Continuing its “Dirty Dozen” scams list, the IRS cautions taxpayers with pending tax bills to avoid offer in compromise (OIC) “mills” that falsely claim to resolve unpaid taxes for cheap.
These unscrupulous tax companies use local advertising to falsely claim they can resolve unpaid taxes for pennies on the dollar, the IRS said.
OIC mills are a yearlong problem but more prominent right after the filing season is over. Taxpayers who are trying to resolve their tax issues may fall victim to these companies.
“The reality is that taxpayers pay the OIC mill a fee to get the same deal they could have gotten on their own by working directly with the IRS,” the agency stated.