IRS Warns: Beware of "OIC Mills" that Promise Offer in Compromise for Everyone

Every day on the radio, tax debt companies shout with confident belligerence that anyone can resolve their tax debt for "pennies on the dollar." Sound too good to be true?

It is.

Introduction:

The IRS's has once again issued a stern warning about Offer in Compromise (OIC) 'mills'. You know who they are. If you don’t, they’re the companies you hear on the radio telling anyone and everyone who will listen that you too can reduce your tax debt to almost nothing through the OIC program.?

This type of marketing comes from the 800 pound tax debt industry gorillas and it's false advertising.?

Here’s what's interesting: amazing results utilizing the OIC program DO happen! I’ve negotiated some mind boggling reductions in debt. The results would make you stomp around the rest of the day grumbling about how no one pays their taxes except for you (or at least that's how my father would react).

But the reality is, very few people qualify for an OIC. Even so, the OIC mills sell taxpayers on the false promise of mind boggling results, even though, more often than not, you won't qualify.

This scam is important.

For anyone bogged down with IRS tax debt, understanding the real story of the Offer in Compromise is crucial to avoid being misled and set back even further financially.

The allure of a quick fix is tempting, and that’s why so many taxpayers fall for it but the reality involves deceptive practices and charging high fees for resolutions that don’t succeed.?

Discussion

In this article, I elaborate on four critical points about the IRS Offer in Compromise Program and the OIC mills that the IRS continues to warn about:

1. The Reality of OIC Mills
2. Understanding the True Offer in Compromise
3. Identifying Misleading Tactics
4. Seeking Legitimate Tax Resolution Services

1. The Reality of OIC Mills:

OIC mills?market themselves as a lifeline for overwhelmed taxpayers, claiming they can settle debts for “pennies on the dollar.”

And yet, that almost never happens.?

Of course, these mills never tell you that. They exploit your anxiety and charge exorbitant fees, all based on a lie they’ve fed to you from jump. When your OIC is rejected, they'll shrug and say, “We tried!” leaving you worse off than you were when you came to them in the first place.?

Nice.

2. Understanding the Reality of an Offer in Compromise:

Notwithstanding the OIC offer mills’ fraudulent playbook, the IRS Offer in Compromise program is totally legit. It’s designed to help taxpayers who genuinely cannot fulfill their tax obligations due to financial hardship.

However, qualifying for an OIC requires meeting strict criteria regarding your income, expenses, asset equity, and ability to pay.?

Some people do qualify and end up with a great deal, where they do in fact pay an amount far less than what they owe, but it's rare.

3. Identifying Misleading Tactics:

OIC mills’ expertise is not in resolving tax debts.

It’s in how to aggressively market by creating unrealistic expectations for potential buyers who are down on their luck and desperate.

I began my career in tax defense to provide an service for taxpayers where they are ACTUALLY helped.

What a concept.

In line with that concept, I've made a tireless effort to inform as many taxpayers as possible of the farce that these OIC mills are committing.

It’s never enough, unfortunately, because there are still taxpayer’s being duped out of their hard-earned money on a daily basis.

4. Seeking Legitimate Tax Resolution Services:

If you have tax debt, seek advice from qualified tax professionals who can offer an honest assessment of your circumstances with transparent practices. A recommendation from someone you trust is ideal.?

If you have an accountant who prepares your returns, start with them. They may know a tax professional in their circle who specializes in tax debt.?

If you don’t have that option, talk to tax professionals who are attorneys, CPAs or Enrolled Agents. Those are the only three types of tax professionals who can represent you against the IRS.

When you meet, make sure they provide an analysis of your case and your specific financial circumstances. That's the only way to get a truthful analysis of the IRS programs that you actually qualify for. One may be an Offer in Compromise! But probably not. And that’s ok.?

TL;DR:

OIC mills mislead taxpayers with fraudulent promises of significant reductions in their tax debt when they're actually just charging high fees for an outcome that's seldom successful. Instead, talk to a trusted tax professional who specializes in resolving tax debt and make sure to have them review your case in depth before they provide you with what you “definitely” qualify for.?

Call to Action:

If you’re struggling with tax debt, approach the situation with open eyes and a healthy dose of skepticism.

No legitimate tax professional will have a problem with that.

If they do, they aren’t the right representative for you, and they’re probably a fraud.

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Have one of these "OIC mills" scammed you or one of your clients?

Comment below: Let me know what happened and how the story ended!