Let’s unearth a common lie that tax resolution professionals slam down prospective clients’ throats.
I’m referring to the “pennies on the dollar” advertising that you see everywhere.
Have you ever spoken with someone at a large national tax resolution firm? If so, you have likely heard that you qualify for the Offer in Compromise program.
I have news for you… they say that to everyone they talk to.
Because if they could help you get an Offer in Compromise then you will be more likely to hire them, right?
The notion that almost everyone that is in tax debt will be able to settle their tax debts for substantially lower than their actual debt is simply not true.
It’s a bold faced lie to get more sales and customers through the doors. (After all, most of those that you talk to are just salesman that are not licensed and do not have actual experience resolving tax debts.)
But don’t take my word for it. The IRS recently posted their 2019 fiscal year collection statistics and here’s what we learned:
- 7.9 million new collections cases were added, 9.8 million cases closed
- Fiscal year 2020 was started with only 11.2 million collections cases in active inventory
- Only 17,890 Offers in Compromise were accepted, which works out to be 0.18% of all Collections cases and only 33% of those submitted.
Yes, you read that correctly… only 0.18% of Collections cases were closed due to an Offer in Compromise being accepted.
Do You Qualify for an Offer in Compromise?
Now that you have seen the IRS statistics, do you qualify for this program?
You might! But an installment agreement or getting CNC Status is more likely, statistically speaking.
That’s just the reality.
I wanted to debunk this lie because most tax relief companies present this program as the only option.
But it’s not. And it is only an option if you qualify for it.