People making this pitch are often doing a bait and switch. It allows them
to reel a person in and then charge them a lot of money. Once they’ve
got you, they have you fill out a lot of paperwork and provide documentation
like bank statements, W-2’s, financial statements, or other relevant
information. They take a big payment upfront. It’s generally several
thousand dollars. Their fee agreement is often deemed earned when it’s
paid and it’s non-refundable.
Their hook is a bona fide IRS program called Offer in Compromise. Offer
in Compromise works great for some people, but not all. But these companies
try to make you think Offer in Compromise will work for everybody. Then,
once you pay them, they drag out the paperwork process. Six, nine, or
twelve months go by, and finally the IRS gets back to the organization
and demands more information. In some cases, the organization will try
to get some more information or more documents from their client. They
might ask for more money at this point and the process kind of repeats
itself. More documents go to the IRS, much more time goes by, and eventually
this process reaches a point where the IRS rejects the offer. It can take
a year between the payment and the rejection.
Sometimes it doesn’t get that far. The client becomes so frustrated
with the organization that they just walk away even though they’ve
already paid the money. Many of these companies have been sued by dissatisfied
clients. You can find lots of these lawsuits on Google. A couple of years
ago there was an article about it in Forbes Magazine.
What Percentage Of Your Clients Have Been To Places Like That Before Coming To You?
Many have! Before contacting me, a lot of clients have gone elsewhere for
a variety of reasons. People have come to me who have gone through the
Offer in Compromise bait and switch.
For more information on the truth about
Offer in Compromise, whether you are a good candidate, and what some of
your alternatives might be, a free initial consultation is your next best step. Get the information
and legal answers you need by calling
(510) 444-4430 today.