Debt Relief Industry Regulation / Legislation

Tax Relief Providers Want to Avoid New FTC Telemarketing Sales Rules

Here is a press release from Tax Resolution Services. With two days left before the new telemarketing sales rules go into force it seems very last minute to make the pitch, but nice try.

Anyone want to try to help clarify it for them? Post your clarification in the comments below.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.


Press Release

Tax Relief Providers Seek Clarification from New FTC Debt Settlement Regulations
New FTC provisions to the Telemarketing Sales Rule (TSR) contradict federal tax law.

Encino, CA (Vocus) October 25, 2010

Just weeks after the FTC’s orders to shut down American Tax Relief for cheating taxpayers out of $60 million, the Federal Trade Commission (FTC) is slated to enact the “debt relief service” amendments to the Telemarketing Sales Rule (TSR) that the FTC now says applies to the tax relief industry as well to reign in the deceptive practices of debt settlement, debt resolution and credit counseling agencies.

“There is no doubt that many providers of tax resolution services make unreasonable claims and are guilty of consumer abuse,” said Lawrence Lawler, National Director of the American Society of Tax Problem Solvers (ASTPS). “However, IRS and other agencies have the power under existing regulations to eliminate the ‘bad apples’ without damaging good practitioners in the process.”

The FTC TSR amendment references tax debt as “unsecured.” This contradicts federal tax law, which states that there are simply no “unsecured” federal tax debts. All federal tax debt is secured as are most state tax debts.

“Since all tax debts owed the government are secured from the moment the tax is assessed, tax relief providers by definition should be exempt from the TSR,” said Michael Rozbruch, CEO of Tax Resolution Services, Co., an Inc. 5000 company. “We are grateful that the FTC has been active in bringing enforcement actions to stamp out unethical tax debt relief firms. However we need clarification from the FTC about the application of the TSR to tax debt relief companies so we can continue to serve taxpayers concerned about IRS audits and their collection tactics.”

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Rozbruch adds that resolving tax debt can be a complicated and highly technical process, especially if taxpayers are under audit and/or owe $25,000 or more to the IRS. Consumers should be weary of easy IRS solutions or software substitutes offered on the Internet, in lieu of professional representation from a practicing ASTPS member or practitioner with the Certified Tax Resolution Specialist credential who is experienced in negotiating with the IRS.

Tax Resolution Services, Co., is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS. Our tax attorneys, CPAs, and tax relief professionals have successfully resolved thousands of cases since 1998 and are committed to making sure our clients’ experiences exceed their expectations. For more information or to receive a free tax relief consultation, visit TaxResolution.com or call 888-851-5894.
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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

8 Comments

  • The FTC shut down American Tax Relief using existing debtor-protection rules. These new rules are nothing but a reactionary attempt by the FTC to appear that they are doing something. Mr. Lawler is 100% right. ALL tax debts are “secured” the moment they are assessed. If the FTC meant to treat all tax rep companies as a scourge, they would never have excluded tax debts by using the word “secured.” If they didn’t know that tax debts are automatically secured, perhaps the folks at the FTC ought to learn a little bit about the industries they hope to regulate.

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