-- A popular debt relief option is increasingly surrounded by misleading claims, leaving many taxpayers frustrated and misinformed, according to expert insights from two former IRS officials.
The Offer in Compromise (OIC) program allows taxpayers to settle their debt for less than the full amount. Success rates have declined sharply, leaving many taxpayers frustrated and confused about their options. According to the experts, that’s because of what the experts call "junk applications" filed by tax resolution firms using deceptive marketing to attract vulnerable clients.
Former IRS professionals Michael D. Sullivan and Peter Salinger point to recent IRS statistics showing that out of more than 33,000 Offer in Compromise applications filed last year, only about 7,200 were approved, roughly 21 percent. Based on their decades of experience, they caution that the low approval rate reflects how challenging the process can be for taxpayers who may not fully understand the program’s requirements.
"The process is being overwhelmed with applications that don’t meet the criteria," Sullivan stated. "Thousands of taxpayers are being misled into paying significant fees for a resolution they have no chance of qualifying for, leaving them in a worse position than when they started."
Taxpayers Often Misled By False Promises
The core of the problem, according to their insights, is the business model of tax resolution firms that charge large upfront retainers, often thousands of dollars, to file OIC applications regardless of the client's eligibility. The result is a flood of over 26,000 rejected applications annually. The surge in unqualified applications often leads to denials, leaving taxpayers out thousands of dollars.
The experts identify a familiar pattern of dubious claims whose main aim is to lure in the taxpayers. A typical red flag is the "pennies on the dollar" promise, which experts claim is a rare outcome of a strict formula by the federal government, not a promotional discount. Another tactic is the frequent reference to the "Fresh Start Program," which represents a special deal when the truth is that it is actually a long-standing IRS program. The authors also debunk fake claims of "insider access," clarifying the fact that the entitlement rules of this program are public, and a free eligibility tool exists online.
How Taxpayers Can Protect Themselves
Given the financial risks, the former agents emphasize that taxpayers must stay vigilant and proactive when they need assistance. Their insights provide specific guidance to avoid being taken in by the players in this industry. They also recommend working exclusively with licensed professionals, such as a CPA, attorney, or Enrolled Agent, and ensuring that one checks their credentials.
In addition, they recommend that taxpayers speak directly with the expert handling their case, and not just a salesperson, and ensure a thorough financial review is done to confirm eligibility before any money changes hands.
The complete insights and strategies are detailed in the authors' book, Exposing the Secrets for IRS Settlements. The experts conclude that while the OIC program remains a valid lifeline, consumers must be armed with the knowledge to bypass these predatory firms to achieve a successful outcome.
Contact Info:
Name: Michael Sullivan
Email: Send Email
Organization: MD Sullivan Tax Group
Website: http://sullivan4irsmatters.com
Release ID: 89167399
Google
RSS