Tax relief scams: Offer in Compromise mills and other warning signs

Tax relief scams and how to spot them

The most common tax relief scams promise to settle your IRS debt for “pennies on the dollar,” charge large upfront fees, and pressure you to sign fast. The IRS lists these “Offer in Compromise mills” on its Dirty Dozen list of tax scams. Separately, IRS impersonators demand immediate payment by gift card, crypto or wire.

Reviewed by [REVIEWER NAME], Enrolled Agent · Last reviewed [DATE]

Offer in Compromise mills

An Offer in Compromise is real, but it’s rare: in fiscal year 2025 the IRS received 38,797 offers and accepted 5,464. Mills sell it as if it were routine. The IRS warns about:

High fees
High-pressure tactics
Promises they can’t keep

If someone says you’ll settle for a fraction of what you owe before they’ve seen your finances, they’re guessing at best.

Other warning signs

Guaranteed results or “we’ll make your debt disappear.”
A “Fresh Start program” described as something special you qualify for.
Fear-based urgency: countdowns, “the IRS is about to seize your home.”
Big fees before any review of your IRS records.
Mailers that look official after a lien is filed. They’re from private companies.

IRS impersonation scams

Scammers pretend to be the IRS by phone, text or email. They demand immediate payment, often by gift card, crypto or wire, and threaten arrest. The real IRS usually contacts you by mail first. See is this IRS letter real?.

If you’ve already paid a scammer

Contact your bank or card issuer right away.
Report it to the FTC at ReportFraud.ftc.gov, and to your state attorney general.
Check your real IRS balance in your IRS Online Account. Your actual tax problem still needs to be resolved.

Common questions

What is an Offer in Compromise mill?

A promoter that misleads people into applying for an Offer in Compromise they’re unlikely to get, often charging high fees. The IRS warns about high fees, high-pressure tactics and promises they can’t keep.

Where can I report a tax relief company?

You can report deceptive companies to the Federal Trade Commission at ReportFraud.ftc.gov and to your state attorney general. Report IRS impersonation to the Treasury Inspector General for Tax Administration.