies your wages it can be for the entire amount. I have been trying since March 30th to have the state levy lifted against my wages by explaining my situation and filing paperwork to re-enter into a payment plan. Several agents have told me that Offers in Compromise are not acceptable by the state unless they are offering an amnesty program.
Buyer beware, because of my dealings with Tax Inc. I have gone 2 MONTHS WITHOUT PAY. Also note that all the harmful information that the Better Buisness Bureau had against Tax Inc was not devulged until their membership with the bureau was released.
This company operates under three different names, Tax INC. Tax Incorporated, and Tax alleviation experts. Their principle contact is David Urbas, CEO. There are complaints listed against this company with the bureau now. Just knowing that they operated under 3 different names would have been enough for me not to consider them.
Buyer beware, Companies like these may not be abreast of the laws that your state abides by and could give you very bad advice.
Andre
Detroit, Michigan
U.S.A.
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