FTC action targets operators accused of misleading consumers with false government claims.
A federal court has temporarily stopped the operations of American Tax Service (ATS) and several affiliated entities following a Federal Trade Commission (FTC) complaint alleging deceptive tax debt relief practices.
The FTC accused ATS, its operators, and associated companies of impersonating federal agencies—including the Internal Revenue Service—and misleading consumers into paying for services that failed to deliver promised results. The defendants allegedly sent letters resembling official government notices since 2019 and made false claims that they could settle tax debts for minimal amounts.
“People trying to pay down their tax debt shouldn’t have to worry about fraudsters pocketing their hard-earned money,” said FTC’s Bureau of Consumer Protection Director Christopher Mufarrige. “The FTC will not hesitate to act to stop companies like ATS that target hard-working Americans with bogus debt relief services.”
The FTC’s complaint states that ATS violated several federal laws, including the FTC Act and Telemarketing Sales Rule, by using deceptive advertising and unlawful telemarketing tactics. Many consumers reportedly lost thousands of dollars to the scheme. The case was filed in the U.S. District Court for the District of Nevada, with assistance from the U.S. Postal Inspection Service.
As the Lord Leads, Pray with Us…
- For Director Mufarrige to be prudent as he heads the FTC’s Bureau of Consumer Protection.
- For wisdom for Chair Andrew Ferguson as he presides over the Federal Trade Commission.
Sources: Federal Trade Commission
