News & Events - Archive

July 30, 2008

IRS TOO EASY ON PAYROLL TAXES, STUDY FINDS

Wall Street Journal
Monday July 28, 11:40 pm ET
By Martin Vaughan

WASHINGTON -- The Internal Revenue Service is too lenient with business owners who fail to remit payroll taxes to the federal government, congressional investigators said in a study to be released Tuesday.

More than 1.6 million businesses are behind on payroll-tax payments, for a total of $58 billion owed as of Sept. 30, 2007, the Government Accountability Office said. In pointed language, the GAO said the IRS is slow to file liens and focuses too much on voluntary compliance rather than using stronger medicine. "IRS's collection philosophy focuses on gaining voluntary compliance, even for recalcitrant businesses that repeatedly fail to remit payroll taxes and whose actions indicate no intention to become compliant," according to the report. "It is incumbent upon IRS to revise its approach ... to prevent businesses from continuing to accumulate payroll tax debt."  The GAO findings take center stage at a Tuesday hearing of the Senate Permanent Subcommittee on Investigations, which has a history of pressuring the IRS to more aggressively pursue delinquent taxpayers. At issue are Social Security taxes -- both the 6.2% of wages withheld from employees, and the employer match -- and Medicare taxes that the employer holds "in trust" and is required to remit to the federal government. Failure to do so is a felony, and the IRS has authority to seize the personal assets of business owners if they are found to be "willful" in diverting payroll taxes.

The tax counsel for the National Federation of Independent Business, said the IRS has good reason to seek cooperation in many cases rather than resort to immediate enforcement action. "There needs to be that kind of balance to distinguish between a willful tax violator, to a taxpayer who has either made a mistake or is in a tight pinch, having a tight quarter," he said.  Mr. Rys said payroll taxes are often the biggest tax burden on small businesses because they are owed whether or not the firm made a profit.  Sen. Norm Coleman (R., Minn.), the senior Republican on the panel, said the IRS needs to get tougher with businesses who refuse to pay. "While voluntary compliance is desirable, these tax-cheats have strung the IRS along for years, with no intentions of paying the tab. Their tax debt cannot be allowed to collect dust in the basement of the IRS," he said.

The GAO recommended that the IRS revise its procedures to allow for more prompt filing of liens against property, along with other administrative improvements.  The IRS agreed with all of the GAO's recommendations. In response to the report, it noted that the IRS collects 99.8% of all payroll taxes assessed. The $58 billion is a cumulative total of uncollected debts over 10 years. The IRS considers about half of that debt to be uncollectible because the businesses in question are insolvent or defunct.The GAO said it found "extensive evidence of abuse and potential criminal activity" in a review of IRS cases related to payroll-tax collection. It said in a number of cases, business owners made extravagant personal purchases or made business investments even as they continued to flout their payroll-tax obligations.

For instance, one dentist who owes the IRS more than $500,000 after 15 years of underpaying, lives in a $700,000 home that is deeded to a spouse, and sold property to children at below-market rates to pre-empt tax liens.  Even in the face of such defiance, it took the IRS an average of two years to assess penalties against business owners' personal assets, in a sample of cases reviewed by the GAO. The longer a case drags on, the harder it is to collect as businesses and individuals often veer toward insolvency.

June 2, 2008

OMNI FINANCIAL TO HOST 2008 CHARITY GOLF TOURNAMENT

May 21, 2008

OFFER IN COMPROMISE ACCEPTED, SAVING CLIENT OVER $180,000

 While on their honeymoon in 2006, our client’s husband suffered a stroke and he had to be hospitalized in France. He was hospitalized for 10 days, during which time he suffered three more strokes.  She was told that her husband had a 99% occlusive artery and the French hospital didn't have the means to perform necessary surgery to save his life. The hospital would not release him from their care unless he was transported by a medical team back to the United States. To make matters worse, there was a huge language barrier and our client struggled to find anyone to help them that could speak English. To get home for surgery required an air ambulance – costing $22,000 – and payment was due immediately! Our client’s sister had just refinanced her home and lent them the money – but even then, client could not afford to get her husband all the way home to New Jersey. The air ambulance dropped them off at a hospital in Florida, where doctors were shocked to find that now 100% of his artery was blocked.  He was rushed into ICU.

His life was saved, but since then, he is completed disabled. He cannot walk, speak or care for himself. It seemed that their marriage was destined for financial hardship...and then the Federal Tax Lien arrived. Just months after her new husband narrowly survived with his life, it became apparent that he had accrued more than $100,000 in back tax liability, prior to their marriage. Already broke financially and emotionally, she contacted Omni Financial.

Our research indicated that not only was the tax due, but he was missing several returns dating back ten years. This greatly impaired our ability to negotiate on their behalf. Omni worked with a Revenue Officer to place the couple in Uncollectible Status 53 on the periods owed and went to work helping our client to pick up the pieces.

 Through many phone calls, our client helped us to tell their story to the Internal Revenue Service. We assisted her in the filing of all delinquent tax returns, then prepared an Offer in Compromise. When the Offer was initially denied, we immediately appealed and provided all necessary information. The Offer in Compromise was accepted in May 2008, almost 3 years to those horrible days in France. Our client paid just $12,000 on a liability of $193,076 – a savings of over $181,000!

March 5, 2008

OMNI FINANCIAL CLIENT RECEIVES REFUND CHECK FOR OVER $90,000

This client hired Omni in 2002, after they were given very poor tax advice from people they believed to be experts in tax law.  When they realized they were in trouble with the IRS, they decided to file 3 years of past returns.  In the end, they owed over $100,000 in taxes, penalties and interest.  After working with our client for a year and ceasing all collection activity, our client was able to focus on their business and save enough money to pay the liability in full.  It took quite some time to get an exact amount for the payoff, but when we did, we advised our client to pay it.  Omni then began the process of pursuing a penalty abatement to try and recoup the penalties and interest that our client paid.  Omni was able to put together a strong case and after years of relentless negotiating, along with stress and personal tragedy in our client’s life, we were able to get a substantial amount of money back for him.  On March 4, 2008, he received a refund check from the IRS for $91,982.42.

"My financial advisor said this is the first refund of this kind he has ever heard of.  I cannot express my thanks to Omni Financial for their diligence and dedication to our tax problem."

January 5, 2008

OMNI FINANCIAL SAVES CLIENT OVER HALF A MILLION DOLLARS

When this client hired Omni in 2003, their business had accrued a Federal tax liability of over $300,000 and a State of California liability of over $277,000.  Omni was able to get this client a much-needed respite while aggressively pursuing a reasonable resolution.  They owed the State Board of Equalization approximately $201,000.  Omni Financial submitted an Offer in Compromise for $6,000.  After continuous negotiations and numerous appeals, the Offer In Compromise was accepted at $6,000 saving them $195,498.44.

They also owed the Employment Development Department approximately $76,000.  Omni Financial submitted an Offer in Compromise for $6,000.  After continuous negotiations and numerous appeals, the Offer In Compromise was accepted at $6,000 saving the client $70,301.35.

Additionally, an Offer In Compromise to the Internal Revenue Service was submitted in 2005.  When the Internal Revenue Service responded to the Offer request, the biggest issue they raised was the sale of real estate.  The Internal Revenue Service considered this a dissipated asset.  The client sold their home in November of 2002 and the funds received from the sale were invested in the corporation.  

 When the trust fund recovery penalty was assessed in 2004, they did not own any real estate or hold title to any other assets.  After nearly a year of arguing this fact, we were able to get the Internal Revenue Service to accept our point, and dismiss the dissipated asset argument.  Another argument raised by the Internal Revenue Service was imputation of Social Security benefits to our client, as he was over the normal retirement age.  We were able to counter this by showing additional medical expenses and tax liabilities that would offset this additional income.  Through continuous negotiations and numerous appeals hearings, we were able to get the offer accepted for $10,000, a total savings with the Internal Revenue Service of over $297,711. 

 The overall total we saved between the State taxing authorities and the Internal Revenue Service is $563,510.79.

December 21, 2007

This is a classic case where Omni Financial made a big impact on a smaller liability.  This client hired Omni Financial in May 2007, having a 1040 tax liability of $34,595.  When they filled out a 433-A, Omni discovered they had filed bankruptcy in August of 2005.  We worked with the IRS bankruptcy division, and were able to discharge over $28,000 in tax liability.

This left our client with a $150 per month payment plan for the remaining liability of $6,544.  The payment of $150 was a hardship for the client.  We continued to work with the IRS and were recently able to close the file with a new installment in place.

Our client is now on a $61 per month partial pay Installment Agreement.  On the remaining liability of $6,544, they will pay approximately $3,660, over  $30,000 less than the original liability.

October 12, 2007

OMNI FINANCIAL SAVES CLIENT OVER $440,000

On August 24, 2006, Omni Financial was hired to assist with an Offer in Compromise. Our client came on board with Sole Prop and personal 1040 liability, totaling $470,000. Prior to hiring Omni, he filed an Offer in Compromise, which was assigned to an appeals officer. The appeals officer requested additional documentation regarding his equity in his property and true income. Omni had to contact the old Revenue Officer assigned to the case to get further background of the property equity issue. Unfortunately, we were unable to get the Offer in Compromise accepted as the counter-offer was too high and our client could not afford the payments.

In December 2006, we advised our client of a partial-pay installment agreement. We would wait until the 2006 1040 return was filed to determine if a partial-pay installment agreement was the best resolution. In February 2007, after speaking with in-house counsel, we proposed an installment agreement of $250 per month for 12 months to get expenses under control.

The case was assigned to Automated Collection Services. While negotiating the installment agreement, the case was then assigned to a Revenue Officer in May 2007. After two months of discussions with the Revenue Officer, Omni was able to successfully negotiate the installment agreement of $250 per month on the 1040 liability, and place the Sole Prop liability into uncollectible status. This will save our client approximately $443,000 over the life of the collection statute.

August 27, 2007

OMNI FINANCIAL RECEIVES "KEEPING AMERICA STRONG" AWARD

On August 27, 2007, Omni Financial was presented the "Keeping America Strong" Award on the cable television show Heartbeat of America, hosted by Willam Shatner and Doug Llewellyn.  Click Here to view part of the show.

August 10, 2007

OMNI FINANCIAL RAISES $30,944 FOR THE CAMBYLAND FOUNDATION

The Omni Financial Charity Committee is proud to announce the charitable donation of $30,994 to The Cambyland Foundation, a non-profit organization founded by Denver Nuggets' basketball star Marcus Camby. Every year, Omni Financial holds an annual golf tournament to raise money for charitable contributions to provide assistance for different organizations in our community. This year, Omni Financial chose to team up with Cambyland once again. This is the second year in a row that Omni has raised over $30,000 for the foundation. Omni's employees and various other sponsors got together for some fun in the sun at The Eagle Trace Golf Club in Broomfield on August 10, 2007. The golf tournament and auction generated over $30,000 to help fund scholarships for the young members of The Cambyland Foundation. All participants were honored to be involved in such a fun event for such a worthy cause. Thank s to everyone that made it a success.

August 7, 2005

OMNI FINANCIAL RAISES $30,000 FOR GILPIN ELEMENTARY SCHOOL

In August of 2005, OMNI Financial held its 3rd annual charity golf tournament at The Ranch Country Club in Westminster Colorado. With the help of players, employees, and sponsors, Omni Financial raised $30,000 for Gilpin Elementary in Denver. Thanks to all those who made this year’s tournament a success.

Gilpin Elementary is an inner-city school located in Five Points, one of the oldest neighborhoods in metropolitan Denver. Gilpin is home to approximately 375 students; 95% of which are on government reduced-priced lunches, and approximately 40 of the students are homeless. Gilpin School serves a diverse student population which includes: early childhood education; all day kindergarten; gifted and talented support; special education services; and a schoolwide English language acquisition program for our second language learners.

November 18, 2005

FUNDS RAISED

In November 2004, OMNI Financial donated $1,000 to the Center for People with Disabilities in Boulder, Colorado to support their annual Thanksgiving dinner and other activities. Several members of the OMNI staff also volunteered at the center to help serve the Thanksgiving meal.

The Center for People with Disabilities provides services to more than 1,000 people with disabilities in Boulder and Broomfield counties. Services include advocacy, assistance in finding affordable, accessible housing, home health care services, youth services, teaching independent living skills, and peer support. For more information on the Center for People with Disabilities, call (303) 442-8662.

OMNI raises over $20,000 for the Intrepid Fallen Heroes Fund

In September of 2004, OMNI Financial held its 2nd annual charity golf tournament at The Ranch Country Club in Westminster Colorado. Along with our sponsors, we helped to raise $20,146.73 for the Intrepid Fallen Heroes Fund. We would like to thank all those who made this event a success.

September 12, 2004

OMNI RAISES OVER $20,000 FOR THE INTREPID FALLEN HEROES FUND

In September of 2004, OMNI Financial held its 2nd annual charity golf tournament at The Ranch Country Club in Westminster Colorado. Along with our sponsors, we helped to raise $20,146.73 for the Intrepid Fallen Heroes Fund. We would like to thank all those who made this event a success.

From the families of our fallen heroes:
“When I opened the letter and saw the check, I just cried because it meant so much to me. It is truly amazing how much people do care about us that are left behind. I wish I could personally thank each member/organization that has contributed to this incredible fund. ”
“I am continually amazed by the generosity and outpouring of support from the American people. Your donation will go a long way in helping our family with funeral costs and such. We are forever grateful for your remembering and honoring Mike.”
“We know there are people in America who really care about the sacrifice that the families go through and we appreciate the gesture through this gift to us. Thank you for caring about our family and for caring about all of the families.”
“It is not the money you are sending to families of casualties that touches us so much, although your gifts are very much appreciated . . . it is your recognition of the sacrifices that have been made that means so very much to us and to all others that have similar experiences. Of this I am certain!”

Since 2000, the Fund has helped hundreds of military families. The Fund provides unrestricted grants to the families of military personnel who have given their lives in the current operations in defense of our country. The Intrepid Fallen Heroes Fund is supported entirely by donations. 100% of contributions from the public for this effort go to support military families; no administrative costs are deducted.