On Jun 14, 2022 we posted IRS Warns Taxpayers Again to Avoid Companies Claiming They Can Settle Your Tax Debt "For Pennies on the Dollar" - Call Us to Speak With Real Experienced Tax Attorneys where we discussed that in its 2022 “Dirty Dozen” tax scams the IRS warned people to watch out for Offer in Compromise mills which contort the IRS program into something it’s not, misleading people with no chance of meeting the requirements while charging excessive fees, often thousands of dollars.
Taxpayers should be especially wary of promoters who claim they can obtain larger offer settlements than others or who make misleading promises that the IRS will accept an offer for a small percentage.
Companies Advertising On TV Or Radio
Frequently Can’t Do Anything For Taxpayers ...
Frequently Can’t Do Anything For Taxpayers ...
Now in IR-2023-63, dated March 30, 2023, the IRS again cautioned taxpayers with pending tax bills to contact the IRS directly and not go to unscrupulous tax companies that use local advertising and falsely claiming they can resolve unpaid taxes for pennies on the dollar.
IR-2023-63 goes on to state that "An Offer in Compromise "mill" will usually make outlandish claims, frequently in radio and TV ads, about how they can settle a person's tax debt for cheap. In reality, the promoter fees are often excessive...This takes unnecessary money out of the taxpayer's wallet."
For more information about Tax Relief Companies see the Federal Trade Commission web site detailing how Tax relief companies use the radio, television and the internet to advertise help for taxpayers in distress.
In reality, most taxpayers don't qualify for the programs these fraudsters hawk, their companies don't settle the tax debt, and in many cases don't even send the necessary paperwork to the IRS requesting participation in the programs that were mentioned. Adding insult to injury, some of these companies don't provide refunds, and leave people even further in debt.
The majority of tax settlement companies charge their clients an initial fee that can easily run anywhere between $3,000 to $6,000, depending on the size of the tax bill and proposed settlement. In most cases, this fee is completely nonrefundable. This fee quite often mysteriously mirrors the amount of free cash the client has available. This is generally the amount of cash the company says it will save the client in tax payments.
"No one can get a better deal for taxpayers, than they can usually get for themselves by working directly with the IRS to resolve their tax issues," said IRS Commissioner Chuck Rettig.
While we agree with the Commissioner that taxpayers should avoid tax fraudsters & OIC tax mills, who falsely promise to settle their debts for "Pennies on the Dollar"
Advising Taxpayers That'll Get The Best Deal By Dealing Directly With The IRS, Is Simply Not Supported By The Facts.
Hiring an Experienced Tax Attorneys, who knows all the different IRS alternatives for settling IRS debt, has always proven to be the best alternative for a taxpayer desiring to SOLVE their IRS debts!
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Read more at: Tax Times blog
