Despite the IRS offering numerous tools to assist taxpayers with their tax woes, Offer in Compromise (OIC) “mills” are preying on individuals in tax debt by promising “pennies-on-the-dollar” settlements. The OIC program is in place to help taxpayers settle their tax debts with the IRS for less than they owe, due to financial hardship or an inability to pay. While this program is free, these “mills” charge steep rates for little, if any, results.
When seeking assistance with the OIC program, be cautious of individuals overpromising results, and contact a trusted tax professional. It is wise to speak with a tax attorney to ensure an OIC is the best way to resolve your tax liabilities because the 10-year time frame for the IRS to collect on your debt tolls (pauses) for however long the OIC is under consideration. Meaning, they can collect on your debt for longer, so it might not be the best solution for you.
To read more about the IRS’ warning, click here.
