I received a mailing from Tax Defenders after a lein was processed due to some back tax issues. These tax problems were from a previous marriage, and my spouse was deceased. I am assuming they subscribe somehow to receive notice of all leins placed by the IRS in Illinois.
After a lengthy phone conversation with one of their representatives or analyst as she was called by their firm, checking out the attorney's credentials, the accountant's credentials, and the Better Business Bureau, we decided to retain their services. There was nothing contradictory anywhere about this firm. Also, they faxed me a copy of their guarantee.
Their bottom line guarantee was your money back if not satisfied. However, the also promised to investigate and research your tax problem. They compiled all the tax information and then would make a suggestion as to the best way to handle the situation. The initial fee was $500.00. The fee was the initial payment due upon them taking your case. This would contract them to investigate your particular case, stop any collection activity (leins, levies) that may be in place and prevent any from taking place until such a time a payment arrangement could take place. They also filed for Power of Attorney for your tax issues.
Not only did I recieve this guarantee on paper, but multiple times during my initial conversation with their analyst, I was told I need their services in order to protect my income. I hade filed for social security disability and was due for those check to start. I had been injured and had been unable to work for nearly two years. I had been working with the IRS until I retained the Tax Defenders in February. There had not been any collection activity on the taxes, they were placed in a "do not collect" status until such a time a resolution could be reached.
However, each time I called the IRS I spoke with a different representative which made it difficult, to say the least, as far as continuity, and each time I had to start from the beginning. It was all so confusing. I was remarried and my present husband's tax refunds were being held and applied to my back tax bill. I did not have a clear understanding of what and how much was owed and it seemed hopeless trying to get that information. When calling the IRS, they only wanted to discuss how I could pay for it and when. Once again, explaining this to the analyst, she said another reason you need our services. We have one to one contact with someone at the IRS. Our attorney will negotiate a resolution to your problem for you.
Before we do anything, we will contact you, discuss our recommendations, and when you okay it, we will proceed with a resolution plan. So, the intial $500. Was paid, and they were to file POA for taxes, any and all collection activity and threats would be halted, all contact and correspondence was to go through the tax defenders, they would develop a resolution plan, and I was to sit back and let them handle it.
They would be contacting me again in a month or so. Their analyst reinforced the fact that I no longer needed to worry about this matter again... They would handle it all and be sure that I was protected from any legal or collection repercussions.
Over the next several months, until about September, I had little contact from them, although I did email or call on several occassions to get an update on the case. Most of those communication attempts were ignored, except I believe once I was called and told they had not reached a decision as to the best plan for me, and it often took time, so to sit tight and they would be getting in contact with me as soon as they had put that plan together. As time went by it became more and more difficult to reach "my analyst" or the attorney handling my case.
I did forget to add, that the initial agreement was when they once reached a resolution plan, which most likely she believed would be an "offer and compromise", there would be an additional fee of $1200. Plus whatever amount was agreed upon to the IRS. I inquired about the ability to pay that monthly as most likely we would be unable to come up with the entire amount all at one time. She said that would not be a problem and we would also be able to do the same with the IRS.
Okay, so now it is early October, and I received a letter from the IRS which was an intent to levy my social security disability checks. I called the Tax Defenders, and not unlike the past couple of months of unanswered emails and phone calls, it was nearly impossible to reach someone working on my case. After multiple attempts, and many promises of having the analyst return my call, I finally received a call from their (The Tax Defender's) financial person. She at that time was wanting to make arrangements to pay the $1700. For the offer and compromise they had determined would be the best resolution plan. I explained to her that I was waiting for a call from the analyst, and had been for several days, and did not know anything for sure about the "offer and compromise" or its terms, therefore I was not paying anything until I spoke with the analyst or the attorney about what exactly was going on. I also told her my concerns about failed responses and promises to return calls, and the letter I had received from the IRS regarding their intent to levy my income.
She continued to avoid putting me in contact with anyone and continued to try to make the financial arrangements. It was not until I became unreasonable and rather irritated to say the least that miracuously, she was able to put me in touch with the analyst. She half heartedly apologized that I did not know about the resolution plan and said it had been ready for some time and she had no idea why no one had contacted me. I told her about my many attempts at emails and phone calls, and even faxes to get someone to call me over the summer and fall and she again apologized.
I explained that that in itself was making me feel very insecure about them and also she had told me that the fee would be $1200 and I had that in writing. She said, well if that is what I told you, then we will honor that. I then told her about the letter from the IRS and she reassured me numerous times that it was a computer generated letter and she is sure it went out in error. However, she would have the paralegal check on it, but for me not to worry, that it would not happen, as they have my POA for taxes and they as promised, had me protected. I also explained her financial person was wanting a lump sum payment and she had told me monthly payments would be allowed. The analyst once again, said that a monthly payment schedule could be arranged. I asked that she contact me with the findings of the income levy and then to put me back with her financial department. She attempted that and told me she was busy and unable to take my call, but she would return my call.
Needless to say, I never heard from anyone again, but the first of December came and sure enough, my social security check had been levied two hundred and twelve dollars. I was beside myself and once again started attempts to contact the Tax Defenders. After numerous attempts to contact either the analyst or the attorney, while sending intermittant emails, I finally was told by a secretary that I needed to make an appointment with my attorney. She told me that was the only person I should be talking with and set up a "telephone appointment" for the following morning at 7:30 am. Once again, no call and I continued to call every couple of hours until noon, each time being told he was being delayed, but I was next on his list to call and he would be calling. At 5:30pm I received a call from their financial person once again. I was irrate to say the least and told her I was not agreeing to pay another cent until I spoke with someone. I explained the situation with the income levy, the failure of the attorney to keep our appointment, and I wanted some answers as to why the levy had occured and an explanation for the inability to speak with someone to discuss my case. Of course neither the attorney or the analyst was available at that time to speak with me. This time, she said I could make payments, but nothing would be done with my case until it was paid in full and therefore they would not stop the levy. I ranted about the levy and how it was never to have taken place per their guarantee from day one and it was the fact that the IRS had not received any response or contact over the past 8 months that it happened to begin with.
I explained that I was concerned about what if anything other than a look into our taxes had been done since the beginning and I would be a complete idiot, although I was feeling pretty foolish for falling for it all now, but I would have to be totally stupid to agree to pay them one dime at this time. I was still willing or actually wanting an explanation and she continued to refuse to put me in contact with the attorney. I told her I was furious that he blew me off that morning and she did not even attempt to apologize for that, but kept referring back to the need to pay. After it was obvious I was not giving in until I had spoken with someone, which by this time I had already decided I was done with them, she put me on hold and then came back to tell me she had spoken to my attorney, and he said it sounded as if I wasn't happy and perhaps I would like a refund. I told her you bet I do!!!
Now, they did promptly refund my money. However, that is not compensation for the deterioration of my situation over the 10 months they were handling things. I did file a complaint with the BBB and the attorney general, but of course because they refunded my initial payment as promised in their guarantee, the case was pretty much cut and dry. Their guarnatee promised alot of things beside the refund of initial payment, but no way to collect on promised not kept. I of course cannot afford to litigate this, and more than likely it would be a case of he said she said.
The attorney's response to the attorney general was sent to me and it basically said I was a very difficult person to work with and the reason the levy was allowed to happen, was that it was obvious I had no intentions of paying. While his response was not chronologically correct, nor were the events that led up to my refusal to pay discussed, he felt they had done all that they had promised and it was my failure that things evolved as they did. It still amazes me, the solicited my business through their mailing, something I had not even entertained until I received that. I had never thought about having someone intervene for me, but was frustrated by my inability to get clear cut answers when calling the IRS
You know, I have taken things back in my own hands, and have had to start the entire process of many calls to the IRS to try and dig through these past tax issues. I not only did not have the ability to pay them in a lump sum, but I was not certain I owed them or at least the amount. Very exacerbated, I spoke with an IRS rep, told him the entire story, and he was willing to spend the time looking things up and going back in my records and was able to explain exactly what was owed and a total. An amiable agreement was reached to repay those taxes and I still wonder what the issue was with the Tax Defenders.
I just feel it is very important to warn the public.
I was confused and overwhelmed by the lack of continuity and being told something different every time I called the IRS.in a moment of weakness that post card arrived promising and guaranteeing they could resolve everything for me. I fell for it and the consequences were not pleasant. I feel they prey on people in trouble, scared, confused, and challenged as far as understanding the entire tax issues and processes. I was at their mercy and they took advantage of it and then turned it around to look like it was me that was unreasonable and a dead beat not wanting to pay. After all, I owed money to the IRS, so I guess that made me irresponsible for my debts. I am telling you folks, it is quite the contrary. It was out of my desire to resolve things, that I got caught up in this scam.
Kimberly
Mattoon, Illinois
U.S.A.
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