Tax Help Blog

Thousands of Clients Abandoned in JK Harris Shutdown

Posted by HB Duran, EA on February 8, 2012 at 3:20 PM

It seems the giant has fallen, but who will pick up the pieces?


After trying unsuccessfully to sell the company and filing for Chapter 11 Bankruptcy, the largest tax resolution firm in the county closed its doors in January. Not only were employees told to pack their things, an estimated 5,000 clients were simply abandoned in the closure - and any money they paid is gone. The company is apparently pursuing Chapter 7, which would liquidate all assets.

With Powers of Attorney still active in the system, the IRS will continue to cc JK Harris on all correspondences and unless their clients search the internet, they're going to assume that they're being taken care of. (Whether they were ever taken care of at all still remains a mystery.) JK Harris is known primarily for its claims of settling for "pennies on the dollar," pitched by healthy actors in their manicured back yard - a complete misrepresentation of who would even qualify for real IRS settlements.


Inside the tax resolution industry, firms like Achievable Dream are practically dancing in the streets. For every honest tax representative there seem to be so many more like JK Harris who prey on the frightened to make a buck. Companies like the Tax Resolution Institute are calling it "cleaning house" and we can't help but agree. The IRS Hit Man wrote that "the giant tumbles," and it's about time, considering the fact that 20 Attorney Generals and 15,000 clients pursued the company for false advertising. "There will be no recovery at all for the $20 million in general unsecured claims," said William McCarthy, JK Harris' attorney.


Help for back taxes is something that is needed very badly in this country and it's a shame that people are afraid to seek help due to scam artists. There are so many of us who legitimately want to help and can do so with professionalism and expertise. I have no doubt that on an individual scale, some employees of JK Harris are probably good at what they do. Attorneys, Enrolled Agents and CPAs do not have to work for a firm to represent taxpayers and John K Harris has been quoted as saying that they are free to offer representation to their clients after the shutdown.


Our thoughts and prayers are with those who lost their jobs, money, trust and representation as a direct result of this shutdown.


If you've been orphaned by JK Harris or another firm, take heart knowing that they can't hurt anyone anymore - call us for a FREE consultation and we will gladly help you start again. You have the right to honest representation - and we're not going anywhere.


TIP: No matter who you choose to represent you, don't forget to do research on any firm before signing up with them - a simple Google search can reveal a lot.

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