In watching the news, we have seen that Ronnie Deutsch had been charged criminally, Tax Masters Has filed Bankruptcy and other firms that promise IRS Offer in Compromise settlements for “Pennies on the Dollar” have been investigated by Regulatory Agencies.
These firms promise the world and often don’t deliver. We have heard many stories of clients who have paid these companies thousands of dollars and at the end were in worse shape than before they hired these companies.
How can Taxpayers protect themselves from these OIC scams, then?
First, check out the Better Business website. Reputable companies will have outstanding ratings with the BBB. They will not have scads of complaints.
Second, check for references. Often, websites will have testimonials that will give you a good indication of their integrity.
Third, beware of outlandish promises. Offers in Compromise are just not given out freely by the IRS. They will require that you prove that you do not have the ability to pay the taxes. They will require significant financial documentation.
Finally, beware of firms that are more interested in getting fees from you than solving your IRS Tax Problems.
Our firm prides ourselves on giving honest and candid advice. We often have to tell people that they simply don’t qualify for an Offer in Compromise. There are often other solutions to their problems, such as: non collectible status, installment agreements, bankruptcy and others.