American Federal Tax Solutions

Review: [redacted]I became a client of American Federal Tax in September, 2008. I retained them to represent me to resolve a tax balance with the IRS, with whom I had previously arranged an installment agreement, but due to losing my job in April, was no longer in effect. I was still unemployed at the time I retained American Federal Tax Solutions, so the IRS was not currently doing any collection activities against me, but I wanted representation so that when I returned to work, I would not be subject to IRS collection procedures. I was promised by Frank Moulton at the company that I would be represented until a resolution of my tax debt was worked out with the IRS, and offered several possible outcomes, including another installment agreement or an offer in compromise (for which I did not qualify).

I returned to work in October, 2009. However, other than a threatening letter a few times a year, I did not experience any serious collection activities from the IRS involving wage garnishment or bank account levies until April, 2014, when they notified my current employer, asking for income information about me so that they could arrange a wage garnishment. When I was notified of this by my employer, I contacted [redacted] at American Federal Tax Solutions to let him know that the time had come for us to work out the promised resolution with the IRS. However, [redacted] was expecting me to pay for a new client agreement, and told me that my previous agreement no longer applied since it had been 6 years. So, I was left to represent myself or hire someone else. He was very rude and impertinent, and finally hung up on me when I was insistent that my prior contract with the company had not been fulfilled.

I paid American Federal Tax Solutions $2,650 in 2008, with the understanding and contract stating that I would receive a final resolution of my tax debt with the IRS. I never received this, and I am currently trying to work out an installment agreement resolution with the IRS on my own.Desired Settlement: I would like a refund of the $2,650 I paid to American Federal Tax Solutions, as I received no benefit from contracting their services. Also, an apology from [redacted] for his impertinent attitude with me on the phone would be appreciated.

Business

Response:

To Whom It May Concern,

[redacted] retained our services in September 2008 to help him with his IRS tax situation. At that time, we explained his options and he chose Currently Non-Collectible...which he did not mention in his complaint. This is an option, provided by the IRS, as well as Installment Agreement or Offer in Compromise, but one which [redacted] did qualify for, according to the IRS.

We laid out the options available and [redacted] chose Currently Non-Collectible, which means the client is not making enough income to currently repay the IRS the tax debt owed to them. If the client's circumstances change, they are supposed to contact the IRS and make payments at that time.

[redacted] concluded his business with us at that time. We explained that our case was concluded, when he chose Currently Non-Collectible and that it is important to file all future IRS tax returns on time and pay any new taxes due on time, or Currently Non-Collectible status can be revoked. It would also be important to deal with any future IRS matters in a timely matter, such as going back to work, a change in his income, or any change in his current status.

We do not continue representing any of our clients, once they have chosen a tax relief option and we have completed the case. If new circumstances arise, it would be an entirely new case, since the IRS will need a new Power of Attorney filed, all new information concerning the client, and the IRS will consider it as an entirely new representation case.

Five years later, [redacted] contacts our company, to say he's been working for several years, ignored numerous IRS letters, is now about to have his wages garnished...and expects us to represent him for free. We explained that we had concluded the case approximately five years ago and this would be an entirely new case. Although [redacted] admitted we had placed him in Currently Non-Collectible status, which is what he wanted at the time, a few minutes later, he got very upset and yelled on the phone that we hadn't done anything and that he demanded we negotiate with the IRS again for him and this time he wanted an Installment Agreement.

As I have already said, we do not work on cases indefinitely. [redacted] could easily have responded to any of the numerous IRS letters he received, but chose not to do so. We are no 'on retainer' for years, on the off chance that our former clients will have more problems with the IRS. We wish [redacted] the best of luck in the future and advise him to not ignore any future IRS correspondence.

Sincerely,

[redacted], President

American Federal Tax Solutions

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received, your complaint will be closed Administratively Resolved]

Revdex.com,

I have reviewed the response made by the business in reference to complaint ID [redacted] and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.

Contrary to [redacted]'s statements, I did not choose an option of

"Currently Non-Collectible". It was not even in the list of possible

outcomes, it was never even offered to me as a choice, and I was in an

non-collectible position with the IRS anyway due to my unemployed

status. I would not have paid the high fee I paid to American Federal

Tax Solutions for a temporary fix that would just last until I was

employed again. It would be a ludicrous thing to do, especially since I

was aggressively seeking employment at the time. I emphasized when I

talked with [redacted] at the time that I was seeking a permanent

resolution to my IRS tax issues, and he assured me that AFTS would

achieve that end. I did not respond to the numerous letters I received

from the IRS the past few years because I was wanting to postpone my

resolution with them as long as possible prior to working out an

installment agreement. (As a result, some of the tax liability I now

have will expire soon.) I was always intending on contacting AFTS

whenever the time came for serious collection activity to have them

fulfill their obligation to me and represent me in a permanent

resolution of my tax issues. However, I was not afforded any assistance

without additional payment, so the initial contract I had with them was

never fulfilled, and I believe I am entitled to a refund of the money I

paid them.

Regards,

Business

Response:

To Whom It

May Concern: