United States - FTC Halts Tax Relief Scam

At the Federal Trade Commission's request, a court has halted a national operation based in Beverly Hills, California, that allegedly bilked consumers out of more that $60 million by falsely claiming it can lower people's tax debts. According to the FTC, in TV, radio and Internet ads, American Tax Relief LLC falsely claims it can settle consumers' delinquent federal and state taxes for a fraction of the amount they owe. The company also falsely claims that it can remove tax liens and stop wage garnishments, bank and tax levies, property seizures, and "unbearable monthly payments". The company charges up-front fees ranging from about $3,200 to $25,000 for the purported tax relief services but, in reality, very few of the company's customers qualify for the promised tax reliefs programs, which are available only in very limited circumstances. Most people who hire the company would qualify at most for installment payment plans, which still require payment of the full amount owed, and which many tax payers can easily arrange by themselves.

Read the press release.