Offer in Compromise, popularly known as ‘pennies on the dollar’ tops the charts of the most abused IRS tax debt payment plans. It is the attractiveness of the plan that has made it popular among tax services and taxpayers. Anybody who has back taxes to pay would like to get their tax debt reduced, and that is what fraudulent tax services use to dupe taxpayers.
Tax Debt Reduction and Fraud
Fraudulent tax services misinform taxpayers about Offer in Compromise to get them to hire their services. They promise substantial tax debt reduction, sometimes even to zero, to tempt taxpayers. To trap them into continuing using their service, they charge a hefty upfront fee. Many scam tax services also charge hidden fee.
Taxpayers must never hire a tax company that promises tax reduction without knowing the particulars of a case. They should never pay substantial upfront fee in exchange of services. Scam tax companies depend on the gullibility of taxpayers. Staying informed and cautious can help avoid scammers.
Truth about Tax Debt Reduction
Offer in Compromise is an IRS tax debt payment plan that reduces the tax debt amount of taxpayers who are unable to pay the entire amount of tax debt. Before qualifying taxpayers for Offer in Compromise, the IRS examines all the income sources, assets and liabilities of a taxpayer. It is only in cases where the financial condition of taxpayers is such that they are able to satisfy basic living needs that the IRS compromises and accepts whatever tax debt amount it can get.
For best resolution of a tax debt case, it is best to hire the service of a tax resolution company or a tax professional that has much experience and expertise in resolving cases of tax debt. Choosing the right help is the first step towards successful resolution of tax debt cases.