by Jay Freeborne , Enrolled Agent
October 13, 2009

The tax resolution companies based out of Colorado -- Omni Financial, Summit Tax and Larson Financial among others -- are known for "cold calling" people and businesses who have tax liens against them. This is pretty innocent, but what's not innocent is when they misinform taxpayers. We now have two specific instances in mind:


1. We just got off the phone with a customer who was informed by a "salesman" from Omni that the statute of limitations is frozen when you are placed in "currently not collectible" status. He was trying to persuade the customer that he had to do an Offer to settle, as the tax would never expire in "uncollectible status." THIS IS NOT TRUE and is a BRAZEN LIE simply used to get the customer to hire them. This customer does NOT need any tax professional help. If he was to do an Offer in Compromise -- it would be strictly voluntary -- to get the lien removed. However, if he waits it out, the tax will eventually expire.

2. About five months ago, we had an experience where one of our paid clients was cold called by Omni. We had already had his 941 case placed in currently not collectible (THIS IS NOT EASY TO DO!). Omni told him that they would help him get a settlement/Offer on top of that. Looking at our client's case (personal assets had significant value)...there was no way that he would qualify for that. The sad thing is: my client fell for their sales pitch, and paid them on top of what he had ALREADY paid my staff at Washington Tax Services. Pretty sad.

Be careful out there.

*Definition: Currently Not Collectible means that a taxpayer has no ability to pay his or her tax debts. The IRS can declare a taxpayer "currently not collectible" after the IRS receives evidence that a taxpayer has no ability to pay.

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