Offer in Compromise is the tax debt reduction program that is much abused and misinterpreted. Fraudulent tax services use this IRS debt payment plan to dupe taxpayers into believing that their tax debt could be reduced without a pain. They sell dreams to taxpayers and extract thousands of dollars in fee. The truth is that the IRS does not qualify most taxpayers who apply for Offer in Compromise simply because most taxpayers do not qualify for it.
Popularly known as ‘pennies on the dollar’, Offer in Compromise has strict restrictions. Only taxpayers who cannot afford to pay the entire amount of tax debt can qualify for this debt reduction plan. The IRS takes into account income, assets and liabilities of taxpayers before deciding to qualify them for Offer in Compromise. Those taxpayers whose financial condition is such that they are only able to afford basic living needs such as food, shelter, clothing etc. are considered for Offer in Compromise.
Because tax debt reduction can tempt any taxpayer who has a tax debt, fraudulent tax companies use Offer in Compromise to get taxpayers to hire their services. To stay safe from scammers, taxpayers must never hire a tax service that promises to reduce their tax debt without knowing the particular of their case. All fraudulent tax services take a hefty upfront fee and may charge hidden fee.
To look for the right tax help is the first step towards successful resolution of tax debt. An authentic tax help can help taxpayers get matched with the most appropriate tax debt payment plan.