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Pennies on the dollar all right.

October 12, 2011

One of the late-night tax settlement outfits has found a way to make good on its "pennies on the dollars" pitch. The Charleston Post and Courier reports:

The JK Harris company once advertised that it could resolve people's tax debts for "pennies on the dollar," but now it could be the company's creditors and disgruntled former clients who will get less than they are owed.

JK Harris & Co. plans to seek bankruptcy protection in Charleston to head off an attempt by the Texas attorney general's office to force the company into receivership, said company founder John K. Harris. The company, a national tax-debt-resolution service based in Goose Creek, has been dogged by cash-flow problems and the cost of large settlements related to claims that it misled consumers.

No matter what you see on TV, it's not so easy to get out of tax debt. That's why it's wise not to get into it.

Via Robert D. Flach

UPDATE: Maybe pennies is a high estimate. From the comments:

The local newspaper included links to the JKH bankruptcy petition so I took a peek.

As a former IRS revenue officer I have reviewed countless bankruptcy files to try to determine if there was anything there. My take on this one is that only the attorneys are going to be paid and the consumers are going to get zero cents on the dollar.

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Comments

The local newspaper included links to the JKH bankruptcy petition so I took a peek.

As a former IRS revenue officer I have reviewed countless bankruptcy files to try to determine if there was anything there. My take on this one is that only the attorneys are going to be paid and the consumers are going to get zero cents on the dollar.

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