Be careful who you trust with your tax problem. There are plenty of ads on radio and television from tax relief companies that might be alluring if you are struggling with tax debt. But beware of Offer Mills. Offer Mills are tax relief businesses that make false promises about settling your debt and misleading claims that they can stop the IRS from collecting past due taxes. Offer Mills are mainly interested in taking your money and do not actually provide the professional tax service that is required to successfully deal with the IRS.
Disreputable Offer Mills will not only fail to solve your problem they can actually make it worse. If you are looking for help with your tax problem, here are some warning signs that you might be dealing with an Offer Mill.
They make unrealistic promises. Offer Mills promise that they can reduce or eliminate your tax debts. Anyone that makes such a claim without a thorough review of your finances is not being honest with you about the process. These unfounded claims create unrealistic expectations to entice you to pay their fee. If you do qualify for an Offer-In-Compromise then you can pay less than what you owe. But you must qualify and you should be skeptical of any company that assures you that they can save you money if they have not thoroughly reviewed your finances.
They charge excessive fees Offer Mills charge excessive, up-front fees before any work is done to make sure that you qualify for an offer, and there is no guarantee that you will receive the level of service that is required to make a successful offer.
They lack expertise. When you hire a tax resolution company to help you with your tax problem make sure you know the people you are working with. You should expect that experienced tax professionals are in charge of your case and that they will take all of the proper steps to ensure that your offer is handled correctly. If you find that you talk to different people each time you call to discuss your case, then chances are you are dealing with an Offer Mill.
They do not solve your problem. There are many ways an offer can fail. One of the most common is the taxpayer’s failure to provide information that is requested during the offer process. Filing an offer is only the beginning of the process and the IRS will typically demand additional information as it reviews your ability to repay your debt. Make sure that you are hiring tax professionals that will stay on top of your offer and be responsive to the IRS when it is reviewing your finances. The failure to do so can result in the summary rejection of your offer, leaving you right where you started; minus the fees you paid the Offer Mill of course.
They might encourage you to be dishonest. Do not let anyone advise you to lie to the IRS in order to settle your tax debt. It’s not worth it, I promise. It can make your situation substantially worse and lead to notations in your file that make it harder to legitimately resolve your problem in the future.
If you are dealing with a tax problem and are considering seeking help, please be careful to avoid hiring Offer Mills. It's important to research any company thoroughly before engaging their services, checking for reviews, ask about the professional credentials of the people who will handle your case, and make sure that they will be there for you throughout the process. Be wary of false promises that are made without a careful review of your finances. If it sounds too good to be true, it probably is.