Cancelling The Tax Club

by Tony Steward on March 31, 2008

I started a business last year and was trying to find a good solution for my business taxes, I found www.thetaxclub.com as a referal from legalzoom.com as I setup my LLC. Legalzoom is totally legit - unfortunately thetaxclub - well, read for yourself below, I just sent this in today.

Please cancel my Tax Club account for the following reasons:

I haven’t seen anything that even comes remotely close to the value of what I’ve paid for this service at any point.

Every “call” or “meeting” I’ve had has only been to sell me more of your services, never to truly explain, help or do anything related to my taxes.

The only stuff that has gotten done is stuff that I’ve had to do - not the point of me paying you to do it.

I didn’t sign up with this service to fill out more tax software, I can spend $80 once a year and get BETTER software than your lame tool. (I spent over $1,000 for the tax club.)

Please cancel my account immediately and stop scamming people.
Sincerely,

Tony Steward

[UPDATE] I’ve closed the comments on this post, as much as I had a bad experience, I don’t want my blog to become the focal point in the Tax Club’s eye. My blog isn’t really about “that conversation”. So, I will leave it live, and the comments will stand as is - but you will need to look elsewhere to carry on this conversation.

{ 16 comments }

1 Tony Steward 03.31.08 at 3:55 pm: Wow - the fastest response I’ve ever gotten from the Tax Club was their cancellation email…

nice guys…
2 Debbie 04.21.08 at 7:20 am: I have been trying to cancel for over a year - they keep refunding part of the money -

they did my taxes this year - at the last minute - after I got everything they required done on time - your right - their tool is a joke - and my taxes are still not filed because they never told me where to fax back the signature documents and nobody is taking my calls!

I am so pissed I don’t know where to start right now!
3 Tony Steward 04.21.08 at 7:48 am: Well - they cancelled but I didn’t get/ask for a refund. The contract I signed was pretty clear on the time frame I had to cancel - and it seems the only work they’ve done is on their legal contracts for new clients.

I hope people find this post who are thinking of using them - and if there are people out there who have had a positive experience then please let us know. But I’ve had several private conversations and then Debbie’s comment above that all point to the Tax Club being a complete sham.
4 Bobby 04.24.08 at 8:18 am: Thanks for the info. I am researching them right now. I got a call after working with Legalzoom. They had that cold call pushy feel to setup a time to talk with a consultant. I spoke with the consultant yesterday. He was ready to sign the deal I told him it all sounded fine but would need to dig into the company before I threw $1,200 over to them. He said I would have an email in 5 to 10 minutes with info on the company.

Nothing yet. Have read lots about them so I decided to give it a shot and call them as a current customer. go figure I got a voicemail with no operator available after that.

I will stay away. This would have been a nice service if it were true.
5 BryanR 04.28.08 at 10:40 pm: Glad I found your blog. All of the comments here are very helpful.
I found a classified where they were recruiting sales people. I’m a CPA looking to become self-employed so the Tax Club sounded very interesting. I certainly don’t want to work with any company that overpromises and underdelivers. Also, I hate the “hard sell” being used on me so I certainly wouldn’t want to be expected to use it on anybody else.
6 Carol F. 09.15.08 at 11:56 pm: I signed up with the Tax Club on Sept 9, 2008. After reading everything they emailed me I decided they were not for me. So I cancelled on Sept 11, 2008 by phone like they said I could do. Then I call my visa company and found out there were 4 charges to my account. On the 9th for $2,995.00. On the 10th $895.00. Again on the 10th $895.00. Then again $1,195.00.

On 9/11/08 I received a email that they were shipping me something. I made a 2nd call and told them to stop the delivery I would not take it. I had already cancel about 2 hour before. I was told I would receive a email confirming I had cancelled. On 9/15/08 at 10:00 am I call again and told them I hadn’t received any emails on the cancellation. I was told they were working on it. Then I received two emails stating that there would be a refund of $895.00 on my credit card. The second email stated another refund of $895.00 on my credit card. I have call the credit card company to see if it was there. They told me it takes 7 to 10 days to show. Then after that I received a email about the account being closed. Then another email saying the wouldn’t refund $1,195.00 due to they gave me service to get a EIN Number from the IRS which you can do for free on line. After that I received a refund authorization form stating they were only going to give me $1,150.75 back.

There contract reads : If cancellation occurs during the three day right to rescind period, the client will receive a full refund with 7 days of the cancellation date.

The games are starting because now they are using the 2nd part of there contract. If cancellation occurs after the 3 day right to resciend period and is with 30 days from the initial transaction date, the client is subject to a 15% processing fee. The 15% processing fee and the retail price of services rendered will be deducted from the initial payment and can not be waive.

Also they did not send me the cancellation email until the 15th. So again they are trying to use the 15th as the cancellation date. I have already called my attorney.

I have not signed anything. I have also emailed them about this matter. We will see what happens. If not I will let my attorney take over and go after them. I am a honest person trying to build a small business . Now instead of working my business all I am doing is trying to get my money back. Do not do business with them. I can’t even answer little questions about taxes. Go to someone in you area who you can sit down with and talk to face to face.
7 Carol F. 09.17.08 at 4:42 pm: Wanted to give everyone a update on this. 9/ 17/08

After seeing my laywer he has discovered that there contact is not legal at all. That there company provided services in California where a licenses is required and they do not have one. He also checked to see if there business are legally qualified to sell legal and accounting services in California, and discovered that neither Ted Johnson or The Tax Club company are qualified to do business in California through the California Secretary of State’s office. The deals fail to comply with California Law.

We are contacting the California’s Attorney General’s Office about this matter. Plus I have already reported them to the FDC. We are also sueing. If anyone else has had problems. Please call your lawyer’s right away. This is a big big scam and only we can stop them. Don’t lose your money . Fight Back we work to hard for it.

Also everything they did we have had to correct all was done wrong. Plus work with the IRS removing corp numbers that I didn’t need, plus others. What a mess they have made. I only needed my SS number.
8 Nicole 09.17.08 at 11:12 pm: WOW I am so scared! I signed up with The Tax Club today, I cant believe I was so stupid not to check them out on BBB before I gave them my credit card! 64 complaints in the past year! I am going to try and get a refund tomorrow but after all I have heard I dont think it will be easy! Carol F. I also live in California. If you wouldn’t mind would you be willing to share your lawyers info?
9 Dena H 09.18.08 at 1:48 pm: I am glad I decided to look on the web for complaints. I was suppose to pay for my contract today. It sounds really good but, no thanks. I hope each and everyone of you, get your money back. Thanks for the heads up..
10 Carol F. 09.19.08 at 8:56 am: More interesting fact I have found out. Yesterday I received an email from Amy who is a staff member of the Rip-off Report. The are in Tempe, Arizona. She stated that they totally understand my frustration and they are participating in the CAP- Corporate Advacacy Business Remediation and Customer Satisfaction Program.

Interesting I thing. The Tax Club claims to be in the Empire State Building . My guess they own a mail box which they call a suite. The first phone call I received they were calling from Utah. (Red Flag). The owner of the company Ted Johnson lives in Phoenix AZ , St. George Utah, Brian Head, Utah. ( Red Flag)
My first phone call. They claimed that Donald Trump was one of their clients. They may have someone named Donald Trump but believe me it is not The Donald Trump you hear about in the New. He has his own staff on board. ( Red Flag)

They tell you in the first phone call your are being taped. Every inch of the way it is stated you have 3 days to cancel. If you keep agreeing with them that is when you talk to lady who begins getting you EIN # The first one is encluded in there business package at that if you need more the charge $1,195.00 each. ( the site to get them with the IRS is free it does it for you).

When you first sign up you will get many changes which is designed to confuss most people from each department. I received 4 . But on each of the recipts again you will see the clause if you cancel within 3 day. Also the clause if you cancel after 3 day. Once you cancel within the 3 days. They will tell they only have a 30 day policy for cancelling the contract.

They will send you the contact in email form the first day. The contact is nothing but red flags. Do not sign it or send it back. They do not have a written contract with me at all.

I wish I had check these people out before. I have never seen so many complaint on any one company before. I don’t know what the others have come across . But it appears to me they are just after your money. Everytime I have call the same girl answers the phone and puts you on hold ( red flag) . She makes you wait between 15 to 25 mins each call. ( red flag). This is so you will hang up and give up. Then when you get to the department you want no one seems to be able to answer any questions ( interesting) so then you ask for the manager . She tells you they only have a 3o day cancellation policy. So you read them the contract. She then so state I don’t understand the contact. I tell her that is funny i just read it to her word for word. She tell me I need to fax them the contact because she doesn’t have any idea what I am talking about. ( is this due to they have many contracts that say different things? or they have no idea of what they are doing?)

Why would you want them to do you taxes a very scairy thought. Plus remember we just got in the door. WOW
11 Tony Steward 09.19.08 at 9:41 am: WOW - well I am encouraged that I was not the only one to have a bad experience. But it is saddening at the same time. Great info here guys!
12 Carol F. 09.25.08 at 1:43 pm: Up to date

To double check my lawyers finding about the TAX CLUB not being licensed in the State of California. I went into the California Secretary of State’s website. Under corporations. I only found 3 listings American Tax Club which was suspended date 5/20/1971. San Franciso Tax Club active date 11/29/07 and the Tax Reduction Club, Inc. suspended 2/3/1932. No other listings.

Under the LP/LLC listings nothing found.

So then I called the Business programs division regional office in San Francisco. The information he gave me was very interesting. The only listing was The Tax Club of America which was out of New Jersey. It changed names on 7/28/1988 to James Burg Company Inc.

Then it merged on 12/29/2000 to James Burg Company’s Inc. A California Corp. They went out of business and the State of California suspended their license on 1/12/2004 and finalized on 2/4/2004. This company is not licensed in the State of California. There is no other listing at all for The Tax Club. He also told me he was sure it was the same people.

So then I went into the Alameda County fictitious business name records to see if I could find The Tax Club no records were found. Also no records under The Tax Club of America.

I find this interesting due to I received a package from New Jersey with tax stuff inside that I refused and set back with the carrier on 9/23/08.

After going into the New Jersey Secretry of State’s web site. I have also found there are no license’s for The Tax Club or The Tax Club of America. I have also checked for Ted Johnson and James Burg nothing.

So then I went into the New York Secretary of State’s web site and again have found nothing. It sure does seem to me that they are not licensed anywhere. The reason I have done this is i wanted to make very sure they don’t have a license and it sure seems to me they don’t.

I have also had a Luiz Diaz for The Tax Club contact me. He email me the same recipt that was on all of my transations. Then again told me that isn’t what he has . I have faxed to him the same email he sent to me. He told me they only have a 30 cancellation and they now keep 30%. He wants to finish this by Friday. I don’t think so.

I have recieved though back from them $1,790.00 this was for the one year of tax service.

I will be filling on Monday in small claims court for the rest of my money back . Because I know they aren’t going to give it to me. To many games. Then I will march on to the California Secretary of State’s office and file but I have to go to small claims first and win this case. We also will be filing with the District Attorney’s Office in Alameda County.

I am doing this for all of us. I am so tired of people being ripped off it just isn’t funny anymore. Everyone wish me well I have to win this. I may not get anything but this is a fight to stop crime.
13 Cassie 09.30.08 at 4:30 pm: Well, If it sounds too good to be true….it probably is! This “CPA” just sounded way to consoling in that I just established my LLC like 3 days ago, and this guy from tax club told me he had to get it legal paperwork asap since the quarterly tax was due. He may be an accountant indeed but I respected his advice and knowledge all throughout our ‘30 minute FREE consultation’ UNTIL he made an appointment with me 2 weeks from today….and I ask him his name, number and what is the company again… and he laughed….and said are you serious…. (pause) and said really?! ……(pause) …..Tax Club, the Tax club. Now that pause puts me into perspective about who I’m really dealing with. If my “CPA” has to sell me a membership that costs $1,500 but wait he can still service me if I pay $748 now with onlly $20 month…. but he sounds too embarassed to even admit who he works for…THE TAX CLUB. Sounds like a scam, smells like a scam…and if it is they should be ashamed….

Thanks the the other opinions and experiences, you all helped me decide what was best for my business.
14 Nicole 10.01.08 at 2:35 pm: Just an update, I contacted tax club the next day and demanded a refund due to their negative report on BBB and all of the negative comments on the internet. They said they would get back to me within 48 BUSINESS hours (instead of 48 hours so it could take over a week to hear from them.) Thanks to Carol F.’s comment above I knew that they may drag the cancellation process out so they can get past the 3 day cancellation period and therefore would be able to charge me 25% processing fee ($375 for doing nothing). I demanded that they send me an email with the date that I initiated the cancellation so that they cannot claim that I was past my 3 day grace period, which she begrudgingly complied. Later that day I got a call from the guy who had initially sold me the membership trying to convince me that all of the complaints were from people who come to them two days before taxes are due and they are not able to help them. He also tried to say that the number of complaints at the BBB is normal for a company that size, and compared it to Legal Zoom which also has a large number of complaints. I know that a large company will have a significant amount of complaints but the BBB report says that The Tax Club is in poor standing with the BBB since they have not done anything to rectify the complaints, and Legal Zoom is in very good standing with the BBB because they resolved a mojority of the complaints.

Anyway I finally got my notice of cancellation and a FULL refund. So the advice I can give to anyone in the same situation, hopefully you are able to cancel within the 3 day period and make sure you demand something saying the date that your initiated your cancellation.
15 Jennifer 10.04.08 at 12:30 am: The Tax Club conned me out of $6,000. The Tax Club has half a dozen different names, including Manhattan Professional Group (www.mpgnyc.com), Vital Payroll (www.vitalpayroll.com), All Access Bookkeeping(www.allaccessbooks.com), My Essential Planning (www.myessentialplans.com), Business Document Center (www.thebusinessdocumentcenter.com) and Ikongo (www.Ikongo.com). The only thing they are good at is selling you products you don’t need. When I was talking to my original “business advisor” Bert Seither, he assured me that there was only a one time fee for all of their services. One by one, I would get a call for all of their services. I called back and asked to speak with Bert’s manager and was told his managers name was Brendon Pack and that he was not available. When I asked to speak to Brendons manager I was told it was Michael Savage but he was not available either. Looks like no one wants to take responsibility for lack of service. The bottom line is that they don’t care about you or about your business. They take your money and run. I’m surprised these people are still allowed to carry on with this shady business. I wish I took the time to research this company before I spent my savings on them. Instead of spending money on my business, I’ve been paying The Tax Club for services which were never rendered. The owner of the company is Tedd Johnson and he should be ashamed of himself for taking advantage of hardworking people. Carol F., let us know how your case goes!
16 Joan I 11.30.08 at 1:56 am: Carol, I too have been scammed by the Tax Club. I disputed the $2995.00 charge with my credit card company and they have denied the dispute claiming that the Tax Club claimed that I received services from them. How do we stop these thieves? I am going to send copies of these emails to my credit card company and see what they have to say about this now. Good luck to you and keep us informed.

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