If your business has fallen behind on 941 taxes, the IRS may very well file a tax lien against it. That lien will become public record. For several years, several "tax resolution" companies in Colorado have created an industry out of representing businesses on their 941 issues. How do they contact you? Finding you in the public record, telemarketers will call your business and offer the assistance of their tax professionals.
The two largest 941 tax resolution companies are 2020 Financial of Broomfield, Colorado (BBB record) and Omni Financial also of Broomfield (BBB record). They have spawned many other competitors in the lien-telemarketing business.
Here are some issues which might have you think carefully before hiring these firms to represent you on your 941 situation:
- Telemarketer Hard Sale? Is the telemarketer selling you too hard? Creating urgency where there shouldn't be? Scare tactics? This person might have zero involvement on your case down the road, so take their sales pitch with a grain of salt.
- Excessive fees and continuation fees. Companies in Colorado (Omni in particular) are notorious for charging excessive up front fees and large continuation fees down the road. Be sure to read the fine print if you hire these companies. We explore that more in another post: Rocky Mountain Why?: Charging Extra Fees in Colorado.
- Customer service chain and employee turnover. Many of these companies are notorious for having high employee turnover. You want to get the phone number of the actual licensed tax professional on staff just in case the customer service person is gone the next week.