JK Harris Intent to Commit Fraud ripoff Charleston South Carolina

Hello,

My name is Amanda. I recently had some problems with a tax resolution company, a I'm sure there are a lot of other people in my situation and would like to notify people before they attempt to do handle it.


In November of 2005, I received a letter from the IRS that I had taxes owed from year ending 2003. In February, 2006, I found JK Harri, a Tax Resolution Company. I contacted them and went in to speak with an agent. While speaking with their "Sales" Agent, we came to a resolution amount of $2,400, a discount from the amount of money owed at that time to the IRS.

I was made to believe that I was paying JK Harris who would settle the account with the IRS. So, I put down a $500 deposit and the remainder was to be paid in smaller increments until paid in full. Because of the financing, I was also paying interest along with a $10 processing charge for each month that payment was made. After a few more months, I received another letter from the IRS, adding in additional fees and penalties. I contacted my new contact with JK Harris.

She informed me that the $2400 I paid to JK Harris was just their fees to handle the account. They still would have to find a resolution between myself and the IRS that I would have to pay. She said it would probably only be $50 or $100 additional payment on my end. As well, she told me that I would still receive letters from the IRS due to formality, however, she would send over the letter that I signed authorizing JK Harris to hold Power of Attorney over my account. Lastly, she said to disregard the letters that come in from the IRS, as JK Harris will have made them aware that we are working on a resolution.

Some time had passed, and Victoria contacted me to confirm incoming wages vs outgoing payments on a monthly basis to help find a smaller amount of resolution. I had sent over copies of all pay stubs, bill stubs, etc., and was told that she would continue working on the rest.

A few more months had passed, and she contacted me again, stating the IRS requires current information and unfortunately, too much time had passed so we needed to update all of the bills and pay, etc. So, once again, I sent over current Pay stubs, bill stubs, etc. In January, 2007, I received paperwork from JK Harris requiring a signature for suggested resolution. The amount they were suggesting was $599 (far from the $50/$100 that she told me she was sure we would settle at). However, to get the situation completed, I decided to sign.

In Feb, 2007, my husband and I filed our taxes for 2006 and were to get back a return, which was going to be used to pay our property taxes for 2007. My employer recently received a Notice of Levy of Wages from the IRS. Upon receiving the direct deposit for our refund, I noticed the entire amount owed to the IRS had been deducted. My employer then received a second letter from the IRS Releasing the Levy of Wages. I immediately contacted Victoria from JK Harris about this. Following are our conversations on Feb 27, 2007:

Good morning,
>>
I have a couple of problems, and was wondering if you can help me.

My employer recently received a letter from the IRS; a Notice of Levy on Wages, Salary and Income for the $4556.29 currently owed to them, and later sent a letter releasing all levies.

Due to our Accounts schedule, we had to complete our 2006 Taxes in early February. We just received the returns deposited directly into our account, and it looks as though they deducted the $4556.29 from our returns.

I was under the impression that the IRS had been notified that JK Harris holds Power of Attorney over our account and was working towards a resolution to have this paid. Why would they then try to garnish my wages for resolution and take the money from our Tax
Returns? That money was to go towards existing bills that need to be paid off. We paid JK Harris a large sum of money for this issue to beresolved, and our now losing A LOT more money than should have been to get this issue taken care of. It has been over 1 year since I first contacted JK Harris to get this problem done.

Please let me know how to proceed with this.

Thank you,

Amanda

Good Morning: I am sorry that the IRS took your return for 2006. Thisis a standard process. JKHarris cannot prevent that from happening. When you owe the IRS money, they will collect all returns until the debtpays in full and possibly levy. JK Harris can attempt to get a release of Levy.
Unfortunately if the tax return settled the debt we can not get that returned to you. The IRS will not return the funds. They would havekept the return this year and 2007. It is a part of the negotiation. I can advised you of the refund process as you now have no liability. You
would send a fax to the Review and Oversight department ATTN: ROD, fax that request to . Explain what you are requesting and the Refund dept. will process the request in 45 business days. This does not include holidays and weekend.

Thank You again.

Good morning Victoria,

I apologize; I feel like I'm missing something. So what you're saying is that I lost the $4600 that the IRS took out ALONG WITH the $2400 that I paid JK Harris for the issue to be resolved. I understand that JK Harris says it can take up to 24 months to be resolved, but I was never informed that this was to happen. If that
were the case, it wouldn't matter that it can take up to 24 months; it wouldn't be resolved by JK Harris after the point of taxes being due, unless one were to not file taxes (getting them in further problems).
So, now, instead of paying the original $2400 that was owed to the IRS, I am out $7,000.00!


Amanda

I am sorry that you was not informed that the IRS would keep your refund if you owed for prior years. Did you get a refund last year? You should not have gotten a refund since the year you owed. The reason is that the IRS will take all refunds until the debt is paid. The refund technically was not a refund in the IRS eyes. You owed them for a prior tax liability and they collected on the debt. The only thing I can advise at this time is to send in the refund request and see what the Review Department sends back to you as a refund determination.

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This afternoon, Tues, Feb 27th, I attempted to contact the direct Supervisor, however, had to leave a voicemail since had already left. As well, I went onto the JK Harris website, and found the following pieces of information that contradict exactly what the case specialist explained to me in the above email:

What To Expect

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Most clients want to know what, when, and how things will happen with their case. Learn more about the step-by-step process.
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Step-By-Step Strategy
We'll personalize a step-by-step strategy to work with the IRS on your case. The following timeline will give you a good idea of how our process works. Every case is unique and will receive personalized attention.

1. Immediate Relief
We lift the burden of IRS contact from you. JK Harris files the Power of Attorney with the IRS promptly. These documents not only give us the power to represent you, but they legally require the IRS to negotiate with us, instead of you. Please note: It takes the IRS some time to get the database updated to reflect your representative. You may continue to be contacted by the IRS during this time.



The agent may even tell you that we have not sent your Power of Attorney to them (JK Harris is not identified as your representative; the name of the Representative, who works for JK Harris, is identified). Be assured that we have sent them the proper paperwork. If you are contacted, tell them you have signed a contract with JK Harris and a Licensed Taxpayer Representative (Enrolled Agent, CPA, Attorney) will be representing you.

2. We attempt to stop any enforced collection activity.
If the IRS has begun enforced collection against you -- such as a lien or levy -- we immediately request a Stay of Collections (SOC).

3. You begin work on your questionnaires.
The series of questionnaires in your client package are vital to your case. Complete them as soon as possible. If you are participating in our Credit Card Expense Program, send us your credit reports as soon as you receive them. Customers who need help can call their case specialist for further assistance.

4. Our case specialists begin preparing your case
We evaluate your options and determine the best course of action. Once we receive your information, it is scanned into our database and automatically routed to a case specialist. Your case specialist will go to work for you to evaluate the most appropriate and beneficial course of action, then prepare a rough draft of your tax resolution, which might be an Installment Agreement, Innocent or Injured Spouse Relief, Penalty Abatement or Offer in Compromise (OIC).

Meanwhile, if you have any unfiled returns, our tax department, if contracted to prepare your returns, goes to work on those. Once we have received your credit reports, our Counselors begin working on your credit card debt, attempting to negotiate favorable terms in order for you to have more funds to resolve your tax problems.

5. We get you into compliance
You file your returns. Before you can negotiate with the IRS, you must be in compliance. That means all overdue returns must be filed. Our tax department, if you have contracted with JK Harris for tax preparation, will assist you so you can properly file your returns. It will then take 2-3 weeks for the IRS to record your returns (or you have the option of taking them to your local IRS office and getting them recorded and date stamped). Then we can proceed on your OIC.

6. We review your OIC or other tax resolution offer.
We will set a time and date to review your OIC or other tax resolution offer, and provide you with a list of supporting documents (for example, mortgage checks and bank statements) the IRS will require. We will also provide an update on the status of any of our negotiations with your credit card creditors.

7. You provide supporting documents.
Make a copy for your own files, then provide us with all requested documentation. This step is critical, because negotiating and settling your case with the IRS can only occur once this step is finalized. Your participation and timely cooperation is vital.

8. We submit your offer to the IRS
We finalize your offer. Once everything is assembled, we will review your documentation and the offer with you. You sign your OIC or other tax resolution offer, verifying that it represents the true facts of your case. Now everything is sent to the IRS. We review all information and documentation in order to verify we have formulated the very best resolution for your situation.

9. Resolution and peace of mind
We finalize your case. You must be prepared to wait. For an Offer in Compromise, it can take the IRS from 6 to 24 months to finalize your case. Other methods of resolution can be finalized much quicker. You may be asked to resubmit your documentation over and over again, because IRS rules require that whenever documentation becomes 90 days old, it must be updated. Stay strong. Remain patient.


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IRS Intimidation Tactics
The IRS rarely gives up without a fight. As we work to resolve your IRS problem to your advantage, you might expect the IRS to use one or more of the following tactics to attempt to persuade you to make a deal with them on their terms.

Keep in mind.
By law, the IRS must leave you alone. Once you become a JK Harris client and we submit your Letter of Representation and Power of Attorney, the IRS is legally required to deal with us, not you. The IRS may try to intimidate you into dealing with them directly. Don't fall for it. If you receive a call from an IRS agent, politely refer him or her to us, and end the call.

The IRS may try to tell you we aren't doing our job.
This is just another intimidation tactic. They may tell you we haven't filed this form or that form. Little wonder. The IRS has several databases, and they aren't all updated that regularly. In fact, the national database is only updated once a week. If you have any question about the status of your case, contact your JK Harris case specialist. We'll give you the facts. Our databases are updated daily.

The IRS may try to outwait you.
It may seem like it takes forever for your case to move through the IRS bureaucracy. It will be easy to get frustrated and to take the bait and settle on the IRS' terms. Don't. We will work tirelessly on your behalf until we achieve the best possible settlement for you.

The IRS will ask for your documentation again and again and again.
Be prepared to play their game. The IRS considers any documentation over 90 days old to be out of date. So make multiple copies of all your documentation at the start. And be prepared to submit and resubmit it.

After seeing this information, I contacted the IRS directly, to try and explain. After explaining my situation, the first thing I was asked was "Why didn't you just contact us directly in the beginning to find a resolution?" I explained to him that at that time, we were financially unstable and that after speaking with JK Harris, we were told this would be our best bet, as it is easier for JK Harris to contact the IRS than ourselves.

He looked up our account, and said the only information that they had received either via phone, fax or mail was a phone call from Victoria Perlich with JK Harris on December 7, 2006 stating that she holds Power of Attorney over our account. Other than that, nothing was received, and by that point, I had already been sent to collections.

So, it took JK Harris from Feb to Dec of 2006 (10 months) just to report that they held Power of Attorney over my account, which was in collections. And, a verbal verification would not be held without the official documentation (which I had already signed in Feb/Mar 2006). Unfortunately, at this time, my cell phone's signal went out and the call was dropped.

Doing some research on JK Harris afterwards, I found quite a few websites with A LOT of other people with similar complaints against JK Harris. I recommend taking a look at those as well.

http://www.ripoffreport.com/results.asp?q1=ALL&q2=&q3=&q4=&q5=JK+Harris&q6=&q7=&SearchType=0&Entry=16&DateRange=6&hasPhoto=

http://www.columbia.bbb.org/commonreport.html?compid=31001065

http://www.consumeraffairs.com/finance/jk_harris.html

At this point, I feel kind of helpless with this situation, but even more angry that a company would attempt to commit fraud like this, and that so many people have been burned by them. $7,000+ is a lot of money to just throw away, especially when most of that was in penalties, and interest going to a company that did NOT do their jobs correctly.
Thank you for your time.

Sincerely,

Amanda
Corona, California
U.S.A.