TV SCAMS
TaxMasters, headquartered in Houston, is under investigation by the Florida Attorney General's Office, said spokeswoman Jenn Meale.
The consumers state they paid TaxMasters through their credit cards or checking accounts, but have received no services and cannot get a refund. Many say they are now deeper in debt.
In the ads, which run on cable television, Patrick Cox, TaxMasters' red-bearded CEO, assures viewers that his company's staff of former IRS agents and tax professionals "have helped many good people just like you."
Nationally, the Better Business Bureau has received 1,037 complaints nationally against TaxMasters in the past three years and has given it an "F" rating, the worst rating possible.
"That particular ad is on all the time. It looks credible. It is well done and looks first class. People think if it is on TV, it must be credible. The senior population, and it is a huge number that is moving forward, will be most vulnerable," said Michael Galvin, vice president/communications, Better Business Bureau, Southeast Florida and the Caribbean, West Palm Beach.
Experts advise staying away from tax help firms that ask for large fees in advance and use high-pressure sales tactics and claim they can get rid of your tax debt.
The IRS says only three types of professionals are authorized to represent taxpayers before them - attorneys, certified public accountants and enrolled agents, all whom must pass an IRS test and pass refresher courses.
IRS EASES RULES FOR INSTALLMENT PAYMENTS
The IRS recently relaxed its rules for payment of smaller tax liabilities. The revised procedures now allow taxpayers up to 72 months to pay their tax obligations. The new procedures also increase the maximum amount subject to the relaxed streamlined agreements from $25,000 to $50,000.
You may request a monthly installment plan by submitting Form 9465-FS to if your liability is greater than $25,000 but not more than $50,000. Though Form 9465-FS is meant to be used by taxpayers with liabilities greater than $25,000 but not more than $50,000, it can be used by all taxpayers to request an installment agreement. Generally, you can have up to 72 months to pay.
If you use 9465-FS you must file it on paper mailing it to the address shown below for your respective address. . If you have already filed your return and you are sending in Form 9465-FS on its own, mail it to the address shown below for the type of return filed.
President Obama wants to boost IRS budget by $950 million
Obama's fiscal year 2013 budget proposal for IRS totals $12.8 billion, approximately $950 million above the level enacted for the current year. According to budget documents, the proposal would ensure “robust IRS tax enforcement and compliance initiatives that can return $5 for each dollar spent.” The proposal includes $403 million for new enforcement activities. Approximately $200 million would be used to bolster examination and collection programs.
