On July 16, 2020 we posted IRS Identifies Debt Resolution Companies as Scams on 2020 Dirty Dozen List!, where we discussed that the IRS 2020 "Dirty Dozen" list of tax scams for 2020 included Offer in Compromise Mills and advises Americans to be vigilant to these threats.
Now five years later in IR-2025-26, the IRS 2025 "Dirty Dozen" list of tax scams STILL includes Offer in Compromise Mills!
These scams are commonly called OIC “mills,” which cast a wide net for taxpayers, charge them pricey fees and churn out applications for a program they’re unlikely to qualify for.
"Offer Mills" can aggressively promote Offers in Compromise in misleading ways to people who clearly don't meet the qualifications, frequently costing taxpayers thousands of dollars.
Although the OIC program helps thousands of taxpayers each year reduce their tax debt, not everyone qualifies for an OIC.
Individual taxpayers can use the free online Offer in Compromise Pre-Qualifier tool to see if they qualify. The simple tool allows taxpayers to confirm eligibility and provides an estimated offer amount.
Taxpayers can apply for an OIC without third-party representation; but the IRS reminds taxpayers that if they need help, they should be cautious about whom they hire.
Have a Real Tax Problem?
Read more at: Tax Times blog
