Stephen J. Dunn, a specialist in tax and trust and estate law at Demorest Law Firm, PLLC, recently wrote an article entitled “Tax Resolution Scams 101”. In the article, Mr. Dunn explains how tax resolution operators use the premise of an offer-in-compromise (OIC) to defraud taxpayers out of several thousand dollars in retainer fees for nothing in return. The IRS almost never grants an OIC, upon any grounds. Mr. Dunn discusses how the filing of an OIC, in fact, harms the taxpayer in several ways, and he advises that taxpayers would be much better served by seeking an installment agreement from the IRS.
Mr. Dunn suggests that legislation should be passed to outlaw false or misleading statements in the marketing of tax resolution services. Private civil actions against tax scammers are often impractical, though class-actions make more economic sense. In addition, the IRS can seek an injunction against a tax resolution scammer, and U.S. attorneys can prosecute tax scammers for wire and mail fraud, among other offenses.
Click here to download a PDF of the article.
This article was written by Stephen J. Dunn, Of Counsel to Demorest Law Firm. Click here to view his professional resume.
