Navigating tax debt can feel like an overwhelming, uphill battle. Programs like the IRS’s Offer in Compromise (OIC) can lighten the burden by offering qualified taxpayers a chance to settle their tax liabilities for less than the full amount owed.
However, this legitimate IRS tool has been overshadowed by scams known as “OIC mills.” These organizations prey on vulnerable taxpayers by making unrealistic promises of settling debts while charging exorbitant fees. They often deliver little or no results.
Rise of OIC Mills
The OIC program is designed for taxpayers who cannot pay their full tax liability or would face financial hardship by paying their tax debt. The IRS evaluates each OIC application based on the individual’s unique financial situation, including income, expenses, and asset equity. It’s a nuanced process that requires thorough documentation.
OIC mills rely on the complexity of the real OIC program to lure taxpayers. They advertise “guaranteed” settlements and claim taxpayers have an extremely limited window to pay tax debts. If you get contacted by or have seen an advertisement for a company making these kinds of claims, here are some signs that you know it’s fake:
- They guarantee specific results without a comprehensive review of your financial situation (the IRS evaluates each application thoroughly).
- They insist that you have to act immediately to get a “limited-time offer.”
- They charge hefty upfront fees without any clear deliverables.
Protect Yourself from Predatory OIC Mills
The most important thing you can do to avoid falling into an OIC mill’s clutches is to educate yourself and seek professional guidance. Use the IRS’s free resources, such as the OIC Pre-Qualifier Tool. You can also contact experienced tax consultants such as the Highland Tax Group. We’ll never pressure you into making a quick decision and always let you know what your options are concerning your tax debt. We pride ourselves on our transparency and support for our clients.
Our team is committed to guiding you through a legitimate solution to your tax debt. Contact Highland Tax Group today so we can discuss your situation.