The IRS recently unveiled its “Dirty Dozen” list of tax scams in 2020, and one of the items is a concern we encounter frequently: Offer-In-Compromise (OIC) mills. Some “tax relief” companies have misleading radio and television advertising campaigns that offer chances to settle tax debts for “pennies on the dollar”. While the ads give slick testimonials from individuals that have successfully lowered their tax debt, they do not mention that the OIC program offered by the IRS has very specific criteria, and that most taxpayers do not meet the legal requirements for this program. The sales teams for these OIC mills cast a wide net for unwary customers, charge them pricey fees, and churn out applications for a program they’re unlikely to qualify for.
The IRS has a free online Offer in Compromise Pre-Qualifier tool that taxpayers can use to see if they qualify for this program. The simple tool allows taxpayers to confirm eligibility and provides an estimated offer amount. Although taxpayers can apply for an OIC without third-party representation, we strongly recommend engaging a competent and experienced taxpayer defense firm such as the Willi Law Office, LLC. Please visit the Taxpayer Defense section of our web site for more information. The Willi Law Office, LLC has been providing personalized legal services to individuals and businesses in Westerville and Central Ohio for over 20 years.