A Free Public Service

SCAMS BULLETIN Host Jay White is an inactive attorney in San Mateo County, California.

April 19, 2022

TAX DEBT RELIEF SCAMMERS

Courtesy Scambusters

TAX DEBT RELIEF SCAMMERS MAY CHARGE $25,000 – FOR NOTHING!

Debt relief “mills” cheat people who owe money to the IRS:

The IRS operates a program called Offer in Compromise (OIC), which enables taxpayers to request a debt write-down, but the rules are strict, calling for evidence of inability to pay. Scammers take advantage of it to steal money.

Scammers claim they can use the OIC Office to have the IRS slash your tax debt to “pennies on the dollar”. But they want you to pay upfront for their so-called service–which more than likely won’t save you a dime.

The fake “OIC mills” often charge fees running to as much as $25,000 to help with debt forgiveness claims. They may simply complete and submit an OIC application form. Other times, they just run off with the money.

The result is that victims often end up in a worse financial situation — out both the fees they handed over to the crooks plus potentially worsening debt problems with the IRS.

HOW TO APPLY FOR TAX DEBT RELIEF

What can you do if you have a tax debt problem?

First, don’t respond to those solicitations with pledges about how much you can save. If you think you need professional guidance, speak to a trusted financial adviser.

In the first instance, you can check whether you might qualify for debt relief by completing an online questionnaire.

That checks things like whether you have filed all current tax returns and if you’re up to date with needed estimated payments (if you have to make them). It also asks questions about current debt and income. The aim is to eliminate applications that simply would not qualify.

There’s no OIC charge for this, but taxpayers who do prequalify have to pay a $205 application fee directly to the IRS, although this can be overridden for very low-income taxpayers. If an application is rejected, the fee is unlikely to be refunded but at least that’s the extent of your financial exposure.

If the IRS thinks you can afford to pay your tax debt, it may suggest an installment payment program. Again, you can agree to this directly with the IRS. No need to pay someone else to do this unless you think you can’t do it yourself. Even then, make sure you know what a professional will charge you before you go ahead.

Contact: www.IRS.gov or OIC for more information.