Blue Tax is a full-service tax consultancy firm based in Canoga Park, California. The company was launched in 2009, has nearly 100 employees, and is an accredit BBB business with an A+ rating. Blue Tax provides a wide variety of professional services, such as bookkeeping, payroll and estate taxes, but it specializes in tax debt and tax audit mediation.
What Services does Blue Tax Offer?
Blue Tax employs tax attorneys, CPAs, and enrolled agents. It is able to offer the full spectrum of tax preparation, tax debt negotiation and tax audit services. Their CPAs can help prepare and file your taxes. Their enrolled agents, who used to work for the IRS and are experts at interpreting the tax code, can provide tax attorneys with the information they need to negotiate with the IRS. Blue Tax specializes in dealing with un-filed tax returns, wage garnishments, levies, audits and payroll taxes.
How Does Blue Tax Work?
Blue Tax offers clients a free consultation to determine whether tax debt mitigation is an option. It only accepts customers with a minimum of $10,000 in tax debt. Customers can either fill in an online application form or call its toll-free number. Qualified customers first provide detailed information on their tax situation to a team of enrolled agents and CPAs. If necessary, CPAs can file or amend returns while enrolled agents work closely with tax attorneys to negotiate terms with the IRS.
What Negotiation Options Does Blue Tax Explore?
Blue Tax does not provide a list of the negotiation options they explore. However, they claim to look at all potential solutions to their clients' tax issues. Their website focuses on the three grounds to request an offer in compromise: inability to pay, doubt as to liability and special circumstances.
What is Blue Tax's Fee Schedule?
Blue Tax does not publish a fee schedule. Its fees depend on the size and difficulty of each case. Their prices are not cheap, though. We were quoted a flat rate of $6,400 for a tax liability of $50,000 and customer reviews indicate fees can be as high as $8,500. Blue Tax requires customers to pay at least half of their fees for them to start working on a case. The balance must then be paid within the next 30 days.
Which States Does Blue Tax Operate In?
Authority Tax Services claims to operate in all 50 states.
How is Blue Tax Better/Worse Than Other Tax Relief Companies?
Blue Tax is a medium-sized company with over 6 years' experience in the business that employs tax attorneys, enrolled agents, and CPAs. It is accredited and has an A+ rating with the BBB.
However, its prices are on the high end. It doesn't have a refund policy and it doesn't provide the option of paying fees in installments. It's also worth noting that its commercials are wildly optimistic, to say the least. They include amazing claims like “remove bank levies and wage garnishments fast,” “stop all collection activity immediately” and sample tax debt deductions of $20,000 to $1,600 that may give the impression all clients can expect those results.