IRS 2023 Dirty Dozen- Scan #9: Watch out for Offer in Compromise ‘mills’ where promoters claim their services are needed to settle IRS debts (Part A)

IRS 2023 Dirty Dozen – Scam #9: Watch out for Offer in Compromise ‘mills’ where
promoters claim their services are needed to settle IRS debts (Part A)

IRS 2023 Dirty Dozen – Scam #9: Watch out for Offer in Compromise ‘mills’ where
promoters claim their services are needed to settle IRS debts (Part A)
As part of the annual  Dirty Dozen  tax scams series, the Internal Revenue Service is
warning about so-called Offer in Compromise “mills” that often mislead taxpayers into
believing they can settle a tax debt for pennies on the dollar.

The IRS continues to see instances of heavily advertised promises offering to settle
taxpayer debt at steep discounts. The IRS sees many situations where taxpayers don’t
meet the technical requirements for an offer, but they had to face excessive fees from
promoters for information they can easily obtain themselves.

Offer in Compromise mills highlight day nine of the Dirty Dozen series. Offers in
Compromise are an important program to help people who can’t pay to settle their federal
tax debts. But “mills” can aggressively promote Offers in Compromise in misleading
ways to people who clearly don’t meet the qualifications, frequently costing taxpayers
thousands of dollars.

A taxpayer can check their eligibility for free using the  IRS’s Offer in Compromise Pre-
Qualifier tool .

“Too often, we see some unscrupulous promoters mislead taxpayers into thinking they
can magically get rid of a tax debt,” said IRS Commissioner Danny Werfel. “This is a
legitimate IRS program, but there are specific requirements for people to qualify. People
desperate for help can make a costly mistake if they clearly don’t qualify for the program.
Before using an aggressive promoter, we encourage people to review readily available
IRS resources to help resolve a tax debt on their own without facing hefty fees.”

The Dirty Dozen is an annual IRS list of 12 scams and schemes that put taxpayers and the
tax professional community at risk of losing money, personal data and more. Some items
on the list are new and some make a return visit. While the list is not a legal document or
a formal listing of agency enforcement priorities, it is intended to alert taxpayers,
businesses and tax preparers about scams at large.

Working together as the Security Summit, the IRS, state tax agencies and the nation’s tax
industry have taken numerous steps to warn people about common scams and schemes
during tax season and beyond. The  Security Summit initiative  is committed to protecting
taxpayers, businesses and the tax system from scammers and identity thieves.

Next week #9: Watch out for Offer in Compromise ‘mills’ where promoters claim their
services are needed to settle IRS debts (Part B)
(IRS Web Site (TTT 092623)