Tax fraud in the name of tax resolution services was unexpected until top tax resolution companies were found to be deep in tax scams. American Tax Relief was one such big name that was sued by the Federal Trade Commission (FTC) for cheating American taxpayers off $60 million.
American Tax Relief’s tax scam ran deep. The owners of the tax company were driving Ferraris and living in a multimillion-dollar home with the tax scam money when the FTC acted on numerous consumer complaints and sue the company for tax fraud. They put a restraining order on the company’s operations and deceptive claims and froze the assets of the defendants.
According to the FTC, American Tax Relief took large upfront fee of up to $32,000 for tax services that did not benefit the taxpayers in any way. The company also charged the credit cards of their customers without their knowledge.
The FTC is working to seek compensation for the victims of this nationwide tax fraud. American Tax Relief was shut down by the FTC, and its husband-wife owner, Alexander Seung Hahn and Joo Hyun Park, were sued for unethical business practices. American Tax Relief had been in business since 1999.
Tax scam of this California-based tax company is not alone. Other well-known and heavily publicised tax resolution companies namely Tax Masters, Roni Deutch and J.K. Harris were shut down because they were into tax fraud.
Fraudulent tax resolution companies usually use deceptive advertising to tempt taxpayers into hiring their services. Thousands of taxpayers have fell victim to tax scams of unethical tax companies. To stay safe from tax fraud of fraudulent tax companies, taxpayers are advised to choose an honest tax company to resolve their tax problems.
When choosing a tax resolution company, we advice you to go through the companies we have reviewed so that you can make an informed decision.