Pennies on the Dollar: If you’ve got an IRS debt and you’re looking to settle, chances are you’ve seen the commercials on television that claim they can settle your debt for “pennies on the dollar.” They claim that you can compromise with the IRS and settle your debt for much less than you owe. While the IRS does offer this program, it is not nearly as easy as the commercials say. Read on to learn the truth about the Offer in Compromise Program.

Do you Qualify? Most companies will tell you that you qualify before even reviewing your case. The Offer in Compromise (OIC) Program is very simple, you either qualify or you don’t. But there are specific financial variables involved. Anyone that tells you that you qualify for an OIC before reviewing your finances is only interested in your money. Make sure you speak with someone who looks into the specifics of the case before making a decision like that.

The Paperwork: Another thing these companies do is take your case knowing that it will be rejected, and submit the paperwork anyway. This is a terrible trick because even if it’s rejected, they’ve “done their job” by submitting the paperwork. The truth is; half of these Offer Mill companies don’t even complete the paperwork they submit. So even if you had the chance of qualifying, the IRS will reject the case because the paperwork is either incomplete or incorrect.

The Statistics: The IRS rejects over 83% of Offer in Compromise cases. The reason is because these Offer Mill companies all over the country are submitting bogus cases. A good tax resolution company will review all the financial specifics of the case, and will make sure you can actually qualify. A good tax resolution company won’t submit your paperwork unless they truly believe your case will be accepted.

The Program: There are several other things these “Pennies on the Dollar” companies won’t tell you about the OIC program. For instance, depending on what the compromise is, the IRS may require a percentage lump sum payment up front. Also, the IRS requires anyone in this program to agree to a 5 year agreement in which they must pay anything they owe, on time, for five years. If they default in that agreement the Offer is Rejected and the original debt is re-instated?

Is it Worth It? Absolutely. If you work with a reliable tax resolution company, you can rest assured that the Offer Program is the best program the IRS has to offer. The trick is knowing whether or not you qualify. So don’t let someone tell you that you qualify, find out for yourself. And when you’re ready to resolve the debt, get on the phone with an experienced and knowledgeable tax professional.