Accounting
IRS issues warning about Offer in Compromise ‘mills’
The Internal Revenue Service cautioned taxpayers to steer clear of promoters who claim their services are needed to handle unpaid debts, saying such businesses often charge excessive fees and often produce no results.
Like the so-called ERC “mills” that promote claims for the Employee Retention Credit, they use aggressive marketing, making false claims of guaranteed settlements for “pennies-on-the-dollar,” or saying there’s a limited window of time to resolve tax debts through the IRS
“Taxpayers should be cautious of aggressive marketing that can mislead them,” said IRS Commissioner Danny Werfel in a statement Thursday. “Many OIC mills charge steep fees, give false assurances and can take advantage of taxpayers with empty promises that their tax debt will disappear. The result is often good money paid for bad results.”
An Offer in Compromise legitimately allows qualifying taxpayers to work with the IRS to settle a tax debt for less than the full amount owed. It’s a possible option for those who are unable to pay their full tax liability, or if doing so creates a financial hardship. In determining eligibility, the IRS considers the taxpayer’s unique situation, income and equity in assets. The OIC agreement occurs directly between the taxpayer and the IRS.
The IRS acknowledged that some companies do offer legitimate services to help taxpayers file an OIC request. But some companies running OIC mills will heavily advertise their dubious promises to settle taxpayer debt at steep discounts. They usually charge excessive fees for a service taxpayers could have obtained themselves directly from the IRS.
The OIC promoters are not a new phenomenon. OIC mills make a perennial appearance on the IRS’ annual
The IRS has created a new
Gary Shapley, who was
The
Faulkender was confirmed last month as deputy secretary at the Treasury Department and formerly worked during the first Trump administration at the Treasury on the Paycheck Protection Program before leaving to teach finance at the University of Maryland.
Faulkender will be the fifth head of the IRS this year. Former IRS commissioner Danny Werfel departed in January,
Krause had planned to depart later this month under the deferred resignation program at the IRS, under which approximately 22,000 IRS employees have accepted the voluntary buyout offers. But Musk reportedly pushed to have Shapley installed on Tuesday, according to the Times, and he remained working in the commissioner’s office as recently as Friday morning. Meanwhile, plans are underway for further reductions in the IRS workforce of up to 40%, according to the
Certinia announces spring release; Intuit acquires tech and experts from fintech Deserve; Paystand launches feature to navigate tariffs; and other accounting tech news and updates.
Acting IRS commissioner reportedly replaced
‘He should bring them down’
Capital One and Discover merger approved by Federal Reserve
New 2023 K-1 instructions stir the CAMT pot for partnerships and corporations
The Essential Practice of Bank and Credit Card Statement Reconciliation
Are American progressives making themselves sad?
-
Personal Finance1 week agoStudent loan changes likely coming under Trump
-
Accounting1 week agoTrump’s tariff shift has markets, industry groups panicked
-
Personal Finance1 week agoSocial Security updates anti-fraud measures for benefit claims
-
Personal Finance1 week agoSocial Security COLA projected to be lower in 2026. Tariffs may change that
-
Economics1 week agoTrump’s triple-digit tariff essentially cuts off most trade with China, says economist
-
Economics1 week agoTrump’s tariff blitz faces strong legal challenges
-
Personal Finance1 week agoMajority of Americans are financially stressed from tariff turmoil: CNBC survey
-
Finance1 week agoStocks making the biggest moves midday: Frontier Group, JPMorgan, Apple, Stellantis, BlackRock and more