Yesterday, I met with the head of a local accounting firm. He’s been a strong supporter of TaxLifeboat for over a year and in this conversation he was even more adamant about the need for our services. The IRS is under pressure to raise more taxes and close the tax gap so they’re adding 26,000 new positions over the next 12 months. As a response, the tax mills are stepping up their predatory practices.
For example, he told the story of a client who the IRS said owed $60,000. The accountant advised him that this could be negotiated down substantially by providing the proper documentation. The taxpayer, however, heard the radio announcement of a prominent “tax mill” and borrowed $35,000 to pay this firm their retainer. Now he’s paying interest on the $35,000, accruing interest on his tax debt, the tax attorney has yet to fix the problem, and the whole matter could have been responsibly handled for much less than $35,000.
As the accountant concluded, that’s exactly why TaxLifeboat is needed so badly.