25 Sep BE AWARE OF IRS TAX SCAMS – Fresh Start Mills/ Offer in Compromise
None of us like to be scammed. Therefore, be aware of IRS Tax Scams.
There are many, but here is a general list of things to watch for:
- A big payday — if it sounds too good to be true, it probably is
- Threats or urgent requests to pay right now or else, or to pay in a specific way
- Misspellings and grammatical errors
- Links, attachments or odd URLs — all trusted IRS links go to irs.gov
One of the biggest scams is the ‘Offer in Compromise Mills’.
Their advertisements make it sound like getting a settlement with the IRS for taxes owed is very simple. It is not!
There are qualifications to meet, exhaustive financial disclosure IRS Forms to be filled out and filed with the IRS, and negotiating any possible settlement with IRS personnel.
IRS warns of ‘mills’ taking advantage of taxpayers with Offer in Compromise program.
The Internal Revenue Service reminds taxpayers to beware of promoters who claim their services are necessary to resolve unpaid taxes owed to the IRS while charging excessive fees, often with no results.
These unscrupulous “mills” use aggressive marketing to make false claims of guaranteed settlements for “pennies-on-the-dollar” or will say there’s a limited window of time to resolve tax debts through the IRS Offer in Compromise (OIC) program.
“Taxpayers should be cautious of aggressive marketing that can mislead them,” said IRS Commissioner Danny Werfel. “Many OIC mills charge steep fees, give false assurances, and can take advantage of taxpayers with empty promises that their tax debt will disappear. The result is often good money paid for bad results.”
An OIC is a legitimate IRS program that allows qualifying taxpayers to work with the IRS to settle a tax debt for less than the full amount owed. It is a possible option for those who cannot pay their full tax liability or if doing so creates a financial hardship. In determining eligibility, the IRS considers the taxpayer’s unique situation, income, and asset equity. The OIC agreement occurs directly between the taxpayer and the IRS.
Beware of empty promises and steep costs
OIC is a valuable program that helps taxpayers with their federal tax debts, and some companies offer legitimate services to help taxpayers file a request.
However, some OIC mills companies will heavily advertise their dubious promises to settle taxpayer debt at steep discounts.
OIC mills perennially appear on the IRS’ annual Dirty Dozen list of scams and schemes that put taxpayers and the tax professional community at risk of losing money, personal information, data, and more.
Calling an 800 number can be the start of getting caught up in the OIC Mill.
Work with a local firm that is part of the community and is motivating by helping taxpayers and not ripping them off.
Need tax help?
Give Nunn Better Tax Resolution a Call Today to schedule an appointment:
