Internal Revenue Service-Offers in Compromise Truth or Scam?

There are many people who believe that there are many ways to get away with not paying their fair share of taxes.

When confronted with tax liens that affect their credit and financial situation. And, garnishments of salary and other income. Or, seizure of their business and personal assets. Then, seeking alternatives can be costly.

Truth, there is an offer in compromise program (Fresh Start). But, there are requirements to qualify. Do not believe Commercials that indicate you pay only pennies on a dollar you owe. Or, that they guarantee you qualify. Watch out for scams.

Truth is that an offer in compromise can be accepted if your financial statements prove you can only pay the amount that you submit on your application. And, or that the future potential collection over the time period left on the collection statutes is the same amount as your total equity in assets plus any net difference between your gross income and necessary living expenses.

In addition, your age, health condition and prospects of future earnings play a significant factor in whether or not an offer in compromise is acceptable. Therefore, there are many factors that come into consideration when an offer is submitted for acceptance consideration by the Internal Revenue Service.

People have been scammed by unscrupulous tax firms that make promises of helping people to secure offers in compromise and other tax relief or resolution alternatives to their tax issues. Many companies have been forced out of business by State Attorney General court actions successfully won against national advertisers of tax relief firms that are no longer operating.

However, many more have opened and are utilizing similar advertising and promises that are in business to scam people out of their hard earned money. Not only do these people face tax debts, audits and most likely face economic hardship. They have to come up with money to get a tax consultant who knows how to negotiate and represent them with their tax problems.

How do you find a tax professional who will not scam you? Tax Attorneys are licensed professionals that normally do not scam people to represent them before tax courts. Certified Public Accountants may represent only with audit issues and not tax debt problems. Find one that has the expertise with the service that you seek. Enrolled Agents are licensed by the Internal Revenue Service to represent you with tax agencies in audits, tax debts, prepare tax returns and other services.

Nonetheless, interview them to seek the person who best suits your needs. Look at their websites, testimonials, professional web pages such as Linkedin, Facebook, and of course word of mouth referrals from people you know.

I would not seek professionals in any field unless they are willing to be interviewed, provide an initial consultation for me to confirm a potential working relationship, read and analyze their service contract, terms, fees etc.

Scams are preventable to a certain extent. Use your judgement and by all means research. Do not sign on just based on fee amounts. As the saying goes, “YOU GET WHAT YOU YOU FOR”.

Only Tax Attorneys, CPAs and Enrolled Agents can represent you with Internal Revenue Service Collections, Appeals and all other sections of the Internal Revenue Service and other tax agencies. Do not be fooled by bookkeepers, tax preparers, paralegals etc…

Written by: Martha De la chaussee

Tax Resolution Expert

http:www.advocatetaxgroup.com1