IRS Issues Warning
on Offer in Compromise Promoters
For years, we have warned you to be very
careful when you hire a firm to prepare and submit an Offer in Compromise to
settle your unpaid Federal taxes. It's taken a long time, but the IRS has
finally agreed and posted a warning you must read before you hire a tax
resolution firm.
The Internal Revenue Service today issued a consumer alert advising
taxpayers to beware of claims by promoters that tax debts can be settled for
pennies on the dollar through the Offer in Compromise Program. Some promoters
are inappropriately advising indebted taxpayers to file an Offer in Compromise (OIC)
application with the IRS. This bad advice costs taxpayers money and time.
Check Carefully Before Applying For Offers in Compromise
Please remember to take the following steps
BEFORE signing a contract or paying any money to a firm to handle your Offer:
1) Talk only with a LICENSED tax practitioner.
If the company you are considering hiring won't allow you to speak with an EA,
CPA or attorney BEFORE you pay them, run as fast as you can to a legit tax pro;
2) Make certain that your licensed tax pro
uses the IRS guidelines on allowable expenses and looks at your assets and
liabilities. Without doing that, no one can assess your chances for a successful
Offer;
3) Check around on the Internet. Sites like
Complaints.com,
BadDealings.com,
Troubleshooter.com,
RipOffReport.com,
TheComplaintStation.com and many
others have great information on bad tax firms;
4) Don't believe it if it sounds too good to
be true. I know, I know. You've heard this a thousand times, but you hear it
often because it's correct. Ask about the things that can go wrong with an Offer
and ask what kind of success the company has had on its Offers;
5) Finally, use your own common sense. Stay
away from slick sales people that have no license to protect when they screw up
your case.
6) Take a look at the
competitors we trust and those
we believe you should avoid.
7) Read the eTaxes.com Philosophy,
How to Keep from Getting Ripped Off.
For good, clear information on the Offer in
Compromise program, please read the two linked pages below:
Offer Article
for NAEA
Here is a question we
would like you to ask the Internal Revenue Service if you were a client of
American Tax Relief. The IRS was aware for the past five years that American Tax
Relief was defrauding taxpayers and yet the IRS did absolutely nothing to stop
them. Why did it take the Federal Trade Commission to shut down their operation?
