Con Artists Target People Who Owe The IRS Money
In one scheme, thieves will offer to "help" you pay back taxes, only to leave you on the hook for expensive fees in addition to the taxes.
- (opens in new tab)
- (opens in new tab)
- (opens in new tab)
- Newsletter sign up Newsletter

With tax season under way, the IRS is once again warning taxpayers to be wary of “Offer in Compromise” scams. These promotions claim that they can help taxpayers pay back taxes for just “pennies on the dollar.” Victims often end up paying the promoters thousands of dollars in fees and still end up owing money to the IRS.
While the IRS’s Offer in Compromise program allows taxpayers to request a reduction in unpaid taxes, the guidelines are strict, and only a small percentage of applications are approved. To be eligible for the program, you must be up to date on your tax returns and have received at least one bill from the IRS. You’ll be required to provide supporting documents, including a breakdown of your expenses. The IRS will then review your income and the assets you own, such as equity in your home, to determine whether you’re eligible to have some of your tax debts forgiven. If it determines that you can afford to repay your taxes in full through an installment program, it will likely reject your offer.
You can find out if you prequalify for the OIC program by going to https://irs.treasury.gov/oic_pre_qualifier (opens in new tab). The IRS charges a $250 application fee but waives it for low-income taxpayers.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Bank impersonation scams. Consumers also need to be on the lookout for con artists who claim to be fraud officers from their bank. Here’s how it works: You receive a fraud alert via text or e-mail asking you to verify a purchase you didn’t make. Respond “no” and you’ll receive a phone call from a fraud impersonator requesting personal information, such as your username and password, in order to “catch” the scammer. The imposter then uses that information to drain your account. Never give out sensitive information over the phone or send money to people you don’t know. Hang up and contact your bank if you’re not certain a call is legitimate. While your bank may ask you to verify your identity or account information, this usually happens when you initiate the call.
Rivan joined Kiplinger on Leap Day 2016 as a reporter for Kiplinger's Personal Finance magazine. She's now a staff writer for the magazine and helps produce content for Kiplinger.com. A Michigan native, she graduated from the University of Michigan in 2014 and from there freelanced as a local copy editor and proofreader, and served as a research assistant to a local Detroit journalist. Her work has been featured in the Ann Arbor Observer and Sage Business Researcher.
-
-
Fed Raises Interest Rates Yet Again: What the Experts Are Saying
Federal Reserve The Fed's quarter-point rate hike was welcomed by the market and market pros, alike.
By Dan Burrows • Published
-
Stock Market Today: Stocks Swing Higher After Powell Presser
The Fed raised rates by 0.25%, as expected, and Powell promised to "stay the course until the job is done."
By Karee Venema • Published
-
Kiplinger's Tax Map for Middle-Class Families: About Our Methodology
state tax The research behind our judgments.
By David Muhlbaum • Published
-
Tax Breaks to Help You Pay for College
Paying for College Everyone knows education is pricey and getting pricier. But not everyone knows about the tax relief available at all stages.
By Sandra Block • Published
-
Retirees, Make These Midyear Moves to Cut Next Year's Tax Bill
Tax Breaks Save money next April by making these six hot-as-July tax moves.
By Rocky Mengle • Published
-
Estimated Payments or Withholding in Retirement? Here's Some Guidance
Budgeting You generally must pay taxes throughout the year on your retirement income. But it isn't always clear whether withholding or estimated tax payments is the best way to pay.
By Rocky Mengle • Published
-
PODCAST: National Taxpayer Advocate Erin M. Collins Wants to Help
Financial Planning Your tax dollars are at work funding a government bureau to help you deal with the IRS. Strange but true! Also, the price of Amazon is going up.
By David Muhlbaum • Published
-
How to Cut Your 2021 Tax Bill
Tax Breaks Our guidance could help you claim a higher refund or reduce the amount you owe.
By Sandra Block • Published
-
Why This Tax Filing Season Could Be Ugly
Coronavirus and Your Money National Taxpayer Advocate Erin M. Collins warns the agency will continue to struggle with tight budgets and backlogs. Her advice: File electronically!
By Sandra Block • Published
-
Smart Money Moves to Make Before Year End
Financial Planning You can take action now to lower your taxes, save money and enhance your finances for 2022.
By the editors of Kiplinger's Personal Finance • Published