CBS6 Albany

(CBS 6) — They're three letters that can strike fear into the hearts of Americans this time of year: IRS. So, what would you do if the IRS said you owed them thousands of dollars? A company out there promised to help a local man. But our I-Team discovered some people say it's not "helping" them.

Salesman: "J.K. Harris is the largest most successful tax resolution firm in the country....This is not a scam. We are here to help you."

She wore a hidden camera to her meeting with this J.K. Harris rep off Wolf Road in Colonie...where he touted the company's 475 offices across the country — and connection to the IRS.

Salesman: "If you go to the IRS web site and you hit "tax resolution" usually it will send you right to our web site."

Our I-Team discovered that's not true...and the IRS confirmed it for us. But that isn't the only lie customers say J.K. Harris is spreading.

Michael Voelker of Ballston Spa owed the IRS 3-thousand dollars in 1990....that mushroomed to 18-thousand when he didn't pay it.

Mike Voelker/Ballston Spa: "Having obviously the IRS on your back is a big albatross...they're relentless. They're huge."

So, he saw J.K. Harris' ad in the Wall Street Journal promising to reduce his debt to "pennies on the dollar."

Mike Voelker/Ballston Spa: "I was thinking maybe I've got a chance here...of getting this resolved and I can finally get this behind me."

Voelker gave them almost 5-thousand bucks...and was told his "personal representative" would stay in touch by phone. But the first year, he says his rep changed 4 times and nobody told him until he called.

Mike Voelker/Ballston Spa: "Very few calls were made by them to me...I had to initiate almost every contact."

Two years later...Voelker says all J.K. Harris has done is prepare three years of his back taxes on 1040s. And he couldn't work because the IRS put a tax levy on his boss — a levy J.K. Harris promised to get rid of.

Warren King/Better Business Bureau: "They've received close to 650 complaints in the past three years."

In fact the Charleston, South Carolina BBB...where the company's headquartered...met with J.K. Harris back in 2002 to discuss the problems. But the complaints keep pouring in.

Warren King/Better Business Bureau: "The complaints concern services not being performed according to the contract."

When our producer asked the local salesman about the complaints, he said most customers don't send their paperwork back in.

Salesman: "Yeah...yup...we do have a problem...in fact we're having a teleconference on Monday about that."

But a company spokesman talked to us over the phone from a South Carolina studio. He called the BBB's report outdated and wrong — and said 650 is not a lot of complaints.

Josh Baker/J.K. Harris: "Of 120 thousand clients we've served over the last seven years, if you have one percent of those people complain that's 12 hundred complaints."

J.K. Harris said Voelker's personal case worker has not changed in 20 out of the last 24 months — and it submitted 3 Offers in Compromise to the IRS on his behalf...but:

Josh Baker/J.K. Harris: "Mister Voelker has not been in compliance...he has not filed his tax returns. And he's not provided the IRS the information they've requested of him."

Voelker told us those are lies. And when we asked the company about its "pennies on the dollar" promise?

Josh Baker/J.K. Harris: "We have since stopped using the phrase because frankly, we feel like people misunderstood it."

We also asked about that supposed link on the IRS's official web site...and they admitted that's not true but said there is a link on this web site.

Josh Baker/J.K. Harris: "IRS.com is a commercial web site...and does link directly to J.K. Harris."

Josh Baker/J.K. Harris: "I apologize for that. I think it was just a matter of confusion on his end."

The company said it tries to satisfy all its customers and will continue to help Voelker. He got this letter saying his case was closed...until his attorney and our I-Team got involved. Now, it's reopened. But Voelker says the damage is done.

Mike Voelker/Ballston Spa: "I am very upset about this because it has affected my ability to make money...and it's having effects on my health."

J.K.Harris said it didn't take care of Voelker's tax levy because it was running out a few weeks later. Voelker says if that's so....why did the company still charge him 750 shown on this bill to take care of it? We just learned that J.K. Harris met with the South Carolina BBB and is responding to consumers' complaints so it now has a "satisfactory rating." It has also dropped a few of the complaints against the company.

The IRS has issued a warning about tax remediation companies! It says companies can charge excessive fees to file an "Offer in Compromise" with the IRS on your behalf. The IRS can compromise on the amount a taxpayer owes in these deals — but not all people meet the specific criteria. To find out what that is go to www.irs.gov.