The Federal Trade Commission is suing a supposed “tax debt relief” company over claims it was falsely impersonating government agencies, threatening consumers and pocketing “tens of millions of consumers’ dollars.”
Now a federal court has temporarily halted the company from falsely impersonating government agencies, according to the FTC.
The FTC recently filed a joint lawsuit with the State of Nevada against American Tax Service as well as its owners and seven affiliated parties for making false claims that they could help tax payers with their debts.
Instead, the service exaggerated tax payers debts, coaxed them into paying for services that promised debt release and falsely claimed the IRS was investigating them.
Read more: Major auto parts company sues CEO amid $10B bankru

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