HUMBLE, Texas – It was the first time the Pena family had sought professional help with their taxes. Normally, they would handle it themselves, but due to changes in their income that year, they decided to consult an expert.
According to the Pena’s, their initial attempt to file their taxes resulted in a staggering $30,000 owed to the IRS. Concerned by this amount, they sought a second opinion and were referred to Tax Doctors, LLC, a tax preparation service.
RELATED: ‘It’s been a mess’: Ghost tax preparer leaves Houston residents empty-handed
Tax Doctors, LLC offered various services, including tax filing, credit repair, cash advances, virtual tax services, and business consultations.
The Penas claimed that Tax Doctors, LLC assessed their taxes and informed them that they were entitled to a $20,000 refund. However, in order to file their taxes, they had to pay the company a hefty fee of $17,700. Reluctantly, the couple paid the amount, expecting a significant refund.
To their surprise, the IRS accepted their 2022 taxes without any issues. However, they later received two letters from the IRS regarding their 2021 filings, stating that certain lines on their forms were incomplete or missing.
The Penas made numerous attempts to contact Tax Doctors, LLC and its owners to rectify the problems. Frustrated by the lack of response, they decided to hire a different certified public accountant (CPA) to review their tax situation. The new CPA revealed that their actual tax liability was only $8,000, significantly less than what Tax Doctors, LLC had claimed. The CPA charged a reasonable fee of $300 for completing the filing.
Around this time, the Penas hired attorney Matthew Key who sent Tax Doctors, LLC a letter demanding the company stop “the normal retention and destruction policies for documents” and “preserve and retain” the following:
“(1) correspondence in any form between you and my clients;
“(2) correspondence in any form by, between, or among all officers, directors, owners, managers, and/or employees of Tax Doctors regarding my clients’ tax return; and
“(3) all files, folders, notes, memoranda, and any other writings, recordings, or other data regarding my client’s tax return and/or the Matter.”
The letter ends by demanding all be done by the end of 2023.
KPRC 2 Investigates: Here are 3 signs of a bad tax preparer
In response to the allegations, Tax Doctors, LLC’s attorneys, Timberly Davis and George Powell, stated that they could only file the information and documents provided by their clients. They emphasized that the responsibility for tax liability ultimately lies with the IRS.
Despite the controversy surrounding their tax filing, Heather Pena acknowledged that Tax Doctors, LLC had successfully filed her 2022 taxes.
Attorney George Powell expressed his willingness to facilitate the resolution of the matter between both parties.
The Penas are determined to recover any funds rightfully owed to them.
RELATED: What is a ‘ghost’ tax preparer and how to avoid them
