“If you fell down yesterday, stand up today.”
-H . G . Wells
Are you struggling with tax debt? You may have come across companies advertising quick, easy ways to help settle your tax bill with the IRS for pennies on the dollar. See why we think you should reach out to the IRS and avoid those OIC Mills at all costs!
What is an Offer in Compromise?
An Offer in Compromise (OIC) is a legitimate term and program used by the IRS to address situations where individual tax payers who have tax debt that exceeds their current ability to pay. Upon approval of their application qualifying taxpayers may be awarded a settlement of payments or a lump sum due to the IRS that is less than the full amount owed. Factors such as income, expenses, and asset equity are assessed to determine if a tax payer can be deemed unable to pay their liability and/or if doing so would result in a financial hardship. There are minimal IRS filing fees and the support of a lawyer, EA or CPA is encouraged to ensure that your filing is complete and compliant however they do not have control or authority over the results of a tax payers’ OIC.
How OIC Mills & Tax Debt Relief Predators Work
OIC mills will often promote their services through radio and TV ads, making false promises that mislead unsuspecting taxpayers to believe they they can erase their debts. In many cases, these companies charge exorbitant up front fees, promise results that might not be attainable, and fail to properly determine if a tax payer is even eligible to submit an OIC filing.
How to Protect Yourself and Others
Start with the source! The IRS has a FREE tool that if used properly can help tax payers determine for themselves if they are eligible to submit a claim for an OIC. Check the BBB and other agencies to confirm the reputation of companies that are offering “guarantees” and services seem too good to be true. Ask questions and approach with scepticism when communicating with a potential debt relief service provider and do not agree to pay anything more than a small deposit up front. If you are suspicious of a company or feel you have been taken advantage of the IRS has directory of offenders you can check as well as means to report incidences of fraud/abuse by a service provider.
IRS FREE Prequalifier: https://irs.treasury.gov/oic_pre_qualifier/.
Report Fraud & Abuse: https://www.irs.gov/dmaf/form/f14242.
NP Finance & Consulting has licensed staff that can help you navigate the offer in compromise process with the IRS. We do not make any guarantees of outcomes, how ever we do help tax payers file complete, compliant OIC applications that will enable them to be awarded a fair settlement by the IRS.
