Penalty Amount
$8,000,000
The FTC and State of Nevada settled charges against the operators of American Tax Service for impersonating federal and state government tax authorities and making false promises of tax debt relief. The defendants will surrender over $8 million in cash and assets and are banned from debt relief services, tax preparation, telemarketing, and impersonation.
The defendants must surrender over $8 million in cash and additional assets to be used for consumer refunds. They are permanently banned from debt relief services, tax preparation services, telemarketing, and impersonation of individuals, governments, or businesses. A $77.7 million judgment is suspended based on inability to pay.
In-house legal teams should review vendor agreements with tax relief or debt settlement companies to ensure compliance with FTC rules on telemarketing, deceptive advertising, and impersonation. Key clauses to examine include representations and warranties regarding compliance with the FTC Act and Telemarketing Sales Rule, indemnification for deceptive practices, and termination rights for regulatory violations. Additionally, contracts should prohibit vendors from impersonating government entities and require clear disclosures about services.
Entity
American Tax Service (ATS)
Industry
OtherOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/06/ftc-nevada-will-require-tax-relief-scammers-pay-cash-turn-over-assets-worth-nearly-10-million-settle
2523026atstro
https://www.ftc.gov/system/files/ftc_gov/pdf/2523026atstro.pdf
ATS StipulatedOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/ATS-StipulatedOrder.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"operators of American Tax Service (ATS)"
"will surrender over $8 million in cash"
"imposes a judgment in the amount of $77.7 million"
"impersonating federal and state government tax authorities and promising tax debt relief"
"Federal Trade Commission and State of Nevada"
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