It’s no surprise to learn that many Americans have skyrocketing debt, and in particular big tax debt too. With huge tax debt and hard to pay tax liability many folks received IRS tax liens, wage garnishments, and asset seizures – all things that cause normal taxpayers to get pretty nervous and hire the first company who promises help. Sadly, many of those companies are tax resolution services scams. Here’s the biggest scammers: TaxMasters, JK Harris, and Ronnie Deutsch were just a few of the big name services that came under legal persecution and eventually went into bankruptcy.
This is Patrick Cox, founder of the company TaxMasters – one of the biggest tax scams in history. This company was sued by the Texas Attorney General and found guilty with a verdict of $195 Million dollars. They misled and defrauded taxpayers, promising results and then abandoning the case after collecting the money. The court found that they were a scam, with over 100,000 violations of deceptive trade practice.
This is Roni Deutch, founder of the aptly named tax resolution company Roni Deutch (commonly known as the “The Tax Lady”). Using high pressure sales and deceptive practices, Deutch swindled millions from troubled taxpayers, and as a result was sued by the California Attorney General for $34 Million dollars. In court, Deutch was held in contempt for deliberately shredding documents and siphoning money out of the company against orders.
This is John K. Harris, founder of JK Harris & Co. This tax resolution service scam used misleading advertising and sales tactics to get taxpayers to sign up and then they would let their tax debt pile up, along with the penalties and interest. The company was sued and eventually forced to pay a $6 Million dollar settlement. Later, Harris declared bankruptcy. Harris was recently forced to pay an additional $4.8 Million dollars to resolve the assets he extracted from the company.
Recognize this commercial? It’s from American Tax Relief, a tax resolution services scam that was sued by the FTC for over $100 Million dollars. American Tax Relief (ATR) not only duped it’s customers into hiring them for tax resolution, they also sold their personal info. Apparently the owners, Hahn and his wife had their assets seized – including a ferrari, a Beverly Hills home, an LA condo, and expensive jewelry. Gotta love the irony of that.
Don’t miss our tips for how to dodge a tax resolution services scam here.