Has anyone had any success or experience with firms that resolve IRS tax debts (pennies on the dollar)?

Answer 1

From the IRS website

Taxpayers should beware of promoters' claims that tax debts can be settled for "pennies on the dollar" through the Offer in Compromise Program. Check the OIC requirements to see if an offer in compromise is right for you .

http://www.irs.gov/newsroom/article/0,,id=120169,00.html
http://www.irs.gov/businesses/small/article/0,,id=109622,00.html

Answer 2

Tha majority of the national firms that have the multitude of offices and advertise are successful only a small part of the time. They will lure you in and ask you to pay thousands of dollars in advance or over time, but they won't tell you what chance you really have to settle for a fraction of your debt.

I do this type of work regularly, and I have almost a 100% success rate. However, I only take cases where I know that the facts support such a tactic. If a client has a questionable case that the Offer In Compromise program will probably not stand a good chance of success, I will tell the potential client this information BEFORE they spend a dollar with me.

The "OIC mills" as I call them, have very few actual professionals that do the work that deal also with the clients. More often than not, you deal with a salesman, not a practitioner. This means the salesman doesn't KNOW how the system works and doesn't have the experience to answer the tough questions. They are trained to get your money. And the do NOT guarantee success.

p.s the last case I closed (about a month ago) we settled a $1.25 Million liability for $5,000. This was an unusual case, but one that justified the solution.

--A Damn Fine Tax Advisor

Answer 3

Keep in mind that there are 100 pennies in a dollar. If they negotiate a settlement for 99 cents on the dollar, they've delivered on their promise -- and your total debt (to them and the IRS) will have gone up, not down.

Any competent CPA can assist you with an Offer in Compromise, usually at a much lower cost than those firms that advertise heavily -- ad expenses have to be made up somewhere!