IRS Tax Tip 2022-103, July 7, 2022<\/p>\n
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As the old saying goes: When something sounds too good to be true, it probably is. Taxpayers with outstanding tax bills might be tempted by businesses who advertise and offer to help them reduce their tax debt. These businesses, often called Offer in Compromise mills, make huge claims about reducing unpaid taxes for pennies on the dollar. Unfortunately, these companies sometimes don\u2019t deliver and charge large fees.<\/p>\n
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An Offer in Compromise with the IRS can help some taxpayers who can\u2019t pay their tax bill.<\/strong><\/p>\n An Offer in Compromise<\/a> is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed. The offer program gives eligible taxpayers a path toward paying off their debt when they otherwise couldn\u2019t or would face financial hardship.<\/p>\n <\/p>\n The OIC mills that are dishonest take advantage of taxpayers\u2019 lack of knowledge<\/strong> to make a quick buck.<\/strong><\/p>\n These OIC mills urge people to hire their company to file an OIC application, even though the taxpayer won’t qualify. They often charge big fees to prepare applications that they know the IRS will deny. This unfair practice wastes taxpayers\u2019 time and money.<\/p>\n <\/p>\n Taxpayers who do qualify for an OIC can get the same deal working directly with the IRS, without the extra fees.<\/p>\n <\/p>\n The OIC mills that are dishonest are a problem all year long, but they step up their advertising after the filing season ends, when taxpayers are trying to resolve their tax issues.<\/p>\n <\/p>\n Here\u2019s what taxpayers considering an OIC should know:<\/strong><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n Finding reputable tax help<\/strong><\/p>\n People who want help from a reputable tax profession can review Choosing a Tax Professional page<\/a>\u00a0on IRS.gov to find information about tax preparer credentials and qualifications. They can then use IRS Directory of Federal Tax Return Preparers\u00a0with Credentials and Select Qualifications<\/a> to find a preparer by type of credential or qualification.<\/p>\n <\/p>\n <\/p>\n More information:<\/strong><\/p>\n Offer in Compromise<\/a><\/p>\n Offer in Compromise Pre-Qualifier Tool<\/a><\/p>\n Offer in Compromise – IRS Video Portal<\/a><\/p>\n\n
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