How IRS expose Tax Lien Fraudsters?

              Some private investors, hedge funds and corporations found the treasure chest in property tax liens. States allow investors to charge 8-20% in interest charges for their troubles. But strange things had been reported by the homeowner  victims of tax lien investors.

 

     Some investors had been fighting tooth and nail to buy your 200-300$ tax lien.

As you might expect, interest income on such a lien is minuscule. Where is the money trail?
Well here is the loophole. Attorneys are allowed to charge "reasonable" attorney fees for their efforts to collect these funds. So some of these companies charge 1000% of the total face value. So your 300$ lien magically transforms to $3000 after attorneys do their magic.

 This does not pass the smell test.

Attorneys make fortunes charging crazy attorney fees on these liens. So I would like to know if these attorneys pay their income taxes on those fees. If these funds are really "reasonable", attorneys are expected to pay income taxes on this income. If these attorneys kick back some of their fees back to the investors, such fees are not really reasonable and attorneys committed fraud.
IRS is essential in exposing this fraud if such scheme exists.

Follow the money and you will find the truth. And the truth will set you free....  

I would highly recommend IRS start keep tabs on companies like "Tax Ease Liens, Kentucky Tax Lien fund and their attorneys, just to keep them honest.