United Tax Defense, Inc.

Complaints against similar offers allege that: cases are improperly handled or not negotiated as agreed,. In some cases, additional fees may be required to complete services, services are not completed during the timeframe represented or customers report difficulty contacting the company to discuss the status of their case. Generally, fees are required to be paid in advance before any services are performed. If you have tax debt with the IRS, seek the advice of an IRS enrolled agent, CPA, tax attorney, or consult with the IRS to determine if you would qualify to file for extensions or a compromise settlement. Depending on the complexity of your case, and the amount you owe, you may be able to negotiate payment arrangements to clear the debt.

Typically these companies advertise that they can settle tax related debts for less than the amount owed. Many represent that they have attorneys or certified public accountants on staff that will work on your behalf to resolve your tax issues.

In some cases, the company will calculate what they believe will be the amount you save by utilizing their services. Generally the fee they charge will be based on the projected savings, while others charge a flat rate of several thousand dollars. Our complaint experience on many of these firms indicates that they exaggerate their ability and expertise in effecting settlements and often promise much more than they can deliver. They generally attribute their inability to obtain settlements on the fact that the customer provided inaccurate or incomplete information. None of the firms guarantee that anyone will be able to obtain a settlement of their tax debt.

We urge caution. Many taxpayers have been left with the original tax debt, along with additional interest and penalties. You may also consult with the IRS to determine if you would qualify to file for an offer in compromise, or some other type of payment arrangement. To learn about the IRS’s rules for an offer in compromise, visit www.irs.gov.