Before I begin let me say I know I'm not a rocket scientist and have made tremendous financial blunders these past 18 months, but what kills me are the people and businesses who take advantage of us when we are down. In May 2009 I had a 401k from my previous company which we sold (I know stupid) to pay off a large amount of debt due to a house that didn't sell, relocation expense, job changes ect.
When we did my taxes the $65000 put us way over the $150,000 after dedcutions and we were told by my accountant that we owed the IRS $24,000 in taxes. Furthermore, because we were over the $150,000 we couldn't take advantage of the $8000 tax break for the first time home buyers credit, nor were we able to take just over $19,000 in depreciation from an investment property we owned. Our accountant whom we paid $395 told me he could do the paperwork to request a monthly repayment program with the IRS which was the only way I could repay this bill.
Like most everyone else on this tread, we seen Mr. Cox and Tax Master commerical and called and they conducted what I thought was the intake of information and then assured us they could reduce our $24000 bill to around $8,000 but we would have to first pay the $4,400 retainer fee. We paid the $4,400 and they did another more intensive intake and thereupon stated we do in fact owe the $24,000 and there is nothing they could do to help us but they could set up a repayment plan, the very thing my accountant offered for $395. I told them they completely ripped me off and they refused to repay me any of my $4,400.
If there is one ongoing, I would love to participate in a Class Action Lawsuit against Tax Masters.