Episode 15: What Are Offer Mills and Why Should You Steer Clear of Them

In this episode, I discuss offer mills, one of the IRS' dirty dozen tax scams. 

Did you know only 33% of all offers-in-compromise are accepted (offers are the IRS' debt settlement programs). Of 53,000 offers made in 2019, only 18,000 were accepted. If you listen to the radio and TV ads you'd think the IRS was settling cases left and right for "pennies on the dollar" Not true.

Offer mills are nothing more than snake oil salesmen who prey on desperate taxpayers. In this episode, I discuss what you should look out when talking with a tax resolution firm. Watch out for the warning signs!

• Do they ask you about your finances? Or do they just start in on how they can settle your debt?
• How much do they investigate your assets and income? Or do they just ask a couple of questions and let you know "They will get you something soon to sign."?
• Do they discuss your options once they investigate your situation and give you the pros and cons? Or do they just talk about all the money you'll save by filing the offer-in-compromise?

Be wary of promises that seem too good to be true. The IRS is not in the business of settling tax debts, it is in the business of collecting as much as possible from taxpayers. An offer will only be accepted if it is in the IRS' best interest, not yours!

I hope you enjoy this episode and let me know if you have any questions or show ideas.

IRS DIrty Dozen: https://www.irs.gov/newsroom/irs-unveils-dirty-dozen-list-of-tax-scams-for-2020-americans-urged-to-be-vigilant-to-these-threats-during-the-pandemic-and-its-aftermath 

IRS Prequalifier Tool: https://irs.treasury.gov/oic_pre_qualifier/

If you or someone you know has a tax problem, call our office at 207-502-7181 or email us at jwade@jdwadelaw.com. We will be glad to help you. Otherwise, please enjoy our content and let us know if there are topics you'd like us to discuss.