BEWARE OF SCAMS!

There are a lot of companies today that promise to solve your tax problems. With the downturn in the economy, the proliferation of these companies has only increased. In deciding who to hire, including Patrick T. Sheehan & Associates, we strongly urge you to keep the following guidelines in mind:

• Who is the individual that is actually working on your case? There are different types of people that work on cases before the IRS. There are attorneys, CPAs, accountants, bookkeepers and enrolled agents. Worse yet, there are individuals that represent taxpayers who are not even licensed to practice before the IRS. These unscrupulous people tell you that they can help you while hoping that the government does not discover that they are not licensed to practice before the IRS. Be sure to verify the credentials of the individual or firm you hire to represent you before the IRS and make sure that they are licensed to practice before the IRS. Although there are exceptions to every rule, we strongly recommend that you stay away from unlicensed accountants, bookkeepers and/or enrolled agents. In our experience, these people deliver an inferior level of service. We also find that many out of state tax firm chains use salespeople to entice you to use their services. Once hired, they dump your case into a pool of other taxpayers who are represented by overworked, underpaid and inexperienced staff. At Patrick T. Sheehan & Associates, your case will be worked on only by a licensed attorney. You will receive the attention you deserve and a positive outcome.

• Beware of Guarantees. There are some tax resolution firms that “guarantee” a positive resolution to your case. First of all, it is unethical for an attorney or one licensed to practice before the IRS to guarantee any outcome in any case. As such, anyone that guarantees an outcome is acting in an unethical fashion and should be reported to the IRS Office of Professional Responsibility at opr@irs.gov. Although guarantees are certainly appealing, one can never guarantee the outcome of any case with the IRS. If it sounds too good to be true, it probably is.

• Beware of flat fees. There are a number of tax resolution firms that offer a flat fee no matter what services they promise to provide to you. In our experience, firms that work on a flat fee basis lose interest in your case as it becomes more difficult because they are no longer making money on your case. Would you continue to go to work every day and work just as hard at your job if you knew you were no longer being paid for your services? For this reason flat fees should be generally avoided. If it sounds too good to be true, it probably is.

• Perform an Internet search of the name of the person or firm you intend to hire. More often than not, you will learn that many of the prominent tax resolution firms have webpage after webpage of complaints related to their poor service. No matter which firm you hire, we suggest that you research that person or firm using Google, Yahoo!, Bing and other websites. If the person is a lawyer or a CPA, also research the Illinois Attorney Registration and Discipline Commission (ARDC) and the American Institute of Certified Public Accountants (AICPA). We also strongly encourage you to perform a search on Patrick T. Sheehan & Associates as part of your research. Your research will help you make the best decision as to who to hire. About half of our clients have hired somebody else prior to hiring us. Unfortunately, those taxpayers have lost many thousands of dollars and many months of time prior to finding us. Don’t make that mistake. We can resolve your case properly the first time. Call Patrick T. Sheehan & Associates and let us evaluate your case.

• Unsolicited telephone calls. Have you received a telephone call from a tax representation firm at home or at work? If yes, they are acting in an unethical fashion known as ambulance chasing. Persons that are authorized to practice before the IRS must follow the IRS Rules of Practice and Procedure. If they are CPAs or attorneys, they must follow the rules of the state in which they are licensed. CPAs, attorneys and persons authorized to practice before the IRS are strictly prohibited from contacting potential clients via telephone. If you have received a telephone call from a tax representation firm, it is proof that they are acting in an unethical fashion. You can report these individuals to the IRS Office of Professional Responsibility at opr@irs.gov. Very limited contact from tax representation firms is permitted in most jurisdictions. However, that contact is typically limited only to mail and must be clearly marked as a legal advertisement. Telephone calls from tax representation firms are unethical and are strictly prohibited. Do yourself a favor. Hang up the phone and call Patrick T. Sheehan & Associates.

• Know your rights! Although the IRS is marketing itself as kinder and gentler, sadly the opposite is true. Congress has placed an enormous amount of pressure on the IRS to collect as much money as possible because the government needs these funds to operate. Unfortunately, some IRS personnel will violate your rights in efforts to collect money from you. Watch out for these traps:

  1. The IRS employee will tell you that you do not need an attorney to represent you and that they will help you resolve your IRS problems. The IRS is not your friend. Rather, the IRS is your adversary. Some IRS personnel would prefer to work directly with inexperienced taxpayers because taxpayers do not know their rights. These IRS representatives do not like to work with experienced professionals like Patrick T. Sheehan & Associates because we will protect our clients to the greatest extent possible under the law. Although a taxpayer is free to represent himself before the IRS, doing so may jeopardize your rights. As Abraham Lincoln himself once said, “He who represents himself has a fool for a client.”

  2. Do not sign anything the IRS offers to you without first reading it and fully understanding it. In one recent case, the IRS told our taxpayers that they would not even talk to them unless they signed a series of forms, which the taxpayers did. Unfortunately, by signing those forms the taxpayers gave up many rights and negatively affected the outcome of their case before they hired us. Be sure to ask intelligent questions regarding the documents offered to you and, most importantly, read and understand all documents prior to signing them.

Patrick T. Sheehan & Associates has been in business since 1991 and zealously represents taxpayers before the IRS. We ensure that all of the rights afforded to you as a taxpayer and as an American citizen are protected to the fullest extent permitted under the law. Call us before the IRS calls you!®