photo © 2008 woodley wonderworks | more info (via: Wylio)TaxMasters, a tax relief service provider has come out in support of the new FTC telemarketing sales rules and has said they will follow them, even though the FTC has put a temporary hold on enforcement of those rules for now.
Though the new Telemarketing Sales Rule is currently not being applied to secured IRS tax debt, it only makes sense that the tax debt industry should use the FTC rule for guidance and adopt best practices that protect consumers who find themselves in financial straits. TaxMasters enacted a new business model on October 25, 2010 that is in line with the Telemarketing Sales Rule. The new model offers consumers the certainty of regaining compliance with the IRS first, putting them back on the right side of the law. After this initial engagement is complete, the client is free to attempt the settlement process without help or to take the tax returns and other documents prepared by TaxMasters to another firm for assistance with the tax debt negotiation. When a client chooses to engage TaxMasters for the tax settlement, the Company takes payment only after the IRS accepts a tax settlement plan.
In a move that this reporter has covered before, debt settlement companies have been wandering into the waters of the tax relief service providers. TaxMasters seems to want debt relief opportunists to stay away from their part of the world. And rightfully so. In a logical effort to avoid further regulation it seems wise that TaxMasters would want to discourage debt settlement entities already under watch from promoting tax relief services.
“What we are seeing now is some of the unethical debt settlement firms switching gears to offer tax debt relief, even though they have none of the skills, certifications or experience they need to perform the necessary tax services,” said Alex Clamon, Vice President of Sales for TaxMasters. “Consumers need to make sure whoever they hire for tax help stresses compliance first and repayment second. Anyone who tells you they can settle your tax debt without knowing you are in compliance and you have filed all tax returns might as well be offering you ocean-front property in Amarillo.”
For more on tax relief services you can watch my recent interview with Jim Buttonow, below.
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