JK Harris To Pay Refunds In West Virginia

JK Harris, a South Carolina firm that advertises that it can help resolve debts owed to the Internal Revenue Service (IRS), has left a trail of consumer complaints in its wake for years. Now, consumers in West Virginia will get refunds

West Virginia Attorney General Darrell McGraw says he has reached a settlement with the firm that requires it to provide full refunds to consumers who hired the firm but received no tax relief. The refunds total just over $14,000.

“I was audited by IRS back 2007,” Usama, of Falls Church, Va., told ConsumerAffairs.com this week. “I consulted JK Harris to take care of it on my behalf. They promised that they will start immediately contacting the IRS and get the information and I shouldn't worry. One week passed and nothing happened. I contacted the IRS audit officer to ask if anyone called on my case and he replied 'no, not at all.'”

Not only that, Usama said the IRS case officer said that he could do himself what JK Harris would do.

“He advised me to get my money back from them ASAP,” he said.

Usama said he paid $1,400 but, after three years, has not received any of his money back.

Offer in compromise

McGraws office received a number of similar complaints, even after a 2008 consent order in which JK Harris agreed not to collect money without providing a service. Some consumers said they were told they qualified for an "Offer in Compromise" (OIC) only to later discover they did not.

Consumers who qualify for the OIC program have most of their tax liability waived and pay only a percentage of what they owe to the IRS. However, the IRS accepts less than 25 percent of the OIC applications it receives.

McGraw filed a petition for contempt on March 31 and says the resulting settlement will provide refunds to consumers.

"There are many tax settlement scams being advertised on late night television," McGraw warned. "It is always best to get an opinion from a local tax consultant before responding to these commercials."