Quote:
Originally Posted by HippoNipple
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Debt consolidation services is for poor people that have too much credit card debt they can't pay. You are dealing with people that may be considering going bankrupt and helping them pay back debt by negotiating the debt down. It is a miserable business and has absolutely nothing to do with taxes.
Tax resolution and debt consolidation both have to do with owing someone money but that is where the similarities end. People requiring tax resolution are very successful or they wouldn't be in a situation where they owe a lot in taxes in the first place.
When people make a lot of money, sell businesses, maybe have a capital intensive business they can mess up a lot of things when doing their taxes.
I do financial planning and we had a client seek out tax advice for their company. The CPA went back 3 years and ended up saving her $300k and she got that all back from the IRS. The client herself is worth about $10 million. The type of clients needing tax resolution vs debt consolidation are not comparable.
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I agree with all this but debt is debt and people who can't pay their debt aren't wealthy. For example, the dealership I'm partnered with made 1.6 million last year, it was a little over 400k in taxes for the year. No tax resolution was needed. When it gets to the point of "resolution" you aren't very successful. Resolution isn't for successful people at all. As you just said most companies who aren't in the shitter use a CPA or Tax Prep. People make mistakes but a 1040X isn't too complicated and so many online services nowadays to amend any issues. Do a basic google search of "Tax Resolution" and it is basically the same kind of marketing/services as debt consolidation with the only differences being one is a tax debt, the other is personal/business debt.
Forbes article on "Tax Resoluton" -
https://www.forbes.com/sites/stephen.../#5ae8ce966da7