The IRS issued a problem alert urging taxpayers “to avoid getting caught up in a new tax fraud disguised as a debt payment option for credit cards or mortgage debt.”
This kind of fraud, which is also marketed as a way to reduce taxes or pay outstanding tax liabilities, according to the IRS, involves filing of Form 1099-OID, or Original Issue Discount, and/or bogus financial instruments such as bonded promissory notes.
Diamond says that by filing a form OID, scammers are likely charging a fee to taxpayers claiming they can help get them out of their debt.
I've seen some of these. Not surprisingly, There are also signs of Shiff and Hendrickson filings on the accounts also. Must be the new crock-du-jour.