First, I agree that taxpayers can resolve many of their own problems with the IRS without assistance. According to IRS statistics, one in fifteen taxpayers has some form of tax problem. Many are small easily resolved issues and require no professional assistance. The average taxpayer with a small problem does not have his bank account seized or his wages levied. They can contact the IRS and work out their problem rather easily. However, others have struggled with a tax problem for years to no avail; they should seek qualified professional help.

Many taxpayers who have never had a problem with the IRS and who faithfully pay their taxes feel those who benefit from programs like the Offer in Compromise are deadbeats out to beat the system. Programs like the Offer in Compromise exist because they are necessary, not to benefit the scammers who abuse them.

I have represented taxpayers for thirty-seven years and have learned that most tax troubles are the result of some larger issue. The consequences of business failure, divorce, illness, loss of job, college tuition, and countless other causes often include tax problems that the individual does not know how to resolve.

It’s important to remember that the job of the IRS is to collect tax. It is not their job to find the best solution to a taxpayer’s problem. The Office of the Taxpayer Advocate will assist a taxpayer when the IRS system is not functioning properly, but they do not assist the taxpayer to find the best solution to a tax challenge.

Sadly, this industry is replete with the scammers your article describes. Yet, there are qualified taxpayer representative who practice in this area and provide valuable services. As the National Director of the American Society of Tax Problem Solvers (ASTPS), I feel you have only looked at the dark side of our profession. ASTPS is a nationwide non-profit professional association dedicated to member education and enforcing our Code of Ethics. We have a Disciplinary Board to hear consumer complaints and deny membership to any person or firm who does not subscribe to our mission. Our members may avail themselves of a certification program that involves experience, education, and a difficult examination. Once they become a Certified Tax Resolution Specialist (CTRS), they must remain current through continuing professional education courses.

Your article also stated, “Paying someone who is not a tax attorney to negotiate an IRS settlement is unnecessary.” While tax attorneys are excellent representatives, they are not the only qualified representative. Certified Public Accountants (CPAs) and Enrolled Agents (EAs), as well as attorneys are licensed to represent taxpayers and practice before the Internal Revenue Service. Our membership is composed of all three disciplines.

On the subject of the Offer in Compromise (OIC) program, you wrote that the taxpayer can, “…ask them to let you clear a tax debt for less than the amount due.” This is misleading and unfair to your readers as the OIC requires considerable paperwork and is generally beyond the tax expertise of most individuals to implement effectively. A qualified professional will apprised the taxpayer of his rights and opportunities to best resolve the tax issue at hand.

You wrote that, “…the offer-in-compromise is not accepted very often.” This is accurate, but looking a bit deeper reveals that many offers are filed by the charlatans that your article targets. Because of the extensive and misleading mass marketing they do these large less-than-ethical companies file numerous offers that they should know IRS would not accept. The sheer volume of these bad offers skews the acceptance rate dramatically. Honest practitioners have a much higher rate of acceptance because they do not file substandard offers. They will find proper solutions for their client.

Qualified practitioners will often provide free consultations to a taxpayer who feels they need assistance dealing with the Internal Revenue Service. During this meeting, they will discuss the real likelihood of an Offer in Compromise being accepted, the other programs that may be appropriate, and the fees the taxpayer can expect depending on the services engaged.

Troubled taxpayers searching for help should look for the ASTPS membership; we are like the Good Housekeeping Seal of Approval in taxpayer representation. Our website is ASTPS.org and we are filed as a non-profit professional association in the State of New York and with the IRS. Inquiries by email are welcomed at info@astps.org.

About the Author: Lawrence M. Lawler is the National Director of the American Society of Tax Problem Solvers. He is a Certified Public Accountant, a Certified Tax Resolution Specialist, an Enrolled Agent, a National Tax Practice Institute Fellow, and managing partner of Lawler & Witkowski, CPAs, PC. He has been representing taxpayers for thirty-seven years. He is a frequent lecturer, author of numerous professional articles, and creator of hundreds of professional seminars.