IRS Warns About “Pennies on the Dollar” Predators
Just last month, the IRS issued an urgent warning about something I’ve been fighting for years: Offer in Compromise Mills.
These predators target desperate families like the Martinez restaurant case I just shared. They promise to settle $85,000 tax debts for “pennies on the dollar” while charging $15,000+ upfront fees.
The Mill Playbook:
- Target families in crisis with flashy TV ads (“We settled this client’s $100K debt for $500!”)
- Promise unrealistic outcomes (“settle for 5 cents on the dollar!”)
- Collect massive fees before doing any real work
- Deliver cookie-cutter applications that get rejected
- Disappear when families need help most
The September 2024 Warning (IR-2024-243)
The IRS specifically called out these mills because they’re seeing a surge in families getting scammed. Revenue Officers are reporting more rejected OIC applications from mill companies than legitimate practitioners.
Why This Matters to Your Family
When the Martinez family came to me, they’d already been burned by one of these mills. Paid $12,000. Got nothing. Lost valuable time while their debt grew.
The Real OIC Success Formula
Legitimate Offer in Compromise cases (like the Martinez family) succeed because:
- We investigate the actual financial situation first
- We build cases based on IRS collection standards
- We have relationships and experience of doing this over and over
- We know which cases qualify BEFORE filing…Yup we can usually tell within 20 minute conversation if you could possibly qualify
The Underground Truth
The mills advertise “pennies on the dollar” because it sells. The reality? Most successful OICs settle for 10-40% of the debt – still life-changing, but honest.
The Martinez family’s $85,000 debt? We eliminated it completely through strategic OIC work that actually followed IRS procedures.
Get more details: TaxDebtConsultant.com