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Killeen Tax Center
IR-2024-243, Sept. 19, 2024 (EXCERPTS)
WASHINGTON — The Internal Revenue Service reminds taxpayers to beware of promoters claiming their services are necessary to resolve unpaid taxes owed to the IRS while charging excessive fees, often with no results.
"Taxpayers should be cautious of aggressive marketing that can mislead them,” said IRS Commissioner Danny Werfel. “Many OIC mills charge steep fees, give false assurances and can take advantage of taxpayers with empty promises that their tax debt will disappear. The result is often good money paid for bad results.”
An OIC is a legitimate IRS program that allows qualifying taxpayers to work with the IRS to settle a tax debt for less than the full amount owed. It is a possible option for those who are unable to pay their full tax liability, or if doing so creates a financial hardship. In determining eligibility, the IRS considers the taxpayer’s unique situation, income and equity in assets. The OIC agreement occurs directly between the taxpayer and the IRS.
Beware of empty promises and steep costs
OIC is a valuable program that helps taxpayers with their federal tax debts, and some companies offer legitimate services to help taxpayers file a request. However, some companies running OIC mills will heavily advertise their dubious promises to settle taxpayer debt at steep discounts. They usually charge excessive fees for a service taxpayers could have obtained themselves directly from the IRS.
Learn more about an OIC
The IRS can help taxpayers pursue the Offer in Compromise program on their own, without the help of these unscrupulous OIC mills. IRS.gov is a good first stop for taxpayers facing a tax debt where they can learn more about the OIC program and whether they qualify. While not all taxpayers will meet the technical requirements for an OIC, learning if an individual qualifies is as easy as using the IRS's Offer in Compromise Pre-Qualifier tool. Individual taxpayers may also check their OIC eligibility via Individual Online Account.
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