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Northeast California

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BBB Accreditation

A BBB Accredited Business since

BBB has determined that TaxResources, Inc meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.

Reason for Rating

BBB rating is based on 16 factors. Get the details about the factors considered.

Factors that raised the rating for TaxResources, Inc include:

  • Length of time business has been operating.
  • Complaint volume filed with BBB for business of this size.
  • Response to 11 complaint(s) filed against business.
  • Resolution of complaint(s) filed against business.
  • BBB has sufficient background information on this business.


Customer Complaints Summary Read complaint details

11 complaints closed with BBB in last 3 years | 2 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 0
Billing/Collection Issues 0
Delivery Issues 1
Guarantee/Warranty Issues 1
Problems with Product/Service 9
Total Closed Complaints 11

Customer Reviews Summary Read customer reviews

0 Customer Reviews on TaxResources, Inc
Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 0
Total Customer Reviews 0

Additional Information

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BBB file opened: September 21, 2009 Business started: 09/12/1988 Business started locally: 09/12/1988 Business incorporated: 02/09/1989 in CA
Licensing, Bonding or Registration

This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.

These agencies may include:

IRS - Enrolled Agent

Type of Entity

Corporation

Business Management
Ms. Nancy Farwell, VP - Audits Mr. Mark Olander, CEO
Contact Information
Principal: Ms. Nancy Farwell, VP - Audits
Business Category

Tax Return Preparation Taxes - Consultants & Representatives Taxes - Enrolled Agent

Products & Services

TaxResources, Inc. offers tax audit information and defense resource for individuals and businesses.

Industry Tips
Tax Preparation

Additional Locations

  • 7803 Madison Ave Ste A-100

    Citrus Heights, CA 95610 (800) 922-8348

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Complaint Detail(s)

8/22/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: WOULD LIKE TO RECIVE A REFUND FPOR THE FOLLOWING:AUDIT DEFENSE TURBOTAX TY2013 1040 FED & ST ONLINE $59.99 AUDIT DEFENSE TURBOTAX TY2012 1040 FED & ST ONLINE $39.99 REFUND REQUEST IS DUE TO LACK OF SERVICE PROVIDED AND POOR CUSTOMER SERVICE. MANAGER ERIC VANCRAIG WAS VERY RUDE AND DISRESPECTFUL.

Desired Settlement: Refund and for information only to protect other cunsumers.

Business Response:

We are a membership organization with over five million members, and have been providing high quality Audit Representation for our members since 1988.  We handle over 24,000 audits each year.  Every member has a Membership Agreement which clearly outlines all the many member benefits, as well as our responsibilities to the member.  Just as clearly listed are the items that member needs to do to help us help him: 

  1. promptly contact us when the first notice is received;

  2. provide their signature on the Power of Attorney and return it to us in a timely manner;

  3. provide the information and documentation necessary to substantiate the various items of income and expense in question;  and

  4. comply with the audit procedure and strategy actions recommended by us and their Audit Representative working on their behalf.

It is unfortunate that this member intentionally, or otherwise, has repeatedly failed to follow the entire list as stated above.  Without the signed Power of Attorney no personnel from the IRS can legally speak to us.  On number 1 above, the membership states, the member must contact us within 15 days of the date on the first notice to allow us to defend their return, but Ms. ******s waited one month.  On number 2 above, she was contacted 17 times by telephone or email messages to allow us to help her help us, but she gave many reasons at the end why she failed to heed our requests for contact.  She stated her phone did not work, she was busy, her father was in and out of the hospital, etc.  Her inability to assist in her defense cannot fairly be placed on us.  On number 3 above, she never provided one document to support any of the claimed deductions on her tax return.  She did state she had a flood in her basement, but she could certainly have obtained copies of many of these claimed expenses from banks, charities, employer, doctors, etc.  And lastly, on number 4 above, she clearly did not comply with any of our requests that would have allowed us to defend her tax return.

She was selected for audit by the IRS because as the IRS notice stated, “…your gross expenses exceeds your income.” 

These repeated actions on her part made it impossible for us to provide a quality service that this person needed.  We had to withdraw from the case as she repeatedly violated the membership agreement so we could not legally represent her.  We had five different professionals work with her from the end of March 2014 when she reported the case late through June 2014 when we had to close the case as we still did not have one document supporting her claims on the tax return. 

In closing, her claimed amounts paid are also incorrect.  She purchased Audit Defense for 2012 on March 7, 2013 for $39.99, and for 2013 on February 4, 2014, for $39.99.  We certainly have sympathy for Ms. ******s’s situation, but we spent hours reviewing her return and reaching out to assist her, but never receive any cooperation.

However, as a continued show of our great Customer Service, we will be happy to refund her two memberships that she only paid $79.98 for.  The refunds will be processed separately as they are for different years.  Please allow 4-6 weeks for them to be processed.

Below is the timeline of events for this case:

Review of case due to BBB complaint

03-24-14  case reported with a notice dated Feb 27, 2014 meaning over one month old with a meeting set for April 2

03-25-14  Member(Mbr) sent email asking for “a process to excuse someone from the audit” as she claimed to have lost “years of important paperwork”

03-25-14  Audit Coordinator(AC) Left Voice Mail(LVM) for Mbr to call back

03-26-14  AC called Mbr and LVM (#2) and explained what would happen next and that she needed to be more responsive when called or we would have to close her case

03-26-14  AC sent MAP(our secure portal system) message (#3)

03-27-14  Representative(Rep) called  (#4) but mail box full

03-27-14  Review Rep sent MAP message (#5) as her voice mail box is full

03-28-14  a review was done by Audit Rep and found many errors\questionable entries on return.  Mbr stated she only has some records as most lost.

03-28-14  Mbr finally called the AC and stated “broke her phone” and she “is really busy with personal problems”

03-31-14  a proforma was done on the tax return to show what the balance due would be with no documents

03-31-14  Aud Rep called (#6) but mail box was full

03-31-14  Aud Rep sent MAP message (#7) with deadline of April 1

04-02-14  Mbr LVM about cell phone is not working as she is “unable to dial out”

04-02-14  Aud Rep called (#8) but voice mailbox full

04-02-14  Aud Rep sent MAP message (#9) with a listing of all the docs needed  with a deadline of April 3 to call and April 7 to send in docs

04-03-14  a recusal sent after 9 contact attempts and 3 deadlines

04-10-14  Mbr LVM about wanting clarification of recusal

05-12-14  Mbr sent in exam report dated April 2, 2014, again over a month old

05-12-14  AC called Mbr who stated she did not contact us since her “father was in and out of the hospital” and she “was very busy”

05-12-14  case opened again

05-19-14  Audit rep reviewed notice

05-19-14  Rep LVM (#1) for a call back

05-27-14  Rep LVM (#2) for a call back

05-29-14  Mbr LVM

05-29-14  Rep LVM (#3) for a call back

05-29-14  Mbr called back and stated all docs were destroyed.  Told Mbr we need something

06-06-14  VM sent (#4) needing docs or she should sign the report and gave deadline of 6-9-14

07-17-14  Mbr wants a refund

07-18-14  Lead LVM (#5) for a call back

07-18-14  Lead LVM (#6) that she would send her case to management

07-21-14  Audit Manager LVM (#7) for a call back

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

12/27/2013 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: failure to represent me in a timely and competent manor at the irs in an audit case, I filed my taxes for 2011 and 2012 with turbo tax and filed for audit insurance. - i received a letter from the irs, auditing the years 2011 and 2012. - i contacted taxaudit.com and followed all there requests and requirements in a timely manor. there representative ***** ****, did miss the deadline to deliver my paperwork twice, - when asked why i am receiving letters from the irs rejecting all of my business expenses, he placated me. after receiving a second letter by the irs rejecting my well documented expenses, i went to a accredited accountant, to represent me. after talking with the irs auditor it turned out that mr ***** **** and taxaudit.com had done nothing but send my paperwork to the irs, in close to 5 month they had not even arranged for a meeting with the irs auditor - leaving me and my business greatly exposed and in danger to be left in existential danger.

Desired Settlement: i ask that taxaudit.com or the company they belong to, will pay my current accountant who is doing the job there contract did obligate them - and agree to pay for any future representation in this case, including a possible tax laywer of my choice to represent me at tax court at possible appeals.

Business Response: Initial Business Response
This audit was reported to us on 7-9-13 by Mr. ************. He also told us at that time that he had not yet filed his taxes for 2012, but had filed for an extension. He also advised us that he had everything needed for the auditor. The case was reviewed by one of our inside audit representatives and discussed with the taxpayer on 7-10-13. We also called the auditor and left a message to confirm that this could be handled via correspondence. The auditor called the next day to confirm and requested the power of attorney as soon as possible. On 7-16-13 we received a letter from the auditor setting the phone conference for 8-7-13. We immediately called the taxpayer to alert him to the deadline so that the proper documents could be gathered, organized, and compiled by us, and then forwarded to the auditor prior to the phone conference so the auditor would have time to review the documents prior to the call. On 8-1-13, we called the taxpayer; he told us that he would send everything the next day on a thumb drive. That same day we sent an email to him for our proper mailing address. On 8-3-13 we received an email stating that he would send the thumb drive with copies of documents on this day. On 8-5-13 we received the flash drive and some of the documents. We also received additional documents uploaded to our secure portal on 8-5-13, at 4:12pm, Pacific time, which is after hours for this particular office, thus the representative didn't get them until the next day at 7:18am. On 8-7-13, the file was then organized, compiled and put together for forwarding to the auditor with the appropriate cover letter. On 8-8-13 the package was sent to Quality Control for review before sending it to the auditor. The package was sent to the auditor on Monday, 8-12-13, a system email was sent to the taxpayer to let him know the package had been sent. On 8-17-13 we received an email from the taxpayer stating that he had received a notice from the IRS disallowing his expenses because the phone conference was missed and he accused us of missing the deadline. We cannot make a deadline when we do not have the paperwork needed for it. We left two voice mails on 8-19-13, one voicemail on 8-20-13 and yet another on 8-22-13. We also received a phone call from the auditor on 8-22-13 telling us that she had received the documents and would review them as soon as time allows. On 9-2-13 we received an email from the taxpayer telling us that he had been in the hospital for a week and had only just seen our messages. He also would not be available by phone for a while and we should update him via email. On 9-17-13 the rep called the auditor and was told the case was on top of her pile, we then called the taxpayer and left that message as to status update. On 10-14-13 we returned the thumb drive and all of the original documents to the taxpayer as we already had additional copies of them in our system. On 10-24-13 we called the auditor for status update and she told us that we were second in her pile. On 10-28-13 the auditor called us to advise that she had some questions and was sending out a new Document Request. On 10-28-13 the taxpayer called us and we discussed the additional questions and problems that the auditor had with the information that had been submitted so far. On this date we also discussed the potential issue of a hobby loss being raised by the auditor as there had been losses from at least three years in a row. On 10-30-13 the taxpayer emailed a request for a copy of the correspondence that we had sent to the auditor. On this date we also received the Document Request and an interim exam report. On 10-31-13 the taxpayer emailed again requesting a copy of what had been submitted to the auditor. On 11-4-13 we left a voicemail for the taxpayer advising him that we had sent a copy of our cover letter to him but not the entire package as it was all his original documents which we had since returned to him. We also requested that he call back to discuss the exam report. On 11-5-13 we called the taxpayer again to discuss the exam report and he informed us that he had hired a CPA to prepare his 2012 tax returns and that he was using that person to finish his audit as well. We wished him well and told him that we would withdraw from the case. As this was an interim exam report accompanied by an additional Document Request, this was far from a final report. We can only assist any taxpayer when they promptly comply with needed information. As this exam was originally scheduled to be conducted by correspondence there was never any need to meet with the auditor. We do thousands of these every year and if the taxpayer has good backup documentation for expenses allowed by law, we get great results. This taxpayer's complaint is factually inaccurate. We will, as a courtesy, refund his membership fees. But, we have no obligation to pay for his accountant or attorney.

Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.) I did provide all paperwork and documentation as requested by tax recourses in a timely manner, - yet it was delivered late twice, when i contacted tax recourses about the late delivering of my paperwork i received a phone call from the representative, - when i received the second letter from the irs, - not accepting my business expenses, even though they where all documented, i was informed by phone that it papers the irs questions my status as a business disallowing my business expenses to be deducted - after 8 moth tax recourses had not arranged for a meeting with the irs auditor, nor had they any written communication, - they had not taken steps to support my claim to be a business, *(i am in business since 17 years). not making profits for 3 out of 5 years does not mean on is not a business, but that times are hard, and there are multiple other avenues to prove on operates a business, - non of which where suggested or pursued by tax recourses. realizing that further "representation" by tax recourses would put my business and my livelihood in great jeopardy i consulted with a licensed accountant, who then verified that all that the representative of tax resources had done was sending my material to the irs, and that not even a meeting was scheduled after 8 months. Tax-resources has failed to represent my case in a timely manor, and has put my livelihood in jeopardy do to there negligence. even in there answer they actually confirm that all they did in 8 months was send my material to the irs, -(they fail to mention that this was done late) I face now considerable costs and possible additional late penalties. I hold taxrecources responsible for the costs, since it results from there negligent handling of my case.

Final Business Response
We discussed this case with you on 7-10-13 and explained exactly what documentation was needed for your audit. We called you again as soon as we received the letter from the auditor on 7-16-13 setting the phone conference for 8-7-13. You never provided any of the information needed until 8-5-13 and 8-6-13. You left us no time to review or organize the records before sending them to the auditor for that individual to review prior to the phone conference on 8-7-13. The package of documents was sent to the auditor on 8-12-13. On 8-17-13 you emailed us about the interim exam report from the auditor disallowing your deductions, which is standard when an appointment is rescheduled or missed. On 8-22-13 the auditor called to let us know the documents had been received and would be reviewed as time allowed. At that time the audit was nowhere near closing and the auditor had not yet had the time to review the documents. We called the auditor on 9-17-13 and again on 10-24-13, on both dates she reported that it was on her pile of things to do. On 10-28-13 the auditor called us to inform us that she had some additional questions and would be issuing a new document request for those items, which we discussed with you on that same date. On 11-5-13 we called you again to discuss the new interim exam report and we were informed that you had chosen to continue the audit with the CPA that you had hired to prepare your 2012 tax returns. All of our audit representatives are licensed enrolled agents, certified public accountants, or attorneys. If you were unhappy with the representative who had been assigned to your case we could have changed the representative, if appropriate. Instead, you chose to go elsewhere, which is also your choice, but we are not responsible for paying your CPA. We will, as a courtesy, refund your membership fees if you would like.

BBB's Final Determination: After reviewing the position of all parties, BBB determined that the business made a reasonable effort to address the complaint. However the consumer remains dissatisfied.

12/31/2012 Guarantee/Warranty Issues | Read Complaint Details
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Additional Notes

Complaint: Tax Resources claimed to help me in the event of an audit. They were rude and difficult from first contact and refused to provide the audit service. There promise to provide complete and comprehensive tax audit defense is a fraud. They set me up with a audit representative who is not even in my state. After talking with there representative who was rude and unhelpful they continued to look for ways to not handle my audit. Ultimately they were so unprofessional I decided I better go find a new CPA in my area to handle my audit. I paid for this companies services for 3 years of my tax return and they did not deliver anything a complete ripoff. The do not state anywhere in there literature that you will be set up with an audit coordinator in another state. That is like have a legal case in your state and hiring a lawyer who lives in another state " the are complete frauds". In addition they said all they do is compile your info and send it to the IRS. So what does anybody need them for if all they are is a messenger service. Lastly, the try to make any excuse to deny servicing your audit and when you try to complain to the management they sick a rude aggressive sounding person to get you to go away.

Desired Settlement: Refund and complete compensation for my out of pocket expenses to defend my audit.

Business Response: Business' Initial Response
We are a membership organization with over three million members, and have been providing high quality Audit Representation for our members since 1988. Every member has a Membership Agreement which clearly outlines all the many member benefits, as well as our responsibilities to the member. Just as clearly listed are the items that the member needs to do to help us help him: 1. promptly contact us when the first notice is received; 2. provide their signature on the Power of Attorney and return it to us in a timely manner; 3. provide the information and documentation necessary to substantiate the various items of income and expense in question; and 4. comply with the audit procedure and strategy actions recommended by us and their Audit Representative working on their behalf. It is unfortunate that this member has repeatedly failed to do all of the things stated above. Without the signed Power of Attorney no personnel from the IRS or the State of Arizona can legally speak to us. We first requested the Power of Attorney on April 18, 2012 at 3:08PM and eight months later we still do not have it, after repeated requests via phone and written messages. We first sent a business questionnaire (containing questions that the IRS would ask) on April 11, 2012, at 11:24AM, and to date still not received that. Obviously, we would still have needed the required (by the Internal Revenue Code) documents, as listed in #3 above, which other members send when requested so we can successfully defend them. Additionally, this member has been aggressive with many employees that are trying to help him by threatening them with lawsuits, BBB complaints, taping their phone conversations, etc. He has been nonresponsive on numerous occasions to numerous employees that have tried to help him. These repeated actions have made it impossible for us to provide a quality service that this person needed. We had to withdraw from the case as he repeatedly violated the membership agreement so we could not legally represent him. It appears that he choose to represent himself as we never heard back from him for over six months after we withdrew nor did we hear from anyone that may have handled his case. We have had seven different employees attempt to assist this member to no avail. The last one was the Customer Advocate Manager who left voice mails on 11-20-12 and 11-28-12, a message was sent through our secure portal requesting contact on 11-29-12. We received no further contact from Mr. ****** until this complaint. The audit representative assigned to Mr. ****** is indeed in Arizona. The audit coordinators, which serve as liaisons between the taxpayer and the audit representative are in California.

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

12/31/2012 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: TaxResources and W. ******** ****** misrepresented me to the IRS for my 2009 Tax Audit and did not provide paid-for service per ******** order. On April 17, 2012 I received an audit notice from the IRS for my 2009 Federal Return. I had purchased protection through ******** with TaxResources when I filed my return. I contacted TaxResources and was assigned to W. ******** ******. In question was mainly my medical expenses. Having moved from California to Texas after giving birth in 2009, many receipts were lost. However, I was able to prove $7,547.26 in out of pocket expenses. ********'s first submission to the IRS resulted in a mass rejection of receipts on 09/14/12 because he did not review the quality of the printouts he was submitting to the IRS. Another submission was made. The IRS did not accept all of my proven receipts but would not indicate which were rejected and which were accepted. Additionally, the IRS now claimed that I owed more in taxes than I did without receipts. I pressed ******** for answers from the IRS. He would not respond in writing to my request. I asked for a copy of what he submitted on my behalf and he would not reply. I copied another person at the company and finally received a download of what he sent. He did nothing but write a basic cover letter without any explanation to the IRS and faxed it to their office. There was no audit defense and his submission was confusing and incomplete on my behalf as my power of attorney. I created a detailed spreadsheet showing all the figures the IRS needed for an accurate calculation and he refused to verify the figures, thereby ignoring over $1,140.00 worth of proven and verified medical receipts for 2009. He also refused to request to the IRS that they correct my status from Single to Head of Household. Again, I requested that he recalculate my 2009 return based on our proven numbers and he refused to reply. I cc'd an attorney and received a response that he suggests I pay the IRS what they claim I owe and to educate myself on how to do so. This is a fraudulent company making fraudulent claims of audit defense. I wasted my time and money on this service, which only sent fax cover letters on my behalf and did not verify figures through accounting practices, did not check the quality of their submissions on behalf of clients, and refused to share documents and information important to the IRS audit process. At this time, my response to the IRS is due in two days and I am left without the defense I paid for, and due to TaxResources not resolving this issue with integrity between the dates of April 17, 2012 and the current date of December 04, 2012 the IRS has both accrued and compounded interest against me on a dollar amount that I do not owe.

Desired Settlement: I am seeking a refund of my payment for this service at the rate I paid in 2009, which I believe to be $49.00, in full, with interest at the current bank rates. I am seeking reimbursement for all interest that has therefore accrued against me with the IRS during the time TaxResources misrepresented me, at this time totaling $154.03. I am also seeking reimbursement for the dollar difference of my proven medical receipts submitted to TaxResources minus the medical receipts they submitted to the IRS which they refuse to demand information on per rejection, totaling $1,140.00. I am also seeking TaxResources sending the IRS and me a letter asking the IRS to extend my time for this audit to secure new representation. Additionally, I would like for a Vice President or higher who is in direct like supervision of Mr. ****** to contact me personally regarding this matter.

Business Response: Business' Initial Response
TaxResources Inc. is a membership based organization that handles IRS and state audits for our members. We have over three million members and have been helping them since 1988. We request the documentation that the Internal Revenue Code requires taxpayers keep and use to prepare their income tax returns. While Ms. ******** is correct, it would be nice if the IRS would "be reasonable" when unfortunate things happen to taxpayers such as Ms. ********, the IRS is well within its scope to disallow expenses if the taxpayer cannot provide proof of payment and the associated bill. Ms. ******** had incurred medical expenses in the year in question, no doubt; however, as she stated, she lost many of the legitimate expenses that could have been deducted. And when a taxpayer does not have the required receipts and the proof of payment (cancelled checks or credit card statements) the deduction is disallowed by the IRS and the state taxing agency. In Ms. ********' case, she was able to provide less than half of the medical expenses listed on her return as well as just a fraction of the charitable contributions listed on her originally filed return. While we were able to have the $350 penalty abated and prove some of the expenses, based on Ms. ********' receipts, she still ended up owing taxes. In a phone conversation with her on December 5, 2012, she now understands that and agrees to make an installment agreement with the IRS. She now knows that we have provided the assistance that was available to her and we were able to reduce the taxes she owed. But there is still good news, as her Audit Representative pointed out to her in May that she inadvertently used the wrong filing status so she will be amending her return to reduce the taxes she currently owes. We will, as we do with all of our members, follow up to ensure she understands the importance of the installment agreement and the need to file the amended returns to decrease the amount of taxes she legally owes.

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

10/9/2012 Delivery Issues | Read Complaint Details
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Additional Notes

Complaint: Audit ID:XXXXXXXXXXTax Year:2010Agency:Internal Revenue Service (IRS)Audit Status:Waiting for Agency ResponseAccount Number:XXXXXXXFirst ******************** Name: ****** Email:*****@gmail.comI submitted my tax audit information on 7/11/12. Tax Resources, INC failed to get my Tax Return to the IRS on time. They filed an extension and resubmitted. The resubmitted tax return received a positive receipt confirmation from the IRS. Yesterday, 9/19/12, I was informed the IRS lost my tax return. My audit rep faxed my return to the IRS and stayed on the phone with the IRS agent until the return was fully received. I was informed I am going to get a "Final Notice" from the IRS. I do not want to have assets seized or go to jail. I submitted all of my information on time to my tax audit company and they have not fulfilled their end of the agreement. I have also asked for a copy of my tax return and all positive confirmation receipts of mail returned from sending packages to the IRS. However, Tax Resource, Inc has not sent me this information - I asked via email and on the phone. But never got the information I requested. They are telling me it should be complete around the first week of October - however, they've failed to deliver twice. I do not want my assets seized, I do not want to go to jail, I do not want to pay excessive fines - because I took care of all my information and I should only owe around $50 in past due taxes plus interest. They need to get this taken care of an get my copies of my information.****** Product_Or_Service: Tax Audit Protection Order_Number: XXXXXXXXXX Account_Number: XXXXXXX

Desired Settlement: DesiredSettlementID: Other (requires explanation) (1) Stay on the IRS until my return is processed. Call, mail, email, and fax the IRS everyday until it is done.(2) Send me a copy of my return(3) Send me copies of all mail confirmations from the IRS (recipts of my tax return being mailed and faxed to the IRS)

Business Response: Business' Initial Response
The information requested by IRS was faxed to them on 6-4-12. It generally takes 8 to 12 weeks for them to respond. On 8-6-12 we called IRS to inquire as to the status and they told us they never received the fax. This is a systemic problem that the IRS is aware of and they are trying to determine what the problem is. Mr. ****** was notified as to this problem. The information requested by IRS was then mailed on 8-7-12 via certified mail with a return receipt requested. We did receive the receipt. On X-XX-XX we called IRS again to determine the status of the case and they informed us, yet again, that they did not have the case and had received nothing. This time, this person stayed on the phone with us while the original response was faxed again and the receipt was confirmed. Again, this is a systemic problem that the IRS is aware of and they are trying to determine what the problem is. Mr. ****** was notified again. Now that IRS has the documentation, the case can be assigned and worked, unless they lose the documentation yet again. This again takes 8 to 12 weeks, even though this is a systemic problem within IRS, there is no way to speed up this process. If the IRS' computer system issues a "Final Notice" we will continue to work the case and put the notice on hold until the submitted documents have been reviewed. This "Final Notice" is not really final at all and there is no threat at this stage of having assets seized or going to jail. Mr. ****** did request a copy of what we submitted to IRS along with the fax confirmation and the mail receipt, and he is correct, we did not get that to him. Unfortunately that seems to have been overlooked. We have left two voicemails for him to ask if he would like it sent via US Mail or through our secure portal. These records will be mailed tomorrow. We are continuing to work this case but we cannot call again until 30 days after 9-18-12.

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

9/7/2012 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: Tax Resources Inc failed to honor their agreement and refused to provide any services that were paid for in advance. Tax Resources refused to provide the services that their agreement states. Their providers were rude, aggressive, argumentitive and down right nasty. Their job is to defend the customer with any audit defense that is needed. They refused to perform any of the duty or tasks and the only suggestion was for the customer to perform thousands of dollars of work that should have been included within the original agreement. They tried time and again to refuse service for any reason they could think up. Including stating that the audit was not a "real" audit since the official letter from that state just asked for further information. They lie and are one of the poorest examples of a company I have ever dealt with. Even after researching and providing specific state statutes detailing exactly what is required of a tax payer they refused to even perform the most base of services.

Desired Settlement: My expectation is re-imbursment for all of the activities that I have had to perform or contract another party to perform on their behalf in order to defend the audit. I also expect a formal apology along with a detailed action plan on why this will never happen in the future.

Business Response: Business' Initial Response
04/27/12 3:52pm Mr. ********, I am sorry that you have decided not to allow TaxResources the opportunity to complete the representation of your Alabama audit. Since you will not assist us in your own defense, please accept this as notification that we have ceased providing services to you in this matter. If we have any original copies of documentation regarding your matter, they will be returned to you immediately. TaxResources is not responsible for any tax, penalty, or interest due to any agency. The $2,061. is your responsibility and no reimbursement from TaxResources will be forthcoming. This is the entire Series between the consumer and TaxResources, Inc. The most recent email is on top. *Please see attached.*

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

7/17/2012 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: Not only did they not represent me, they walked away from my audit, wishing me "good luck in tax court"! Although I have used Turbo tax for many years to prepare my taxes, I only purchased Audit Defense in 2007, and later in 2008. Lo and behold, I was audited in 2007 and later the audit was extended to 2008. I immediately contacted Audit Defense to assist me. They informed me of the documents I needed to provide, which I did, but their representative was uncommunicative regarding how he was intending to represent me. As a result, the audit went from stage to stage until I was informed that I would have to appear in tax court to settle the issue. At that point, the Audit Defense representative informed me that he would no longer represent me, and wished me "good luck in tax court." As a result, I was forced to hire a private accountant. Thankfully, the result of his efforts was that the IRS agreed that there were no deficiencies in income tax due, nor were there any penalties owed. My accountant informed me that it is clear from the IRS documentation provided that the representative failed to provide the IRS with adequate information to defend me. Repeatedly, the IRS stated in the taxpayer position: "No position has been provided for this issue." My accountant is of the opinion that the representative did not adequately review or analyze my position, for had he done so, it is clear that he could have explained to the IRS my position much earlier in the process, requiring much less time, effort and expense. Therefore, my accountant is of the opinion that Audit Defense should cover my accountant's expense of $7,500. I corresponded several times with Audit Defense, respectfully stating my position. However, I just received a nasty reply insinuating that I was at fault, and that they would not be "reimbursing me for work that should have been performed prior to filing my tax returns"!

Desired Settlement: Reimbursement of my private accountant fees of $7,500, since not only did they not represent me, but their representative caused me damage, which my private accountant had to undo.

Business Response: Business' Initial Response Company states (JLS): Dear Ms. ******, You first reported the 2007 IRS audit to us on March 9, 2009. There were several appointments kept by our representative with the auditor with very little documentation provided by you to support the numbers that you put on your tax returns. The audit was expanded to include the 2008 tax return in August of 2009. The auditor finally issued an examination report for both years on November 22, 2009. Our representative continued to attempt to contact you for additional information. After repeated attempts to contact you for more information to be provided to the auditor, and little or no response from you, we finally withdrew services on January 5, 2010. You did call us the very next day. You were informed that if you could get the documentation together, quickly, that we could reopen the case. On January 12, 2010, we contacted the representative who confirmed that he had not heard from you. We closed the case. On May 17, 2010, we received a certified letter from you. Upon researching the case, Mr. ***** called you on June 15, 2010, to discuss this matter. You, on your own, decided to use another CPA to complete this audit. On September 2, 2011, you sent us another certified letter. You claim that our representative allowed your case to proceed further and further. Our representative can only present your documentation to support the numbers that you put on your tax returns. Then you state that your accountant had to spend many additional hours gathering, reviewing, analyzing and preparing documentation to substantiate your tax return data. This is called bookkeeping and is specifically excluded from our services. This is all work that should have been done before you filed your tax returns. Had you gotten us the necessary documentation, even if you had to hire someone to do this bookkeeping, if there was merit to your case, we would have filed a petition with the United States Tax Court and dealt with the Appeals Officer on your behalf. Instead, you chose to have someone else provide these services for you. That is certainly your choice, but we will not pay for those services. Then you chose to include copies of only the last page for each of the auditor's lead sheets to make it appear that we had not worked your case. Please see enclosed al of the various copies of the auditors workpapers clearly showing what documentation was provided and what was not, as well as the government's position for each of them. The taxpayer's position section of this worksheet is for disagreeing with the auditor's interpretation of the tax law in issue, not for documents submitted. The deception of the documents submitted is on the prior page. You were very careful to make sure to craft your letter to make sure that you appear to be the innocent party. The correspondence that you provided regarding the closure of your audit cases did not address which items were disallowed and which were not. You could have had over $21,000 of deductions on each year disallowed without any additional tax due. You clearly intended for this communication from you to be dealt with by an administrator type, not a tax professional. You were mistaken. TaxResources, Inc. will not be reimbursing you for work that should have been performed prior to you filing your tax returns. ****** K. ****** VP of Audits

Consumer's Final Response (The consumer indicated he/she DID NOT accept the response from the business.) My first problem is in the company's second sentence of the response. "There were several appointments kept"-according to my accountant, this should have been unnecessary. Why was the problem not resolved immediately in one or at the most two appointments with the IRS? I provided the company's representative with all the documents he requested--the same documents I turned over to my private accountant, with which he was able to resolve my issue. The additional hours my accountant had to spend gathering, reviewing and analyzing data was not because my bookkeeping was deficient. He had to gather, review and analyze what the company's representative had calculated in order to undo the damage he had caused. My accountant clearly stated that had this issue been dealt with appropriately it would have cost at most $2000. But because he had to spend so many additional hours reviewing and analyzing what the company's accountant did, and then meet with the tax court mediator, he had to spend so much more time, as is reflected in the additional cost of $5500. Finally, I wrote a respectful letter explaining my position. As such I was most surprised at the nasty and cynical tone of your response. Perhaps the company had to resort to this, since they had no other way to defend their position! To reiterate, I do not accept the company's response. I feel that their representative was inept, and did not represent me adequately. As such the tax audit progressed further and further, and not knowing how to adequately represent me, the company's representative abandoned me with, "Good luck in tax court." When I called the company to complain, the company did not immediately offer to assist me, as stated in their response. Rather, their offer was, "send us your documents and we will decide whether we will take you back." With a tax situation that had progressed so far, upon professional advice, I did not have the liberty of extra time for someone "to decide" whether they could help me. I needed to act immediately, and that's why I was forced to hire a private accountant. Therefore, I remain in my position, and I am requesting that the company reimburse my private accountant fees of $7500, since not only did they not represent me, but their representative cause me damage which I had to pay a private accountant to undo.

Business' Final Response Company states (JLS): You first reported this audit on 3-9-09. At this time we requested copies of the audit notice and the tax return for that year. On 3-16-09, these items were requested again. On 3-23-09, these items were requested for the third time via email and voicemail. On 3-24-09, you emailed back that you would send them tomorrow. On 3-30-09, these items were finally received and we emailed you the Questionnaires required for this audit. On 4-3-09, we sent an email and a voicemail reminder for the Questionnaires. On 4-6-09, we received the Questionnaires. On 5-6-09, the representative assigned to your case sent you an email reminding you of the appointment scheduled for X-XX-XX and again requesting the documents needed to defend your tax return. On 5-7-09, the representative emailed you to inquire as to when you would have your documents ready. On 6-2-09, the representative sent you another email to remind you of the appointment set for 6-9-09, requesting the docs again, and requested a call back to discuss. On 6-10-09, the representative faxed another "document request" from the IRS to you. On 7-7-09, the representative sent another email to you regarding the status of the requested records, and requested that you "please respond". On 8-17-09, mostly due to your failure to respond in a timely manner, the audit was expanded to include the following 2008 year. On 9-2-09, the representative emailed you that the auditor had been in his office that day and is taking the following actions as very little information had been provided as requested numerous times. 1- The auditor was going to issue a report for 2007 based on what little information had been presented. 2- The auditor was going to summons the bank records for both years. 3- The auditor is preparing a report for 2008 based on the information available. The auditor will then allow you 30 days to respond with clear and convincing documentation in order to refute her findings. On 11-24-09, we received the exam report issued by the auditor on 11-20-09. This report gave you until XX-XX-XX to respond. On 12-11-09, the representative sent you an email requesting a status update. On 12-16-09, the representative sent you another email stating that all of the documents that you had sent to him had been forwarded to the auditor. On 12-21-09, the representative email TaxResources again regarding the new examination report that included income adjustments for deposits in excess of reported income. On 12-23-09, the representative emailed you about the bank deposit issue. On 12-30-09, the representative again requested status of bank deposit analysis that is needed by 1-5-10. On 1-4-10, a reminder email was sent. On 1-5-10, TaxResources withdrew from your case due to your failure to comply with deadlines. On 1-6-10, you called in about the withdrawal letter and your call was returned shortly. It was explained that if you cared to submit additional documentation the file would be reviewed again to see if we had enough information to reopen the case. Until then, the case remains closed. On 5-17-10, you sent us a certified letter stating that we had breached our contract. For 14 months you had consistently missed deadlines and failed to produce the documentation that should have been in order when you prepared your tax returns. After researching the case we called you on X-XX-XX to discuss your complaint. We reviewed all the dates and times that emails and voicemails were sent, your response was that it takes times. You complained that no one explained strategies to you when in fact, if you don't deliver any requested docs until the day of or the day before the appointment, there is no time to review the information and then discuss strategies. Even on 1-6-10 we invited you yet again to submit your documentation and then discuss strategies. Even on 1-6-10 we invited you yet again to submit your documentation so that we could reopen your case. You decided to use another CPA to continue your case. On 9-13-10, we received another letter dated X-XX-XX complaining that our representative allowed your case to proceed further and further so that your new accountant was forced to file a petition with the US Tax Court and then spend hours and hours more gathering, reviewing, analyzing and preparing documentation to substantiate your tax return data and then meet with an appeals officer. We do congratulate you on the no change result to your audit. However, none of those activities are covered by your membership with TaxResources. Now you have filed a complaint with the Better Business Bureau and then have disagreed with my response to your complaint. You do not like my second sentence which says there were several appointments kept with the auditor. You say that your accountant says this should have been unnecessary. We do agree. Our representative should never have attended an audit meeting without substantial documentation. He has been reprimanded for that. You then state that all of the documents had been submitted to our representative - the same documents that you later gave to your new accountant who had to spend hours and hours gathering, reviewing, analyzing and preparing them for submission. Again, this is bookkeeping and is not covered with our membership. It was 14 months after this case was opened when you called to complain that we were withdrawing from your case. At that time we again offered the opportunity for you to submit docs for us to review to see if we could reopen your case. You say now that you didn't have the liberty of extra time to decide. Well, when we have reviewed virtually nothing for over 14 months we are not going to reopen the case without proof of documentation with merit to proceed. You chose to go elsewhere.

BBB's Final Determination: After reviewing the position of all parties, BBB determined that the business made a reasonable effort to address the complaint. However the consumer remains dissatisfied.

7/16/2012 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: Thier Techincal Errors, Programs that Delete or Fail to Save Hours of Work, and Lack of Communication cost us our retirement fund of $11,000 dollars. The document portal system and communication patterns at Tax Resources caused us to be late in submitting documentation for our Tax Audit, resulting in $1600 in additional fines and interest. The CPA selected by Tax Resources further provided no guidance until the deadline approached, not giving us enough time to gather documentation he needed, advised us to "do nothing" and refused to submit all of the documents we provided, still in possession of original documents we needed for a 2nd opinion. He furhter admitted he had not even completed a review of our receipts prior to the scheduled audit, which we believe was the real reason for his advice to do nothing that cost us additional fines. Finally, he threatened that if we went forward with the audit, it would cost us more, but we suspect this is false, and we paid about 10k more in taxes than we would have owed if we did our own audit, unrepresented.

Desired Settlement: Tell the IRS it was your fault we delayed our response, and ask them to waive the penalty. Give us all of the documents we submitted and now can not download from your portal, so that we don't have to redo everything we had to do while using your frustrating and cumbersome system, which constantly failed to save our work. Fix your system and communicate with people more often, helping them to prioritize. Don't make people use your stupid questionaires or mileage logs. Let them submit what they already have.

Business Response: Business' Initial Response Here is our contemporaneous log for this case: XX-XX-XX case reported (1st notice dated X-XX-XX and 2nd notice dated 4-5-12) XX-XX-XX AC (audit coordinator) requested docs XX-XX-XX Mbr (member) sent notice and return thru TRIMAP successfully XX-XX-XX AC LVM (left voice mail) for IRS that we will not be attending the meeting XX-XX-XX Rep (tax professional) completed Audit Review (Mbr called back at 4-16-12) mbr will recreate his mileage logs XX-XX-XX AC sent Questionnaires to Mbr via TRIMAP (secure portal) XX-XX-XX AC sent "what we need" docs to Mbr via TRIMAP XX-XX-XX AC sent POA (Power Of Attorney) via TRIMAP XX-XX-XX AC called Mbr who will sign and date POA and sent to rep XX-XX-XX AC LVM for POA XX-XX-XX Mbr sent VM working on mileage log XX-XX-XX AC LVM for POA XX-XX-XX Mbr sent POA (signed wrong) XX-XX-XX AC LVM for POA done right XX-XX-XX Mbr sent POA XX-XX-XX Mbr sent Rep mileage log XX-XX-XX Rep sent EM on still needing the docs to defend the return XX-XX-XX Rep sent EM again listing the docs needed other than mileage log XX-XX-XX Mbr still having trouble gathering all docs and felt her "former assistant may have thrown out" some of the docs. XX-XX-XX back up docs sent from Mbr to Rep for a meeting with the IRS on 5-29-12 XX-XX-XX Mbr sent EM (email) asking for their info back as they are going to pay the amount the notice shows. XX-XX-XX AC LVM with Mbr to go over her concerns XX-XX-XX Mbr returned my call. We went over her concerns and she understands the IRS did not "fine" her for not responding. I went over her options regarding the case and that if she had all the documents the IRS asked for she could still submit them. She agreed to send me the last report so we could review it to determine if it was correct or not. XX-XX-XX Mbr LVM and decided not to send the report but just pay the bill as she "did not have time to gather all the documents." She has asked for her documents back. XX-XX-XX Closing letter sent with her documents that were in the office. BBB report has the following complaints: 1. technical errors 2. lack of communication 3. Document portal caused us to be late in submitting documentation 4. CPA provided no guidance 5. Not enough time to submit all of the documents 6. CPA advised us to "do nothing" 7. CPA refused to submit all the docs 8. CPA did not review the receipts 9. CPA "threatened" that if they went forward, it would cost them more Responses based on contemporaneous notes and facts 1. By the member's own words, she could not find all the required docs so it was not a technical error it was not having the documentation. 2. The contemporaneous log of emails and phone calls shows there was communication, what was lacking was cooperation 3. The documents were not found to send in a timely manner. The only docs sent were received on X-XX-XX for an IRS meeting on 5-29-12 on an audit that was issued on 3-26-12. 4. The CPA requested the needed documents numerous times but the TP was unable\unwilling to provide them. 5. As the notice was dated back in March of 2012, the taxpayers had more than sufficient time to produce or recreate the required docs. 6. The records clearly show the CPA was trying to have taxpayers submit the documents that they used to originally prepare their taxes. 7. The CPA could not submit what was not given to him. 8. The CPA could not review items not sent to him and the few that were sent were only sent days before the audit meeting. 9. The CPA explained numerous times what was needed to substantiate their numbers on their return We are a member organization that provides the highest quality of Audit Defense for our members since 1988. This member received an audit notice from the IRS dated X-XX-XX and as they did not notify us to assist them, the IRS sent a 2nd notice dated 4-5-12. This member then notified us of the audit on 4-6-12. We asked for the documents that the IRS demanded, which, legally they have the right to do, to support any deduction on the tax return. The member certainly felt she had reasons that precluded her from delivering those documents to us so we could defend her tax return. She felt that her former assistant may have thrown out the documents "before he committed suicide. She certainly had many opportunities to send (fax, mail, or safe portal) the requested documentation. Here is the last of many communications (verbal and written) that requested over and over the documentation needed: 5/23/12 at 10:30am From: ****************, EA To: ****** ****** ******, We still need to talk but I wanted to get you a list of the information we still need. As far as I can tell I still need all the information requested by the auditor except copies of the tax returns and your business mileage log for 2009. We do need mileage information for Robert also but since it is so close to the audit meeting and he says his vehicle is only used for work, we might be able to get away with a mileage summary of his route and any pickup of the product/magazines (like from MapQuest) and a listing of the days he did the route or pickups; along with copies of repair or maintenance receipts. Since I have heard you have been having trouble getting information onto the portal (website) I will set up a series of specific tasks to get the individual pieces we still need. 1. Mileage log for ****** for 2010 2. Mileage information for Robert for 2009 and 2010, plus receipts. 3. Copies of W-2, 1098s, etc. 4. Copies of work papers you used to prepare your returns in 2009 and 2010 5. Copies of any repair or maintenance receipts for ******'s car. 6. Copies of receipts and canceled checks for repairs on Robert's Schedule C. 7. Copies of receipts and canceled checks for Residential Energy Credit (Metal Roof) for 2009. 8. Listed bank account information for all bank accounts including bank name, account numbers, balances on Jan 1, 2009; Dec 31, 2009 and Dec 31, 2010. 9. Listed details for any non-taxable income, like loans, gifts, inheritances, VA benefits, etc. Let me know if you have any questions and we should still set up a time to talk. Thanks, **** Even after all of that and after her baseless complaint to your organization, we offered to help her if she would send in the last notice, which she agreed to do on 6-18-12. But two days later she left a voice mail deciding to just pay the tax bill as she did not have time to gather all the required documentation. We are unable to defend a taxpayer's tax return without the proof as required by the Internal Revenue Code.

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

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