Tax Debt Settlement Firm JK Harris In Liquidation

January 11, 2012 saw the end of the nationwide debt resolution and tax help service, J.K. Harris and Company. J.K. Harris has been operating for many years throughout the country as a tax relief service for individuals who owe back taxes.

The company has been the defendant in several lawsuits with pending payments, high customer dissatisfaction rates and countless outstanding debts forced the company to seek bankruptcy protection in October of 2011.

The bankruptcy filing was a last-minute effort to protect the company from being seized for conservatorship by the Texas State Attorney’s Office. However, failure to sell the business or find a way to pay off all of the debts caused the bankruptcy court to decide that the company must be liquidated and the secured creditors paid.

It is very unlikely that unsecured creditors, awardees in lawsuits against the company, or former employees that have outstanding payroll owed to them will see a penny of what they are owed. Most of the company’s assets were already seized by a New Jersey lender.

The Goose Creek, South Carolina company closed its last offices at the beginning of the year. It is unknown how many people nationwide have lost their employment directly from this liquidation. It is estimated that in the Goose Creek area alone 100 people lost their jobs in the new year.

The clients that were still using the service will find that they are empty handed with no refund possible, and a case with the IRS that is still pending. Most of these clients will have to hire an attorney at an additional cost to settle the tax issue with the IRS or face the Internal Revenue Service alone.

J.K. Harris and company charged clients several thousands of dollars to “represent” them to the IRS and apply for an “Offer in Compromise” for past due taxes. The company has had a class action lawsuit filed against them for knowingly accepting clients that would not meet the IRS guidelines for this program and charging them fees anyways.

 

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