Photo by Jilly Wendell

On Your Side No-Account Accountants By Ron Burley, May & June 2009 Going after a tax consultant who dropped the ball

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Companies that help people in distress must hew to the highest standards. This is true whether it's a hospital or...a tax consultant. That's why I was shocked by a letter from Mary Burkett of Oklahoma City. Mary and her husband, Larry, had fallen behind on a payment agreement with the IRS and wanted help renegotiating their $40,000 debt. They'd seen TV ads from a Houston company, TaxMasters, in which founder Patrick Cox promises to "get between you and the IRS" to "solve your tax problems." Mary called TaxMasters and—assured she'd get quick help—paid $4,500 by credit card for services to be rendered. But by the time TaxMasters got rolling, two months had passed; the IRS had garnished Larry's Social Security check and put a lien on the Burketts' home. A lot of us might have sued the company. Mary just wanted a refund—and was refused.

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I got nowhere with customer service—no callback, two hang-ups. I faxed them. No response. Then I wrote about the Burketts on my AARP blog. That brought forth TaxMasters media director Lee French with the promise of a full refund.

End of story? Not quite. Days later company attorney Michael Wallace informed me the Burketts would get only $2,250, because in an October letter Mary asked for "at least half my money back." She also wrote: "This is a nightmare paying $4,500 for nothing." After a week of back-and-forth, French reinstated the full refund.

All Mary really wanted was for Patrick Cox to keep his promise.

Recovered by On Your Side: $4,500

Ron Burley is the author of Unscrewed: The Consumer’s Guide to Getting What You Paid For (Ten Speed Press, 2006). You can read his journal on AARP.org, where there's also a new On Your Side column every two weeks.

If the IRS Calls

Respond Ignoring a notice invites penalties and interest, liens, and garnished wages.

Consider a pro If you need help, stay local. Find a CPA, attorney, or Enrolled Agent to represent you.

Get results Pay for services only after they have been performed. Tax consulting often costs $75 to $250 an hour.

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