Got a new client that tells me that he signed a contract with Roni Lynn Deutch law firm. The client is self-employed and owed $15k on his 2006 income tax return. He apparently hired Deutch to help alliviate the liability. I read through the Deutch contract and it sounds like the firm is simply going to work out an installment agreement on the taxpayer's behalf. This client has good cash flow, is not close to bankruptcy and does not qualify for an offer in compromise. My conclusion is that the client paid this law firm $3,000 to negotiate an installment agreement. Just wondered what anyone else knows about this law firm, their services and their reputation. Have any of you encountered the firm with your practice? Thanks.
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Holy @#$%. I was wondering how much she charged for an installment. Unfortunately, she was hatched here in Sacramento, so I have heard too much of her schtick. That's how she can afford all those late night commercials. Slimy, sleazy pennies on the dollar promoter. -
Did you tell client..........
....that this could have been arranged for considerably less.
Including free by the IRS, except for their processing fee?Jiggers, EAComment
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yeah, it costs about 50 bucks. $2950 profit for about 5 minutes work.Comment
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I'd mention to the client that it cost them another $500 - $600 over what they paid the law firm, because that's roughly the amount of interest they would have saved if the $2,900 had been applied directly to the tax liabilty."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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You can buy a franchise
This firm is establishing tax preparation franchises throughout the country.
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Yeah, her push is to set them up in payday loan places. Thats how sleazy her franchise is.Comment
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Oh this is a good one under 'financing your franchise fee'
"Self-Directed Investment. Turn your retirement funds, such as your 401k or IRA, into cash to pay for the costs associated with opening your new tax business. To get more information contact Guidant Financial. "
Can you use a self directed IRA to open a business? Not if you want to take any money out of it!
Oh and this is a good caveat under all of the fees to start:
"10 Additional funds are an estimate of the amount of cash required to cover any operating expenses during your first three (3) months of operation. Neither we nor our affiliates have operated a business of the type being franchised. We cannot guarantee that you will not have additional expenses in starting the Business. Your costs will depend on how closely you follow the RONI DEUTCH TAX CENTER System, your management skills, experience, and business acumen, local economic conditions, the acceptance by local consumers of our approved services/goods, prevailing wage rates, competition, etc. "
I really like the part about how neither she nor anyone in her business have ever operated one of the type of business being franchised; ie a tax prep biz.
Have I mentioned just how skeezy this person is? In fact, I can't find enough detrimental adjectives to say about her operation.Last edited by joanmcq; 10-21-2008, 11:03 PM.Comment
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Pennies on the Dollar
In the last few months I have assisted clients in the resolution of two IRS Problems. The IRS wanted $33K from my parents and I was able to demonstrate that although I had in fact failed to show a Short Sale that was still open when the year ended and although the broker had failed to send in or the IRS had lost a corrected brokerage statement, the bottom line on the return I prepared was correct so there was no charge. The IRS wanted about 3.3 K from a real client on a return I had not prepared and I was able to show that although the IRS was right about certain mistakes made in the taxpayer's favor there were also mistakes in the other direction and the bottom line was that my client was due additional refund. If I were sleazy enough I could really do some advertising about pennies on the dollar but I keep coming back to the fact that all I do is follow the law and the facts - and sometimes I lose because the law and facts are arrayed against me and the most I can do for a client is an Installment Agreement. There is an EA who belongs to my Church and who has graciously agreed that if I think I have a candidate for an OIC he will take half the fee and hold my hand through the process if my clients are agreeable.Comment
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Roni Lynn Deutch
There has to be a way to expose these type of companies to the general public.
About the OIC...it is not difficult to do and there is no need to share your profits with someone else. I suggest paying him a fee to teach you the process.taxeaBelieve nothing you have not personally researched and verified.Comment
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Maybe instead of piling on RLD
we should look in the mirror and see if we are "giving away" our time for the fees we charge. My partner (wife) and I have already determined that we will be refiguring our entire fee schedule for next year, with the average client seeing a 30-50% increase in their fee. Part of this has to do with the fact that this will be the first full "season" in which I will have my EA, but also because I am truly determined to move my practice in a different direction, away from the EIC crowd and more toward the affluent and mid-affluent market.Comment
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I do charge quite a bit for an OIC; they are not really difficult, but are very time consuming with the amount of records you have to collect and compile. And if a person is SE, you need a P&L for the last three months which is not something the average joe that is so disorganized they didn't pay their taxes usually has on hand.
But 3K for an installment agreement? You gotta be kidding.
She was profiled in the local paper and this one guy with a back tax bill of about 20k was ecstatic about how she got the IRS off his back and manageable payments of $500/month. in other words, an installment agreement. I was wondering what he paid!Comment
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I must be the stupidest of all.This year I have arranged over 25 installment agreements and if I filed the returns I charge no fee. If not $50.00.Originally posted by joanmcq View PostComment
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Maybe instead of complaining about what other people charge, we should re-think our own fee schedule. It obviously takes some amount of time to help a client with an installment agreement. These things don't just happen in an instant of time.Originally posted by MLINDER42 View Post
Why are we the only profession that insists on giving away our knowledge and skills for free, and then complain when someone else isn't as stupid as us and charges for their time?Comment
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Bee, you nailed it. All to often many of us non-CPA, non-attorney types give away our services for free.Dave, EAComment
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