Individuals with federal tax debts may seek an offer in compromise (OIC). This IRS program allows qualifying taxpayers to settle a debt for less than is owed, or pay over a longer period, if the IRS agrees. However, most OICs are rejected. In addition, the IRS wants the public to beware of OIC “mills” that make aggressive claims that they can settle tax debt for “pennies on the dollar.” They might also claim that time is limited to resolve a debt. IRS Commissioner Danny Werfel urges caution, stating, “Many OIC mills charge steep fees, give false assurances and can take advantage of taxpayers with empty promises that their tax debt will disappear.” Contact us with questions.
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