‘Pennies on the Dollar’ Tax Relief Scams

Last updated on July 11, 2021

Taxpayers who are under tax debt and are looking to resolve it by taking outside help are always susceptible to promises of tax debt reduction by tax services. Fraudulent tax services take advantage of this susceptibility and dupe innocent taxpayers into paying them bloated fee for tax resolution. Tax relief scams of some of the top tax relief companies made news in the recent past. ‘Pennies on the dollar’ was their tool to deceive taxpayers.

IRS Offer in Compromise program, popularized by fraudulent tax resolution companies as ‘Pennies on the Dollar’, reduces the tax debt amount of taxpayers who qualify for it. Tax companies running tax relief scams fully knew that most taxpayers are not eligible for this IRS debt reduction program, and yet they advertised that they can reduce tax debt of any taxpayer who chooses to hire their services.

Offer in Compromise has strict restrictions and only those taxpayers who are in deep financial trouble may qualify for this tax debt reduction program. Tax relief scams of these deceitful tax services led to thousands of taxpayers into deeper trouble with the IRS. Instead of resolving the tax debt problems of taxpayers, taxpayers who hired their services found that their tax problem was made more complicated because of missed deadlines and lack of action.

Pennies on the dollar is used by fake tax services to tempt taxpayers into hiring their service. It is a marketing tool for them that they use to make money.

The heartlessness of tax relief scams is appalling. Their concern does not lie with resolving the tax problems of taxpayers, but to extract as much funds as they can from them. Taxpayers are advised to stay protected from sham tax services. Those who are looking to hire a tax resolution service may go through our ratings and reviews of tax resolution companies.