Tax Relief Industry

The legal case against unlicensed cold calling tax liens

WATAX has been blogging about the phenomenon of companies, largely in Colorado, cold-calling consumers (businesses and individuals) with tax liens against them. Our research shows that there is a strong legal argument that unlicensed people from these companies cannot call consumers who have tax liens.

The IRS Publication 470 - Limited Practice Without Enrollment lays the parameters for people who are NOT licensed tax professionals (Enrolled Agents, CPA's, Attorneys). "Unenrolled preparer" refers to anyone who is unlicensed or unenrolled to practice before the IRS. In Section 8. Solicitation and Advertising, it clearly states:

.01 An unenrolled preparer shall not make, directly or indirectly, an uninvited solicitation of employment, except as noted below, in matters relating to the Internal Revenue Service. Solicitation includes, but is not limited to, in-person contacts, telephone communications, and personal mailings directed to the specific circumstances unique to the recipient. This restriction does not apply to (1) seeking new business from an existing or former client in a related matter or (2) solicitation by mailings, the contents of which are designed for the general public.

.02 No unenrolled preparer shall, with respect to any Internal Revenue Service matter, in any way use or participate in the use of any form of public communication containing false, fraudulent, misleading, deceptive, unduly influencing, coercive, or unfair statement or claim.

The moral of the story is should you trust a "tax resolution" company whos' representatives are not following the law by calling you?

Is 2024 the year to solve your tax issue? WATAX is ready to assist you now. Please call us at 1-888-282-4697 or email us a description of your tax issue and we'll contact you promptly.

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