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Showing posts from October, 2010

Dissecting a Retainer Billing Statement from a Large Tax Resolution Company

Retainer Billing Practices 101

All large tax resolution companies bill by the hour. The contract you sign, usually titled an engagement letter, service or work agreement, may not clearly state that you will be billed by the hour, sometimes it is hidden with broad language and vague legalese not immediately recognized by non-attorneys.  The salesperson may tell you it is a "flat-fee" but then you will be surprised when they send you a retainer statement a month or two down the road asking you to "replenish" your retainer by sending them extra money (usually thousands).

Here is a copy of a "monthly retainer billing statement" from one of the larger tax resolution companies. I am currently working with this taxpayer to obtain a refund from this firm he fired after coming to me.

Please keep in mind that I don't mean to suggest that everyone who works at these companies are necessarily bad people, but they are pushed by their management team to get in as muc…