• Report: #1044415
Complaint Review:


  • Submitted: Thu, April 18, 2013
  • Updated: Thu, April 18, 2013

  • Reported By: benburned — Yourtown New York
Internet United States of America

StopIRSdebt.com Extreme overcharging, failure to perform at all, extreme non-cooperation even after numerous attempts for a very simple request for a form Los Angeles, Internet

*Consumer Comment: Seriously?

*Consumer Comment: I had similar experience with Stop IRS Debt

*Author of original report: Liars & thieves

*UPDATE Employee: Company Rebuttal

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I made the mistake of panicking after another so-called professional CPA gave me the wrong tax rate, then strung me along until the last minute, under the guise of having a heavy workload, when he called with the true tax rate. The difference was approximately $45,000 and having acted on erroneous information, I no longer had the cash to pay it.
I'm in my 50's & this was the first time I ever filed an extension, much less paid late, so in a panic I called StopIRSdebt as their ads show an A+ rating with the BBB. StopIRSdebt is a legal firm. If you look on the BBB website, they do not handle complaints involving legal firms, so the TV ad is a deception.

I received a letter from the IRS asking for an explanation as to why I shouldn't be penalized & have interest added to the unpaid balance. I called StopIRSdebt (who I'll refer to as S.I.D. for brevity) & faxed them the letter. I was told not to worry, they were working on the situation. I was also told the $4000 I paid them didn't include the state taxes which also needed to be dealt with & would cost another $2000.

About 3 weeks after paying them I received a call from them saying they'd negotiated the taxes & I'd only have to pay less than $500 a month for 24 months. At first I thought Great! These guys are fantastic! Then I compared the total of the payments to the tax bills & saw the total matched the state tax almost to the penny. My wife called to verify & sure enough we'd been duped. The payments were for state taxes only & nothing had been done about the IRS.
I asked about the hardship explanation & was again told not to worry, they were working on it. As time passed I began receiving threatening notices from the IRS of adverse action they would take if the amount owed wasn't paid immediately. My wife filed for bankruptcy due to other factors as well as the tax debts, something S.I.D. was told would happen from the very first call.

Come to find out, the tax debts were first in line to be paid with the payments my wife now makes to the bankruptcy trustee. In other words S.I.D.'s services were not needed from the start & they had swindled us out of $6000 & had tried to get another $2000 to file the 2012 taxes, which H&R Block did for $500. The hardship form had still not been done, & the deadline given was fast approaching.
After numerous requests for this form, I finally gave up on S.I.D., went to the IRS site & researched until I found the appropriate form, form 843, which H&R Block filled out free of charge & I added my explanation of what all had happened to delay payment. All I needed at this point was a name and phone number of the person S.I.D. had been working with at the IRS to ensure the form reached the proper person. Once again, after numerous requests were made, no such information was ever forthcoming.

After awhile it started to become clear S.I.D. had not done ANYTHING to work with the IRS on my behalf. They have been fired & needed told this 3 times. A complaint has been filed with the BBB along with a request the BBB demand S.I.D. stop deceptive use of the BBB A+ rating used in their ads. My next step will be to work with my wife's bankruptcy trustee & judge to get the funds returned so they can go towards her creditors which have earned it. Then a report will be filed with the California Bar Association in hopes of getting the license of these shysters revoked due to deceptive & highly unethical practices. 

This report was posted on Ripoff Report on 04/18/2013 04:23 PM and is a permanent record located here: http://www.ripoffreport.com/reports/stopirsdebtcom/internet/stopirsdebtcom-extreme-overcharging-failure-to-perform-at-all-extreme-non-cooperation-1044415. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Consumer Comment


AUTHOR: higherexpectations - ()

You say ''You also had sufficient equity in your retirement account that would have allowed you to pay the IRS debt in full.''

 Well didn't you know that before you took on this person and represented them? Did you warn them their retirement could be in jeopardy? People need to LIVE on that, so saying this is rude, uncaring, and unprofessional. Stop IRS Debt has enough bad reviews about them. I wouldn't touch them with a 10 foot pole. And YOU coming in here and blaming the PERSON is ridiculous. People come to you because they don't understand the unbelievably complicated laws and you are supposed to guide them. So, DID you warn them their retirement could be taken? 

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#2 Consumer Comment

I had similar experience with Stop IRS Debt

AUTHOR: Lois - ()

I have filed complaints with FTC and CA AG's office about this company as follows:


Hello, my name is Lois M....
I'm not an member of US Armed Forces or have a foreign address or shareholder etc.
I contacted Stop IRS Debt by finding their ad on the internet on 10/13/14. I explained my tax issue which primarily is gross receipts tax, penalty and interest of about $21,000 to the state of NM. I owe the IRS about $900. Stop IRS assured me that they could work out a reduction in the GR tax and set up a payment plan.
The person I spoke to, Bill Davis, really worked on my fears by stating numerous times that it was fortunate that I contacted them when I did since "tax agents could be at my doorstep as soon as the next day if I didn't give them POA" he stated that the flat fee in total would be $4600. I didn't see and sign the contract until after I paid, because at the time I was caring/staying with my parents ages 94, 96 and I couldn't get to my office until later that day. Bill was pressuring me to get it done that day. I feel really stupid now that I didn't research further because I know now these predatory tactics are being used all over.
Less than one week later I received notice from Bill saying that I had "severe compliance issues" he said that my case was more complicated and that they would need more money in order to give me the protection I would need. He started off by saying that a case like mine, if handled by a tax attorney would cost about $17,000 but they would give me a deal by charging me only $7000 more. After being put on hold several times supposedly "working with his manager" he got it down to $5000. I had more fear and anxiety because if I didn't pay, he made it seem as if I'd lose what I already paid. I started feeling like I was dealing with a used car salesman. Later I thought I should have just made that payment to the State.
Total amount they got from me was $9600. I paid the $5000 by maxing out two credit cards and some from a secured line of credit. I have a statement from my bank that shows they took the money out of my checking account instead of the account I authorized. Had I not caught that I would have had multiple bounced checks. After I had time to check the facts I found that the state of NM will not under any circumstances reduce GR tax liability as Bill promised could be done.
After I received a seizure notice from the state around the 1st of December I contacted Stop IRS and said they were not doing the job they promised and I wanted my money back. I was contacted by Jacob Miller the Vice President of the company who repeatedly said they could help and that the NM Tax agent was lying to me, that the state was deceiving me and just trying to scare me. I stated that I wanted a refund which he refused at that time. He said that they had put in hours and hours of work on my case.
After multiple email and phone calls he offered me $2300 out of my $9600 and I would have to sign a release. I refused and I was able to reverse $3230 that had been put on my credit cards. I will lose that if I can't prove fraud. I have filed a complaint with FTC and now your office.
I don't think they deserve a penny but I would be willing to let them keep $1000 and accept a refund of the balance. If they are able to chargeback on my credit cards the total of $3230 then I would expect that to be returned. Bottom line I would expect a total of $8600 to be returned.
I hope that this practice can be stopped and other consumers can avoid this deceitful predatory company.
Thank you for your help.
Lois M....
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#3 Author of original report

Liars & thieves

AUTHOR: Rob - ()

I really like the way the company's response starts out, "After a thorough review of your file..." Let's see just how thorough this was, shall we? Yes, you were hired in a panic on 10/03/2012, & I assume you called them that night to tell them you were hired. At least you got one miniscule detail right. During that phone call, (and anyone reading this, never, ever hire a lawyer over the phone, I highly recommend using a miniturized video camera, such as one that appears to be a pen, when dealing with any "professional") and during subsequent calls, you were told the tax problem we had was for 2011 & and we had just gotten them in hand, so they had not yet been filed due to delays from the CPA who did the taxes.

So, problem 1, you were looking for something not yet filed due to inattention during a phone call, a problem that got so obvious I had to insist on written communications. Problem 2, I've never had an attorney communicate with an adverse party on my behalf & not document such to me. Unprofessional at best. You say you contacted the IRS on my behalf at least 6 more times, (I find the words "at least" interesting), yet no substance of, or results from, these supposed communications were ever forthcoming to me, even to this day. Problem 3, You say you were working to resolve the taxes assessed 01/22/2013, yet you were never hired for this.

You were hired to resolve the assessment of the 2011 taxes only. The reason you were not hired for our 2012 taxes is we were no longer in panic mode & found out a very highly reputable company would do them for 75% less than the thousands you quote. Problem 4, You called me, again nothing written, to tell me my tax problems were resolved & I'd only have to pay $421 a month for 2 years. Yes, I was very happy & thought that was great, until I started comparing amounts & saw how close the total of payments were to the full amount of AZ taxes only. Sure enough, what had been sold to us as a full resolution, (AZ & federal), was AZ only. Problem 5, Yes, we have equity in our home.

Had the incompetent CPA (as opposed to the incompetent lawyer) told us the truth about the tax rate we'd have when he was hired in the spring of 2012, we'd have bought a less expensive home & paid the taxes. By the time we found out the truth of the tax rate, we'd already bought the home. This erroneous CPA advice was acted on BEFORE you were ever called, so the lie in your last email is now exposed, as we didn't "prefer" to act on his advice. Instead we called you & it's very clear how that has turned out. Problem 6, I do NOT have suffieceint equity in a retirement account, not anywhere close.

My wife may have had, but as you were told during the very first call on 10/03/2012, she had to take bankruptcy due to being upside down financially on a house in AZ that was also in need of extensive exterior repair. A loan denial letter was never asked for, so that's 2 lies for the same problem. Problem 7, The IRS didn't inform you of my wifes bankruptcy being filed. I did 2 weeks afterward. This was in addition to telling you during the first phone call the bankruptcy had to happen because of the house in AZ. Problem 8, Despite begging numerous times as to our status & a name and contact number at the IRS, as well of copies of any and all communications you've had with them on our behalf, none was ever forthcoming. Problem 9, This one is all yours. I'll repeat, I don't get a single penny's advantage coming after you.

Any monies gained simply go to the firms that have earned it, which your's has not. I gave you a chance to recognize your mistakes, but the more I deal with you the more I realize they aren't mistakes. You deliberately time commercials for when people are panicing so you can take advantage of them. You even used a BBB A+ rating in your commercials, which a quick check on the BBB site reveals they have nothing to do with lawyers. Contacting the BBB & writing this ripoff report was simply meant to make you realize I'm not playing about contacting the CA Bar Association. So now instead of telling your customers it's tax week, & though they hired you 6 months prior, you're too busy ripping off more innocents, you can explain yourselves to the CA and/or the national bar association. 

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#4 UPDATE Employee

Company Rebuttal

AUTHOR: Andrew - ()

We have reviewed the complaint listed here, and although it has been posted anonymously, we believe it belongs to Mr. A****. Please see the summary below:

After a thorough review of your file with our firm, it appears we have properly provided services to you in handling your tax situation with the IRS and with the state, according to the terms of our retainer agreement with you.

You retained our firm on October 3, 2012 to represent you regarding your account with the IRS.  We called the IRS on October 3, 2012.  However, at that time the IRS was not showing that any balances were due on your account and that all federal returns were current and had been filed. 

On October 10, 2012 we called the IRS again on your behalf and requested account transcripts.  Since October 10, 2012, we contacted the IRS at least six additional times on January 22, 2013, February 11, 2013, March 4, 2013, March 12, 2013, March 22, 2013 and April 5, 2013 in an effort to resolve your outstanding balance with regard to the IRS that was assessed on or around January 22, 2013.

On or around October 26, 2012 you also retained our firm to represent you concerning your tax liability with the state of Arizona.  We contacted the state of Arizona on November 2, 2012 and then again on November 6, 2012, November 8, 2012, November 28, 2012, January 3, 2013, January 30, 2013, February 7, 2013, and February 15, 2013.  We finally managed to set up an installment agreement repayment plan for you with the state on January 30, 2013.  When we notified you via email that we had secured an installment agreement repayment plan at $421 per month, you told us that that resolution was “great” and you seemed pleased that we had accomplished this resolution for you with the state.

We also attempted to resolve your outstanding debt with the Internal Revenue Service.  We prepared financials for the IRS and provided that information to the IRS for consideration of a hardship status with that agency.  The IRS rejected your hardship status request because you had a significant amount of equity in your real property that far exceeded your federal tax debt.  You also had sufficient equity in your retirement account that would have allowed you to pay the IRS debt in full.  The IRS indicated that you needed to first try to secure funds from your home or your retirement account before seeking hardship status.  You never provided this firm with a copy of a loan denial letter as repeatedly requested by us that you do so. 

Moreover, when we contacted the IRS on your behalf on March 22, 2013, the IRS informed us that your wife had filed bankruptcy on February 28, 2013. 

You never advised us that your wife had filed bankruptcy.  Since your wife filed bankruptcy, the IRS collection efforts were automatically stayed as to her concerning further collection activity at this time by the IRS.  The IRS also indicated, however, that it would continue to pursue collection action against you once it was confirmed that you did not file bankruptcy along with your spouse and that you would continue to be liable for the federal tax debt. 

You advised us that your accountant advised you otherwise concerning the IRS and the bankruptcy.  As such, we resolved to allow you to rely on your accountant’s erroneous advice, even though your accountant should not be giving you legal advice concerning the federal bankruptcy rules and how they apply in tax situations.

You have since told us that you no longer wish to retain our services in resolving your tax debt with the Internal Revenue Service.  As such, we will be closing your file with our firm, effective immediately.

Since we have completed services on your file well in excess of the retainer funds you have paid to us, we will not be refunding any monies to you for the time spent and services completed on your state and federal accounts.  It was your choice to have your wife file bankruptcy and to rely on the legal and tax advice of your accountant and your choice to voluntarily terminate our services before we could develop a final resolution on your account with the IRS.  We have secured a final resolution of your debt with the state. 

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