F.T.C. Says Company Promised Tax Relief but Failed to Deliver

by sbucciarel Banned
13 replies
  • OFF TOPIC
  • |
Thought this was an interesting story because every time I saw the TV commercial, I thought ... What a crock of BS.

In recent years, some 20,000 people have turned to American Tax Relief of Beverly Hills, Calif., to do just that after seeing the company's advertisements on television, the Internet or in print, where actors portraying clients say the company reduced their back taxes to say, $2,000 from $24,000 or $40,000 from $200,000.

But the Federal Trade Commission said Wednesday that despite collecting $60 million to $100 million in upfront fees from often-desperate clients in recent years, American Tax Relief rarely, if ever, delivered on its promises.
http://www.nytimes.com/2010/10/07/bu.../07relief.html
#company #deliver #failed #ftc #promised #relief #tax
  • Profile picture of the author Pete Egeler
    That's kinda like the guys that hawk the "We pay top price for your old gold" you see on the tube. An investigation found they only offer (on average) 8% of the actual price you'd get if you took it to a jewelry store.

    Pete
    {{ DiscussionBoard.errors[2692728].message }}
    • Profile picture of the author seasoned
      Originally Posted by Pete Egeler View Post

      That's kinda like the guys that hawk the "We pay top price for your old gold" you see on the tube. An investigation found they only offer (on average) 8% of the actual price you'd get if you took it to a jewelry store.

      Pete
      Well, you send it in the mail, and WHO KNOWS what will happen!? Besides, an item is usually worth more than what it is made out of. A rolex watch is worth more than any gold it has, jewelry is worth more than the gold. The gold places only promise to pay you for the gold. 8-(

      But MAN, I always wondered about those tax places. One here makes it sound like a SLAM DUNK and the savings they promise?

      Owe $20,000?

      Pay only $1,600!

      That is an actual example, pay 8% of the calculated charge!

      Steve
      {{ DiscussionBoard.errors[2692980].message }}
      • Profile picture of the author Etak
        Oh that's hilarious! Every time I saw those commercials, I would think "what BS". Feel bad for those who were ripped off by them, though.
        Signature
        {{ DiscussionBoard.errors[2693080].message }}
  • Profile picture of the author KimW
    I was ripped off by one of those companies.
    To the tune of almost 3 grand.
    The comapny was JK H_ _ _ _ _
    Then there was a class action suit brought against them. I got $12 bucks back after the settlement lawyer fees.
    Signature

    Read A Post.
    Subscribe to a Newsletter
    KimWinfrey.Com

    {{ DiscussionBoard.errors[2693346].message }}
    • Profile picture of the author seasoned
      Originally Posted by KimW View Post

      I was ripped off by one of those companies.
      To the tune of almost 3 grand.
      The comapny was JK H_ _ _ _ _
      Then there was a class action suit brought against them. I got $12 bucks back after the settlement lawyer fees.
      Yeah, don't you LOVE that! The bankruptcy lawyers are supposed to do TWO things!

      1. Punish the person that ended up effectively stealing.
      2. Recover as much as they can without excessive harm to the bankrupt entitees owners FOR THE CREDITORS.

      But they rigged it so they the LAWYERS get paid first, and they take all that they can get and the creditors are lucky they can get PENNIES on the dollar.

      Well, I know that there are three ways the "legit" ones generally do such things. For credit and, to some degree, for taxes. Bankruptcy, hardship plans, loans, and I never liked any of those, so I never bothered to take advantage.

      Steve
      {{ DiscussionBoard.errors[2694314].message }}
  • Profile picture of the author KimW
    Steve, the company I am talking about is one of those tax relief companies.

    But you are right about bankruptcy and the lawyers that handle them.
    Its amazing what they (bankruptcy lawyers) get away with.
    Signature

    Read A Post.
    Subscribe to a Newsletter
    KimWinfrey.Com

    {{ DiscussionBoard.errors[2694386].message }}
    • Profile picture of the author seasoned
      Originally Posted by KimW View Post

      Steve, the company I am talking about is one of those tax relief companies.

      But you are right about banktuptvy and the lawyers that handle them.
      Its amazing what they (bankruptcy lawyers) get away with.
      YEAH, you said enough that I figured out what you meant. It's the one where usually they have someone talk about the company, a heavy set guy comes up behind them, and says HI, i'm .... . ...... and continues...

      At least NOW more are somewhat more honest, but THAT is probably because of the FTC!

      I said bankruptcy lawyers, I should have brought up that class action lawyers work the SAME way.

      After all, if they don't have ONE client, who is there to control costs, etc?

      Steve
      {{ DiscussionBoard.errors[2694699].message }}
  • Profile picture of the author KimW
    "YEAH, you said enough that I figured out what you meant. It's the one where usually they have someone talk about the company, a heavy set guy comes up behind them, and says HI, i'm .... . ...... and continues... "

    Yep, that's the one. Why the government is letting him stay out of jail and the company stay in business is beyond belief.
    Signature

    Read A Post.
    Subscribe to a Newsletter
    KimWinfrey.Com

    {{ DiscussionBoard.errors[2694956].message }}
    • Profile picture of the author Kay King
      Around 2003 there was a local woman doing taxes for people - some co-workers had their taxes done by her and couldn't say enough about ow much money she had saved them.

      When you have over 2000 people in a company, the word gets around and people flocked to this person to get their taxes done. I didn't, thank goodness, as it sounded too good to be true.

      A few months later, she was arrested. Almost all the people who had her do their taxes were either audited or billed for significantly more money by the IRS. She saved them a lot of money - but not through legal deductions.

      kay
      Signature
      Saving one dog will not change the world - but the world changes forever for that one dog
      ***
      It actually doesn't take much to be considered a 'difficult woman' -
      that's why there are so many of us.
      ...jane goodall
      {{ DiscussionBoard.errors[2694981].message }}
  • Profile picture of the author seasoned
    It's a pity that we can't say the name, but it is the only company I know that starts JK H, has the same number of letters, and how many can be tax related. 8-)

    Steve
    {{ DiscussionBoard.errors[2694976].message }}
  • Profile picture of the author heavenlygardens
    i was rippped off by one of those companys as well, for the tune, of $4500. plus our property was still levied by IRS<-- is there a place where we can report about this?
    {{ DiscussionBoard.errors[2696294].message }}
  • Profile picture of the author thunderbird
    Originally Posted by sbucciarel View Post

    Thought this was an interesting story because every time I saw the TV commercial, I thought ... What a crock of BS.



    http://www.nytimes.com/2010/10/07/bu.../07relief.html
    Lots of RipOff report coverage for American Tax Relief:
    Ripoff Report | Scams, Frauds, Reviews And Consumer Complaints On American Tax Relief
    Signature

    Project HERE.

    {{ DiscussionBoard.errors[2696328].message }}

Trending Topics