"Tax Lady" Sued By State of California for $34M

September 3, 2010

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California Attorney General Jerry Brown is calling Roni Lynn Deutch, the self-proclaimed "Tax Lady," a fraud. Brown and the state of California are suing Deutch and her firm, alleging that the 46-year-old defrauded thousands of clients out of a total of $34 million. The suit demands that Deutch return the money to her clients and also put an immediate stop to all advertising, the very vehicle that has made her so famous. Her office estimates she spends more than $3 million per year on advertising campaigns.

Brown says that Deutch's promises to rid people of their IRS problems were completely false, and that her firm's rates of up to $4,700 per client usually did little to help deliver relief to clients with tax problems. Brown's office claims that barely 10% of Deutch's clients ever had their IRS debts successfully resolved. Further, the suit says, when customers did demand their money back, the firm would show them trumped up billing statements with inflated hours to justify the amount of money spent, rarely ever refunding money to clients.

When you're facing IRS problems, bankruptcy and outstanding debt, it pays to hire a professional lawyer who can give you one-on-one attention for your case. Lawyers are responsible for looking out for your best interests and if you're already in financial trouble, the last thing you need is a lawyer who is only going to take your money and run. Be sure to check out any lawyer you're interested in using on the American Bar Association website or through other clients who have used their services.