Tax Relief (Roni Lynn Deutch) commercials

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So what you are saying is that you don't believe class actions should exist?

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I think he's saying lawyers shouldn't exist.

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Do these "tax relief" commercials piss anyone else off? If these people owe taxes, then pay up and stop passing on your tax burden onto others.

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Getting that type of relief was fairly common during the Clinton Administration, but it has been quite rare under the Bush Administration. Those outfits sell their services as preparers of Offers in Compromise. You can apply for an Offer in Compromise on any of three grounds, doubt as to the liability, doubt as to the collectability, and for effective tax administration.

Doubt as to liability means there is likely cause that the assessed tax liability is significantly larger than the taxpayers actual liability should have been. This can occur when the taxpayer does not file a return and the IRS prepares a substitute for return (all known sources of income and only a standard deduction) that results in the largest possible tax liability. For purposes of fairness, and to get the taxpayer back into filing returns, the IRS will reduce the tax to reflect allowable deductions the taxpayer would have been permitted if a return had been filed. These are probably the "success" stories being touted by the advertisers, but they don't tell you what their fees or "success" rates are.

Doubt as to collectability now requires a permanent impairment in the taxpayers ability to earn enough income to pay the assessed tax. For example someone who ran up large tax liabilities while working as a surgeon loses the ability to perform surgeries can claim they won't have sufficient future earnings to pay the taxes owed. You used to be able to show the IRS that repaying the tax would create an undue hardship and prevent the taxpayer from paying his current and future taxes. This is the escape route that was closed off for the most part.

The effective tax administration reason is basically just hoping you catch the IRS agent in a good mood on a good day. There is no doubt as to the liability or collectability, so you have to convince the IRS that your tax should be reduced to further the interests of the IRS and the tax collection system. I've never seen an OIC approved for purposes of effective tax administration.

There is a $150 application fee for OIC's and you have to pay a portion of the tax. You only get one shot for approval so you try and make an argument for all three types of relief. Companies selling OIC's make you pay up front for their services and they do not guarantee success. Most people would be better off just going to an accountant or attorney and negotiating an installment payment plan with the IRS.

most of the time the shite that they get reduced is the interest and penalties that accumulate on the money owed

the IRS can be pretty draconian about that shite