Each year, the Internal Revenue Service releases a list of known scams and tax concerns for taxpayers to watch for.
Included on this list in 2024 is Offer in Compromise Mills.
In order to understand Offer in Compromise Mills are, and the dangers of working with one, it is important to know what an Offer in Compromise is.
What is an Offer in Compromise?
In short, an Offer in Compromise (OIC) allows taxpayers to settle tax debt with the Internal Revenue Service (IRS) for less than they owe. If a taxpayer cannot pay the full tax debt, this can be a legitimate option.
Obtaining an OIC is no simple feat. The IRS is going to do all in its power to ensure that you are unable to pay the full amount by requesting more than just bank statements.
To avoid mistreatment, harassment, and possible employee ignorance of IRS policies – it is best to call a tax professional when considering OIC options.
What are Offer in Compromise ‘Mills’ and How Do I Spot Them?
Offer in Compromise ‘Mills’ are shady setups that claim they can nearly eliminate a taxpayer’s debts. With over promotions and overpromising phrases such as “pennies on the dollar”, these companies are hardly legitimate.
Taxpayers who are in debt to the IRS easily fall victim to these scams, as tax troubles are often paired with anxieties and stress that make individuals easier prey.
One quick way to determine if advertised tax help is trustworthy is the use of flashy and ‘too good to be true’ catchphrases. The best way to solve tax issues is to avoid fishy schemes and speak to a qualified tax professional for advice and guidance on your matter.