Yesterday, my wife and I attended the 50th-anniversary screening of Jaws at the Movie Theater. I remember seeing this movie as a kid, and it scared me back then, and scared the heck out of Liz. But today, I wanted to talk about a different type of Shark.
Last week I need to share a story that perfectly illustrates why most families get ripped off by this industry—and why I sometimes have to talk myself out of easy money to protect you from predators.
Last week, a woman I’ll call “Sarah” called my office in tears.
She owed the IRS $129,000. The monthly payment they wanted? $2,740.
“Carlos,” she said, “I’ve been quoted $2,500 by three different companies who all promised they could get this payment down to $500 or less. Should I hire you to negotiate a better deal?”
Here’s where most companies would take her money and string her along for months…
But I’m not most companies.
You see I have seenher financial records and running my detective analysis, I discovered something that made my stomach turn:
- Monthly income: Substantial
- Home equity: $660,000
- The IRS calculation: Actually correct
The brutal truth? Those other companies were about to take Sarah’s $2,500 and waste months chasing an impossible dream.
Here’s what I told her (and why it cost me a sale):
“Sarah, I have to be honest with you. Based on your financials, the IRS is being fair. With your income and that much equity, their guidelines support the $2,740 payment. But they’ve offered you a compromise: pay $42,000 down and drop your monthly to $1,365.”
She was quiet for a long moment.
“So you’re saying those other companies can’t help me?”
“I’m saying they’ll gladly take your money and fight a battle that can’t be won. The IRS doesn’t care about credit card debt or lifestyle expenses above their allowances. With your equity and income, you don’t qualify for hardship.”
Then I did something that shocked her:
“My recommendation? Accept their offer or get a HELOC against that equity. Don’t pay me or anyone else $2,500 to chase fantasies.”
Two days later, she emailed me:
“Thank you Carlos for getting back to me in a timely manner. I appreciate your honesty. I will move forward in paying them a Lump Sum in order to reduce our liability.”
I just talked myself out of $2,500.
The Detective’s Finding: A good tax resolution specialist will sometimes talk you OUT of hiring them. A scammer will always find a way to take your money.