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NEWS UPDATES ON JK HARRIS |
From Consumer Affairs.com
Firm overstates its
ability to reduce tax debts,
suit alleges
April 13, 2009
Texas Attorney General
Greg Abbott today charged JK
Harris & Company with
misrepresenting their
ability to help Texans
resolve their unpaid tax
obligations. The state
charged that JK Harris
failed to provide promised
services, misrepresented its
employees’ professional
skills and experience,
overstated its ability to
reduce debts that customers
owe to the IRS, and accepted
large, prepaid fees from
customers whose tax
liabilities the firm knew –
or should have known – it
could not reduce.
“The
defendants are charged with
unlawfully misrepresenting –
and overstating – their
ability to reduce unpaid
debts that taxpayers owe to
the IRS,” said Attorney
General Greg Abbott.
“Struggling Texans who paid
large, upfront fees were
told that their unpaid taxes
could be resolved for
pennies on the dollar.
Today’s enforcement action
seeks restitution for the
defendants’ Texas customers
and a court order enjoining
the defendants’ unlawful
conduct.”
The
suit names JK Harris LLC and
related companies, JKH
Financial Recovery Systems
LLC, and Professional Fee
Financing Associates, along
with the firms’ owners, John
K. Harris and Charles R.
Harris, Jr. Citing Texas
Deceptive Trade Practices
Act violations, the state is
seeking an injunction,
penalties, fees and
restitution for the
Texas-based JK Harris
customers.
The
defendants’ advertising and
marketing materials claimed
that JK Harris could settle
customers’ unpaid tax
obligations for pennies on
the dollar. JK Harris
typically charged $2,000 to
$5,000 – paid in advance –
for its tax resolution
services, which largely
relied upon the IRS’
Offer-in-Compromise (OIC)
program.
According court documents
filed by the state, the
defendants charged customers
without actually reviewing
individual tax files to see
whether individual taxpayers
were eligible for relief
through the OIC program –
which is limited to very
specific situations. The
state’s investigation
revealed that few of JK
Harris’ customers qualified
for OIC relief. Further, the
suit charges that the
defendants often failed to
file their customers’ OIC
application forms and
frequently took no steps to
reduce customers’ tax debts.
When customers realized that
JK Harris had undertaken
little or no action, they
frequently demanded refunds
– and the defendants often
failed to return the
customers’ money.
Qualifications
The
state’s enforcement action
also cites the defendants
for misleading customers
about JK Harris’ regional
employees’ qualifications.
While the defendants’
advertisements claimed that
former IRS agents, CPAs,
lawyers, and other
professionals were
“available to meet with
consumers in 325 locations
in 43 states,” investigators
discovered that JK Harris’
regional offices are staffed
by sales personnel – who are
not trained tax experts. As
a result, Texas customers
who believed they could
actually meet with JK Harris
tax resolution experts in
person were misled.
The
Better Business Bureau and
the Office of the Attorney
General said they have
received approximately 1,000
complaints against the
company in the past 36
months. Texans considering
tax resolution services
should research a firm
before entering into a
contract or paying any fees.
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Missouri Sues JK Harris For Failing To Help Customers
Firm promises aid with tax problems, but doesn't deliver
August 14, 2008
We've all seen those JK Harris & Company commercials on TV that promise help
for people being bullied for back taxes, but according to the state of
Missouri, the help never arrives
As a result, state Attorney General Jay Nixon has filed a
lawsuit seeking full restitution from the firm for its Missouri customers who
received neither the services for which they paid as much as $4,500 each nor the
refunds they requested.
"JK Harris promises it can help consumers who are having tax
problems, but the Missourians who complained to my office told a different story
-- one of unreturned phone calls, lost paperwork, and a worse financial
situation than when they started," Nixon said.
The JKH Web site tells consumers the company has a
step-by-step strategy -- known as "The Process" -- to help consumers with their
tax problems. According to JKH, "The Process" includes providing immediate
relief to consumers by attempting to stop collection activities by the IRS;
assigning a case specialist to review the consumer's information and begin work
on resolving the customer's tax problems; and submitting an offer to the IRS to
resolve the customer's tax problems.
Consumers complained that after they paid for debt relief
services, JKH failed to follow "The Process" in handling customer cases. They
also reported that they often had to resend their financial disclosure
information and supporting documentation because JKH kept losing their
paperwork, and that they would learn that their assigned case specialists were
no longer working on their files only by calling JKH for updates.
Those consumers who requested full refunds from JKH because
they didn't receive the promised services had those requests denied.
Also named as a defendant in Nixon's lawsuit was a business
affiliated with JK Harris called Professional Fee Financing Associates LLC
(PFFA), which makes consumer credit loans as part of the JKH contract process
with its customers.
Nixon said PFFA's forms fail to disclose to consumers crucial
information about finance charges, payment schedules, the total number of
payments, and the total price the consumers will have to pay. PFFA also does not
have the required certificate of registration from the Missouri Division of
Finance.
Nixon is asking for an order requiring JKH and PFFA to provide
full restitution to all Missouri consumers from whom they have received payment
who have been hurt by the defendants' deceptive practices. The lawsuit also asks
for preliminary and permanent injunctions to prohibit the defendants from
further violations of Missouri consumer protection laws, as well as for
penalties and costs that the court deems appropriate.
Here are more letters regarding
JK Harris that were sent to
consumeraffairs.com strong>
Jeff of Waynesville NC (04/09/09)
I contracted with JK Harris May 2008 to
settle about $11K in IRS debt from tax years
2004 and 2005, penalties and interest. I
paid $1,500 up front with assurances that my
federal taxes would be reduced by half. I
sent the large amount of financial
information to JK Harris as requested and
waited. In the meantime, I continued to get
letters from the IRS about my past taxes.
Today - April 8 - JK Harris emailed me
completed tax returns with a total amount
owed of $9,400 - not including any interest
or payments the IRS may add!
Needless to say, this is a far cry from
the half off I was assured when I contracted
with them last year. I emailed them to ask
the sense in filing their returns, when what
the IRS will likely add in penalties and
interest will total more than what the IRS
said I owed them in the first place, prior
to involving JK Harris. I'm holding out hope
that there's some good news in this, that
there's simply something I'm not
understanding.
But in reading the reviews on this site
and others, it seems I've fallen prey to JK
Harris' overinflated advertising and
baseless, misleading promises. Absent
clarification from JK Harris and significant
reduction of my tax burden, I will seek a
refund. If that proves to be as difficult as
other dissatisfied clients say it is, I'll
be filing a lawsuit against JK Harris.
I've experienced continued worry -
that is, extreme emotional distress -
about my tax burden that apparently
could have been dealt with some time ago
had I contacted the IRS directly. I've
also accrued more interest and penalties
on my back taxes since contracting with
JK Harris.
Richard of Huntington Beach
CA (04/02/09)
In 2005 we
paid JK Harris attorney at his rented
office space, $3600 to settle my back
taxes. I completed the intensive
paperwork and turned it in to the
attorney who forwarded it for
processing. When I attempted to reach Jk
Harris to discuss why there had not been
any progress, I was told they never
received the paperwork.
My
relationship with JK Harris immediately
went to a hostile one because the
representative acted like a bill
collector to me. To this day no work was
done with the IRS. I requested a refund,
they agreed to a partial refund, but
have not paid it. When we follow up by
email (there is noone to speak with by
phone), they respond by saying they are
not able to pay now, and they are sorry
about that. I want to be part of a class
action lawsuit. Who do I speak with?
As you could imagine, we really
needed the assistance with the back
taxes, and we really need our money
back.
Steve of Chambersburg PA
(04/01/09)
This is my scenario
with JK Harris & Co. and how I resolved the
issue and got a refund. On 11/07/2007 I met
with a R. Behney. He explained the whole
process of JK Harris and what was involved.
He then asked me all kinds of questions and
within an hour he told me he could reduce my
taxes from around $50,000 at the time to
about $3,200. I was stunned and amazed at
the same time. I thought if it sounds to
good to be true it probably is! These are
professionals and should know what they are
talking about. I signed the necessary
paperwork and said let's get this thing
rolling. Within a week JK Harris called and
we were rolling. Through weeks of
preparation because my problem was both
business and personal, they got working.
This cost me $5,650 for the OIC and $450 for
them to do my taxes for 2007.
In
February 2008 they sent the final OIC offer
for me to review. The figure wasn't even
close. Their total was $47,373. I was
furious to say the least. I immediately
called them and they said they would review
my numbers. They did and said this is what I
owed. I argued they did nothing for me. They
gained me $3,000 with the IRS and I paid
them $6,000. I told them to not do my 2007
taxes and refund my money. I had to sign a
waiver and the refunded me $325. I then told
them I want my $5,650 refunded. They sent me
another form and I went back and forth with
the Review and Oversight Board for about 3
months. I finally decided to sign the waiver
and take a loss here also. I was more
interested in getting as much as possible
refunded. By signing, I agreed to a refund
of $3,743 out of $5,650. The form states 90
to 120 days before expecting the refund.
The stress over back taxes alone is
tremendous, let alone have a company like JK
Harris prey on you for more money. I waited
and called JK Harris so many times and
finally decided enough was enough. In
January 2009 I searched the internet and
immediately found out that 13 states had
filed suit against JK Harris and PA was one
of them. I contacted the PA Attorney
General's office immediately. They took some
information, told me to go to a website and
print out a form and send it to them along
with all correspondence from JK Harris and
myself.
In March 2009 an associate
from the Attorney General's office called
and told me that JK Harris claimed they paid
me in December 2008. I told her they didn't
and she said she was going to call again and
ask for a copy of the cancelled check. On
March 24, 2009 a person from JK Harris
called and told me to expect a check for
$3,743 within a week. On March 30, 2009 I
received the check. Everyone, contact your
states Attorney General's office. File a
complaint with them. Give them all the facts
and paperwork and see what they can do.
There are no guarantees it will work like my
case, but wht do you have to lose. It's Free
and it's your right.
Bardford of Charlotte NC
(03/31/09)
Don't do what JK
Harris claims they can do for you when you
can do it for yourself. The IRS simply want
the money you owe them. They will be glad to
take the money that you are paying JK
Harris. I had to call every week to get my
money back. You got to be like an agressive
credit card collector and they will get
tired of you calling every week trust me it
works.
Amanda of Marion NC (03/27/09)
We were having some trouble paying our back
taxes because of the economic hard times I'm
sure everyone is going through. We went to
JK Harris for help. A man in a small local
office promised us it could be reduced in no
time and that attornys would be working on
our case. He also promised us that all leans
and levies would completely stop. We paid a
large amount of money for him to do this for
us. After 7 months with no word from anyone
with JK Harris and a lien nitice from the
IRS I fired them and am in the process of
trying to get my money back.(wich will
happen or I will file a civil lawsuit and
get it.)
We are now so financially
behind its not funny and we cant even sell
anything to get the money because there is a
lean on our properties. This has taken a
toll on our marriage and family. I just pray
the outcome of this doesn't turn out much
worse. My husband has even considered just
going to jail to settle it. I begged him not
to so we've been doing everything else we
can. My husban and I love each other very
much along with our 2 children. I don't know
what to do! My husban is working daylight to
dark tryin to get us out of this mess and I
cant get a job because we have no one to
watch our children even if I could find
one.(wich the unemployment rate in our
county is 15%)Please pray for us.
Kerry of Allentown PA (03/25/09)
We went to meet
with them and the gentleman told us that
we did not have to pay the IRS. Instead
pay them. That was not true. They kept
taking money out of our account but not
doing anything. We told them they no
longer had permission to take anymore
money. We asked for a full refund and
have not received anything.
John of Wichita KS (03/23/09)
ThThis is a tax resolution firm that talks
good results and promises things that
cant happen or they dont do what they
say they can do, they only make matters
worse. I never thaught that I would be
decived by a con artist and ripped off
over $1000
Lost all my money,
cant pay bills and ruined my family and
my life. now my problems are compounded
and getting worse. p>
Corey of La Mesa CA
(03/21/09)
My Wife and I
paid HK Harris at an office in San Diego
$1300.00 to file back taxes. Evidentally,
they sent the case to another office.
After more than 8 months of repeated
inquiries, we received a package stating
that we owed $12,000 in back taxes. We
took the paperwork to a local tax
consultant who found numerous, large
mistakes in JK Harris' work.
We
re-filed through the local agent, and
received over $300.00 back in taxes. I
explained all of this to JK Harris in
faxes to Ms. Belinda Williams, but
received no response. We paid $1,300.00
to a tax professional and received
erroneous consultant services which
would have cost us $12,00.00. I've been
taken for at least $1,300.00.
John of New Smyrna Beach FL
(03/20/09)
Requested and was
granted a REFUND, because they had done
nothing for me except cost me $5200. To date
I have not received my REFUND it has now
been 8 months since I was told I would
receive the refund within 90 days.
Because JK Harris lost my information, and
failed to contact the IRS as promised, a
refund of $5200 was kept by the IRS for back
taxes owed even though I didn't owe the
taxes.
James of San Angelo TX (03/19/09)
AfAfter contacting JK Harris they assured me
that this was a cut and dry case no problem
they would settle with the IRS for pennies
on the dollar. Over the past two years I
have spoken to no lees than four Company
Reps.I made my down payment and they began
taking payments from my account on a monthly
basis. Iheard nothing from them and call
repeatedly . I rarely spoke to my caseworker
(C. Jackson) who said she had it all under
control (when I did get to speak to her).
Finally I spoke with my new caseworker (K.
Chapman) who informed me that Ms. Jackson
had failed to send the proper documents in
and the IRS would be turning my case down, I
would be paying the full balance plus
interest.
AS a father of four I have
been scraping to find to monies to pay these
scam artist plus fees for filing and forms
that are probably bogus. I'm out of my 1200
down payment, 900 in filing and paper work
fees, and another 2800 in monthly payments .
Not to mention the torment of knowing the
IRS can take my check at any time. I work
hand to mouth as with four kids it works out
that way . One is in placement for very bad
psychological problems and one at home has
severe ADHD and our medical bills are triple
what most households are. We had to save for
about 45 days just to make the so called
filing fees. Please help we are on the edge
of being homeless and another 350 a month to
the IRS would put us there. Thank you
Tom of Seattle WA (03/17/09)strong>
i canceled my contract with jk harris on
8/27/07, i was promised a refund of $712 (of
the 950 i paid them) i have contacted them
at least 10 times as well as the bbb and
washington state attorney general. their
response is that i am in line and will be
paid when it is my turn.
incredible
amount of time and $950. I don't understand
how they can stay in business and spend tons
of money on advertising when they cannot
afford to pay their refunds of two years
ago.
David of Bradenton FL (03/16/09)
I won a jugement vs. JKHarris and my lawyer
and I got paid after 3 years of dealing with
JK and 2 yrs 10 mths of my lawyer hard work.
paided jk 3100 for 6yrs tax return to be
done. they stalled lied cheated. i got check
for 20,075.24 from jk last wk and it cashed.
praise the good Lord amen. THEY CAN BE BEAT.
copy of check can be seen. THEY ARE GOING
DOWN.
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