The Internal Revenue Service issued a consumer alert advising taxpayers to beware of claims by promoters that tax debts can be settled for pennies on the dollar through the Offer in Compromise Program. Dishonest promoters charge a large amount of money by selling taxpayers false promises of settling their IRS debt for pennies on the dollar. Remember that if you can't talk directly with a Tax Attorney you should not hire the firm. Part of the IRS consumer alert reads as follows: IR-2004-17, Feb. 3, 2004 WASHINGTON -- The Internal Revenue Service today issued a consumer alert advising taxpayers to beware of promoters' claims that tax debts can be settled for "pennies on the dollar" through the Offer in Compromise Program. Some promoters are inappropriately advising indebted taxpayers to file an Offer in Compromise (OIC) application with the IRS. This bad advice costs taxpayers money and time. An Offer In Compromise is an agreement between a taxpayer and the IRS that resolves the taxpayer's tax debt. The IRS has the authority to settle, or "compromise," federal tax liabilities by accepting less than full payment under certain circumstances. "This program serves an important purpose for a select group of taxpayers. But we are increasingly concerned about unscrupulous promoters charging excessive fees to taxpayers who have no chance of meeting the program's requirements," said IRS Commissioner Mark W. Everson. "We urge taxpayers not to be duped by high-priced promises."