Dirty Dozen 2020: Offer in Compromise Mills

    The Dirty Dozen is a list that the Internal Revenue Service (IRS) publishes every year of the most common tax schemes and crimes that Taxpayers should be on the watch for. They peak during Tax Season, but are seen throughout the entire year. One entry on this year’s list has to do with debt resolution companies that heavily promote the Offer in Compromise (OIC) program. The fact that they advertise this program with very strict standards as something that can help anyone with tax problems is deceptive and therefore earns a place on the Dirty Dozen list.

    These companies will send OIC applications to the IRS. The advertisements will play to hearts of distressed who owe large debts, telling them that they will pay “pennies on the dollar”. The OIC program does allow those who are accepted to pay a compromised amount to the IRS. However, the IRS has many other payment programs that have a much higher likelihood of getting approval for. In one recent year, there were 54,000 OIC applications submitted. Only 18,000 were accepted. These companies prey on the desperate, and charge their fees regardless of what happens to their clients. If you choose to hire someone be very cautious in this area. Make sure you know all your options. We have written in detail about a variety of IRS payment programs, some you may not have heard of and that might fit your situation. Please click on these links to read those posts. Make sure that you are comfortable with and trust your Qualified Tax Professional.

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