Peter Stephan of the Tax Resolution Institute Helps Pasadena Tax Professionals Revitalize The Tax Resolution Industry

Over the past year, Peter Stephan of the Tax Resolution Institute has spoken over a dozen times to tax professional groups across Southern California. He has spoken several times to the CalCPA Pasadena Discussion Group as he tries to elevate the tax resolution industry to the standard of excellence that taxpayers deserve. Rather than making grand gestures, Peter Stephan is trying to help one tax professional at a time by leading seminars on how to perform tax resolution work with knowledge and professionalism.

Certified Public Accountant Stella Tsai, the Chair of the CalCPA Pasadena Discussion Group, expressed the group’s response to Peter’s efforts when she told Pasadena Now, “Peter Stephan’s hands-on knowledge and expertise keeps us current on the latest trends and developments in the area of tax resolution. He generously shares his expertise and knowledge base with his fellow tax professionals.”

Given the numerous scandals of the “pennies on the dollar” late night tax resolution scammers, Peter Stephan’s efforts are not surprising and are being well-received by his fellow tax professionals. As Peter Stephan explained, “After the recent recession, many Californians found themselves in unexpected tax trouble, both with the IRS and the California Franchise Tax Board. At the same time, our industry was plagued by scandals that truly hurt innocent American taxpayers. My goal is to restore people’s faith in the integrity of tax resolution services that work.”

The scandals shut down some of the biggest operators in the business, the late night advertisers offering “pennies on the dollar” tax relief deals. In 2011, the self-named “Tax Lady” Roni Deutch lost her license and closed her law firm after being sued by California for perpetuating a “heartless scheme” to swindle taxpayers. In 2012, TaxMasters was hit with $195 million in civil penalties by a Texas court while JK Harris went bankrupt and closed their doors forever. In 2013, the founders of American Tax Relief in Beverly Hills were forced to surrender $15 million in assets, including a Ferrari and diamond jewelry, and permanently prohibited from selling tax debt relief services by the Federal Trade Commission. It was the agency’s first but probably not the last such action against a tax resolution company.

Is it surprising that Americans lost faith in the tax resolution industry? Based in Woodland Hills with offices in San Diego and New York City, Peter Stephan has practiced tax resolution for over a quarter of a century. As the author of The Ultimate Guide To Tax Resolution, a textbook designed for tax professionals, Peter Stephan literally wrote the book on how to handle tax resolution cases in order to address the problems in the industry and truly help the clients.

As Peter Stephan told Pasadena Now, “After seeing the industry tarnished by these scandals, I knew it was time to take a stand. When it comes to dealing with the Internal Revenue Service and the California Franchise Tax Board, taxpayers need to be able to access professional help that reliably resolves their tax collection, tax audit and tax debt issues.”

The question is whether Peter Stephan’s mission actually proved successful when he came to Pasadena. After all, there have been no tax scandals specific to Pasadena and the majority of tax professionals in the city have excellent reputations. One such CPA is Ed Mofrad of Mofrad Financial Solutions. When asked his impression of Peter Stephan, Ed Mofrad said, “I attended Peter Stephan’s tax resolution seminar in Pasadena. The seminar deftly handled the topic of tax resolution and recent controversies. What struck me was the ease with which Peter spoke, and his words were filled with significance related to the topic.”

What is intriguing about what Peter Stephan is trying to accomplish is his lack of flag waving or grand gestures. Known as the Tax Guru in 2013 on KRLA’s The Morning Answer radio show, Peter Stephan did not use his on-air time to publicize any personal project or his own company. Instead, the time was used to provide valuable information about how to handle your tax problems, including tax collection and dischargeability of taxes in bankruptcy issues. He wanted to help people by removing the stigma left behind by the late night “pennies on the dollar” so-called tax resolution companies.

In the seminars he leads in Pasadena and across Southern California, Peter Stephan believes the tools provided will help tax professionals begin to remove the stigma left behind by all the late night scandals. Clearly, according to Ed Mofrad, an experienced Pasadena CPA, Peter was successful in communicating the realities of tax resolution services at the CalCPA Pasadena Discussion Group. Ed Mofrad described the impact of the seminars on his practice when he told Pasadena Now, “Tax resolution is one of the services we provide for our clients, and we attend many seminars (such as Peter’s) to stay up-to-date. I brought the printed materials and notes that I took from the meeting with Peter back to our office and – in turn – held my own conference for the benefit of our staff.”

Peter Stephan has taken his mission beyond local boundaries and offer it to tax professionals on a national basis. As a result, he has started a new subscription-based business service at taxresolutioninstitute.org that is exclusively for tax professionals. The goal of the site is to provide the tools, training, and ongoing support that tax professionals need to do the job right. Well beyond Pasadena and Southern California, Peter Stephan is carrying his message to the rest of the country to make sure that professionals in the tax resolution industry are legitimate, licensed and providing quality tax planning and tax resolution services.