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IRS Issues Warning on Offer in Compromise Promoters

For years, we have warned you to be very careful when you hire a firm to prepare and submit an Offer in Compromise to settle your unpaid Federal taxes. It’s taken a long time, but the IRS has finally agreed and posted a warning you must read before you hire a tax resolution firm.

The Internal Revenue Service today issued a consumer alert advising taxpayers to beware of claims by promoters that tax debts can be settled for pennies on the dollar through the Offer in Compromise Program. Some promoters are inappropriately advising indebted taxpayers to file an Offer in Compromise (OIC) application with the IRS. This bad advice costs taxpayers money and time.

Check Carefully Before Applying For Offers in Compromise

Please remember to take the following steps BEFORE signing a contract or paying any money to a firm to handle your Offer:

1) Talk only with a LICENSED tax practitioner. If the company you are considering hiring won’t allow you to speak with an EA, CPA or attorney BEFORE you pay them, run as fast as you can to a legit tax pro;

2) Make certain that your licensed tax pro uses the IRS guidelines on allowable expenses and looks at your assets and liabilities. Without doing that, no one can assess your chances for a successful Offer;

3) Check around on the Internet. Sites like,,,, and many others have great information on bad tax firms;

4) Don’t believe it if it sounds too good to be true. I know, I know. You’ve heard this a thousand times, but you hear it often because it’s correct. Ask about the things that can go wrong with an Offer and ask what kind of success the company has had on its Offers;

5) Finally, use your own common sense. Stay away from slick sales people that have no license to protect when they screw up your case.

6) Take a look at the competitors we trust and those we believe you should avoid.

7) Read the Philosophy, How to Keep from Getting Ripped Off.

For good, clear information on the Offer in Compromise program, please read the two linked pages below:

Offer Article for NAEA