Offer in Compromise Scams

DON’T FALL PREY TO OIC MILLS

Are you receiving mail from companies promising to fix your tax problems? Did the letter you received to notify you that the IRS has filed a Notice of Federal Tax Lien?

Beware because you may be the target of predatory debt relief firms (OIC Mills). In July 2020, the IRS included these OIC Mill operators in its annual Dirty Dozen list of tax scams. A few large tax resolution companies, JK Harris, Roni Deutsch, and Tax Masters, have been in the news in past years for the atrocious, often criminal treatment of their clients.

OIC Mills often target taxpayers by monitoring public records for tax lien information. Once a taxpayer is on their list, they send letters that are often misleading and warn of drastic consequences if you fail to contact an “800” phone number.

THE ODDS ARE AGAINST OIC ACCEPTANCE

Unfortunately, we have consulted with many potential clients who have paid thousands of dollars for either very disappointing results or no results at all. The clients have often been misled to believe that they can settle their tax debt for pennies on the dollar.

Offers in Compromise (OIC) are good options for the right situations, but many taxpayers’ OICs are rejected. In 2019, the Service accepted only about one out of every three OICs (17,890 of 54,225) that were submitted. Typically, taxpayers who have a very limited stream of income and no equity in assets have the best chance of being approved for an OIC.

THE OIC PROCESS

The OIC is an agreement between the taxpayer and the IRS to settle the taxpayer’s tax liability when the taxpayer cannot fully pay the liabilities through asset liquidation, personal loans, an installment agreement, or other methods for full satisfaction of the outstanding tax balance.

The Law Offices of Charles R. Frazier will guide you through the requirements necessary to qualify for an OIC. We advise taxpayers to ensure that they are in compliance with tax filing and required tax payment obligations.

We will advise you regarding your estimated reasonable collection potential (RCP) because the IRS won’t accept an OIC for any amount less than the taxpayer’s RCP. We can help you obtain and submit all documentation the IRS deems necessary to determine your ability to pay your outstanding tax liabilities. To determine if an Offer in Compromise is right for you, we review your financial information, including your current assets and future earning potential.

The IRS is only authorized to accept an OIC based on three grounds: (1) doubt as to liability; (2) doubt as to collectability; and a compromise based on (3) effective tax administration. We will analyze your specific tax circumstances and advise on whether you qualify for an OIC based on these grounds. However, we will not waste your time or money if we believe you will not be successful when seeking an OIC.

READY TO FIND OUT MORE?

Do not face the threat of falling prey to an OIC Mill. Turn to the Law Offices of Charles R. Frazier for an honest evaluation of your tax situation. We have the experience and know-how to help fix your tax problems. To schedule a low-cost consultation, call 615-810-0953 or contact us online.