Reputable Tax Resolution Professionals Defend Industry Under Scrutiny

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Tax resolution industry leader Michael Rozbruch of Tax Resolution Services, Co. recently quoted in article defending the ethical players in the tax resolution industry.

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If we paint the entire industry with a broad brush everybody’s out of business, and the one that would suffer the most is the consumer.

In a recent article written by Tax Analysts Document Service, Tax Debt Representation Industry Continues to Act in the Shadows, Michael Rozbruch, founder and CEO of Tax Resolution Services, Co. a pioneer in the tax problem resolution industry, addressed his thought leadership about the growing criticism of tax negotiation-resolution firms. The article starts off by talking about the deceptive advertising and business practices that have not only affected vulnerable consumers but also damages the reputation of the tax debt representation industry and set the Federal Trade Commission (FTC) out to regulate it.

Rozbruch was quoted later in the article to educate readers that, “All tax resolution firms are not created equal – the unscrupulous players have given the ethical firms a bad name. A few of the unethical national tax debt representation providers have tarnished the reputation of the entire industry, which my company works to offset everyday as we serve consumers ethically.”

As a result of the abusive practices happening, Rozbruch founded the Tax Problem Resolution Services Coalition (TPRSC) – an industry trade group to set high professional standards and business practices after the FTC proposed its rule for debt relief providers.

Rozbruch adds, “We started TPRSC in part to defend the industry's reputation, but also because we feared enforcing a rule prohibiting credible providers from collecting upfront fees would be disastrous for the “good” firms.”

Last October (2010), the FTC wanted to begin enforcing a rule that, among other provisions, prohibited tax problem resolution firms from charging an upfront fee for their services. TPRSC members believed enforcing the FTC legislation as it stood would be disastrous for honest tax resolution specialists and would put many out of business. The annual tax debt representation market is thought to be between $500 million to $1 billion industry according to conservative estimates given by Rozbruch.

"If we paint the entire industry with a broad brush everybody’s out of business, and the one that would suffer the most is the consumer” says Rozbruch.

While the expert tax resolution specialists of the TPRSC are in favor of regulation, they defend the practice of being paid for services rendered. In an attempt to self-regulate, TPRSC members have proposed both federal and state legislation for appropriate regulation suggesting that tax problem resolution specialists be allowed to continue assisting consumers with their IRS tax problems and provide this much needed service.

The tax debt representation industry has been essentially unregulated since its inception in 1998 which Rozbruch dated to the enactment of the Internal Revenue Service Restructuring and Reform Act of 1998. The act allowed taxpayers a greater ability, and “rights”, to argue cases before the IRS, previously, not available to them. He states, "Now all of a sudden, consumers could hire people who were trained and educated and have experience with ‘tax debt resolution’ to represent them.”

The Better Business Bureau (BBB) is another organization following this industry closely and is the tracking resource for feedback from consumers and businesses alike. Rozbruch believes because of the BBB and the internet, consumers can take a more active role in researching tax resolution specialist-tax negotiation firms before hiring them. “Consumers start the complaint process against questionable companies with the BBB, so it’s a great place to begin your research”, says Rozbruch. “Check the grade rating, how long the company has been accredited by the BBB and how any complaints are handled by the company.” Armed with information, consumers may be more likely to sort the good firms from the bad and avert the nightmare of bad business practices altogether.

Tax Resolution Services, Co.®, the nation's leading experts in tax negotiation and mediation®, is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS. For more information or to receive a FREE tax relief consultation, visit TaxResolution.com or call 888-851-5894.

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Debbie Edwards

Tax Relief Consultation
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