Offer in Compromise (OIC) Scam - How to Protect Yourself

How the OIC Scam Works

• False Promises: Promoters on social media, radio, or TV claim they can wipe out or drastically reduce your IRS or government tax debt for a small fee.

• Unnecessary Middlemen: They charge thousands of dollars for services or filings that you can easily check and submit yourself.

• Ineligibility Exploitation: They take money from people who do not meet the strict legal requirements for an Offer in Compromise.

• Upfront Fees: They pressure you to pay steep upfront service costs before evaluating your actual financial situation.

Red Flags to Watch For

• Aggressive marketing promising to settle your tax debt for a fraction of what you owe.

• Guarantees that your tax debt will be accepted before the agency even reviews your income and assets.

• Unsolicited text messages, social media direct messages, or phone calls claiming you qualify for an immediate tax or lottery settlement.

How to Protect Yourself

• Check Eligibility Yourself: Use official, free pre-qualifier tools (such as the IRS Offer in Compromise Pre-Qualifier) to see if you actually qualify before paying anyone.

• Work Direct or Verify Counsel: File directly with the tax authority or hire a verified, licensed certified public accountant (CPA) or tax attorney you researched independently.

• Never Click Suspicious Links: Do not trust links sent via unsolicited emails, WhatsApp, or social media claiming to offer quick cash or debt forgiveness.