Sunday, May 22, 2011
Recently, you may have missed seeing TV commercials for Roni Deutch, who promised to help beleaguered taxpayers fight off the Internal Revenue Service. She has surrendered her law license and gone out of business amid charges that she has swindled her customers. According to the California Attorney General’s Office:
In fact, defendants did not save these particular clients any money, but merely placed them on currently not collectible status with the IRS, a kind of tax collection purgatory,” said the complaint. “Placing clients on currently not collectible status stops IRS collection efforts, but interest and penalties continue to accrue on the tax debt while the collection hold is in place ... . Moreover, the client is still liable for the entire tax debt. In fact, while the collection hold is pending, the IRS will normally also place a tax lien on the taxpayer's assets to protect the government's rights. Furthermore, if and when the client's financial situation improves, the IRS will remove the client from currently not collectible status and institute collection proceedings on the entire tax debt. In that same advertisement, defendants claim that they saved another client from having to pay the IRS a large tax debt. Though this client did settle his tax debt with the IRS, defendants inflated this client's savings by approximately $45,000.
Ms. Deutch states that she is closing down, because her firm owes $10 million, and she lacks the funds to defend herself in court. Here is a link to the story on Accounting Today with internal links to earlier stories.