Just getting by in this ravaged economy without slipping into deeper and deeper debt is difficult enough as it is. But according to a lawsuit filed by California Attorney General Jerry Brown, television's "Tax Lady" Roni Deutch has swindled millions of dollars from customers across the country, as reported by CBS MoneyWatch.
Her tax relief service is not the only one being targeted as a shady scam, as countless Atlanta bankruptcy attorneys most likely have clients whose debts became even worse after contacting unscrupulous firms.
The AG's 28-page complaint (PDF) refers to the defendant's business operation as a "heartless scheme" that has resulted in thousands of Americans having to pay massive fees to the Internal Revenue Service in order to stop them from collecting back taxes. Jerry Brown, who is running for governor, said the following when announcing the suit:
"Tax Lady Roni Deutch...promises to significantly reduce [client's] IRS tax debts, but instead preys on their vulnerability, taking large up-front payments but providing little or no help in lowering their tax bills."
The suit seeks restitution to the tune of $34 million for thousands of past clients and is urging the court to permanently stop her advertisements, which the California Attorney General's Office claims are misleading.
In her ads, Roni Deutch claims to have saved her clients from having to pay thousands of dollars to the IRS. However, Jerry Brown claims that all three clients featured in her ads still owe the full amount of their taxes to the IRS, plus interest and penalty fees.
Instead of providing the promised relief, he said most of the alleged victims are put into "currently not collectible" status, where the government stops collecting but fines and interest continue to accrue without the taxpayers' knowledge.
Any who believes they have been victimized by Roni Deutch's tax relief service are urged to file a complaint online or call 1-800-952-5225.
Related Resources:
- Eliminating Tax Debts in Bankruptcy (FindLaw)
- Browse Georgia Bankruptcy Lawyers (FindLaw)
- Massive Debt Negotiation Scam Shut Down (FindLaw's Common Law)
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