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IRS Seizes Colorado Building, Disrupts Businesses

The Colorado state IRS has taken possession of a building in East Fort Collins, Colorado that houses a warehouse and call center for failing to pay their taxes. The building’s tenants are currently under investigation by state and federal authorities.

State IRS officers seized the 22,000-square-foot building at Prospect Road and Interstate 25 last Thursday, forcing the businesses inside to shut down. The operators of businesses inside the building are CrossCountry Fulfillment, CrossCountry Windows and Siding, and K&K Siding and Windows who owe the IRS at least $200,000 in taxes and are alleged to have lied on their income tax returns. Furthermore, they also owe the state of Colorado at least $50,000. The building seizure has temporarily disrupted inbound calls to a local sexual assault crisis center and disrupted other businesses with inventory stuck inside.

The building itself is owned by a Colorado Springs-based company that has nothing to do with the businesses targeted by the IRS and the state. But as a result of the seizure, companies using CrossCountry to fill sales orders will have their business operations interrupted.

The building owner, John Cockson of Colorado Springs complained, “There’s an incredible amount of collateral damage here. I understand the state of Colorado and its position of wanting that money. But to mess around with the livelihood of myself and 40 other businesses, let alone the call center, to me, it’s inconceivable.”

The companies inside had operated an inbound contract call center for the Fort Collins-based Sexual Assault Victim Advocate Center for about five years. SAVA executive director Louann DeCoursey said when the building was seized, the call center stopped, and calls to the SAVA hotline went unanswered. SAVA typically receives a dozen or so calls a week. Since then SAVA has made crucial changes and has restored the hotline. Those who could not contact SAVA last week can now call (970) 472-4200.

Cockson said he was trying to get in touch with state IRS officials since he learned of the seizure last Friday but to no avail because Monday was a public holiday being Columbus Day. The building's doors have been locked and Cockson said he cannot do anything about it for now.

The building has been on the IRS’ radar since September last year when it sent an undercover agent to size up the operations inside before swooping in to seize computers and paperwork from a couple who previously served federal prison time for securities fraud and running a Ponzi scheme. The companies inside the building are associated companies run by Kay and William Kunzman who are alleged to be owing to the IRS at least $200,000 in federal taxes and lying in their income tax returns.

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