We have all heard the ads on the radio. People promising to get the IRS off your back,
Those promises to settle your IRS tax debts for pennies on the dollar are just that: Promises.
Firms that hawk these types of tax-debt relief plans are referred to by the IRS as “offer in compromise (OIC) mills.” These companies charge big up-front fees and churn out applications that most of their clients cannot qualify for, according to the IRS.
When you apply for an “OIC, you typically you need to use an IRS calculator to determine if you are eligible to attempt an “Offer” as a pre-qualifier. These mills do not use the calculator; they are after the upfront fees only. I am not even sure they will work out an ‘installment plan” with the service without another large upfront fee.
Best to use a tax professional or attempt to do it yourself before you think about using the “mills”.