Legitimate is a key word. Offers in Compromise are an important program to help people who can't pay to settle their federal tax debts. But, as the IRS notes, these"mills" can aggressively promote Offers in Compromise—OIC—in misleading ways to people who don't meet the qualifications, frequently costing taxpayers thousands of dollars.
Because of the nature of the OIC—and the dollars involved—the process can be time-consuming. It can also be confusing for taxpayers who may not have a complete grasp on their finances.. You must also submit Form 433-A,Collection Information Statement for BusinessesYou'll also need to submit a non-refundable fee of $205 and payment made in good faith. The payment is typically 20% of the offer amount for a lump sum cash offer or the first month's payment for those made over time.
Additionally, you cannot currently be in an open bankruptcy proceeding, and you must resolve any open audit or outstanding innocent spouse claim issues before you submit an offer.You can probably tell—it's a lot to consider. You may want representation. A tax professional can help marshal you through the process and offer practical guidance, while communicating what fees could look like.