If you listen to certain radio stations or watch late night tv you probably have heard or seen the commercials, claiming that working with their company will allow you to pay the IRS pennies on the dollars for what you owe. Surprisingly this is not a complete scam. There is a program that the IRS has call Offer in Compromise – OIC which allows you to pay them less than what you owe in total.
These companies do not have a “special in” with the Service that allows them to have greater success with their OIC. A couple of years back I have heard that the IRS was accepting about 20% of all OIC’s. This does not seem to be an encouraging success rate, even as a batting average.
If you are considering the possibility of an OIC, there is now a prequalifier tool available.
I encourage anyone thinking about an OIC to go through the prequalifier before they sign up with any firm to represent them.
If you do or do not qualify for an OIC you need to get assistance either with a payment plan or an OIC ASAP. This is where your CPA or real tax preparer can assist you best.