The Federal Trade Commission and the State of Nevada announced on June 2 that the operators of a tax debt relief scheme will surrender over $8 million in cash and additional assets to settle charges alleging they misled consumers about tax-relief services. The settlement comes after allegations that Terrance Selb and Tyler Bennett, operating as American Tax Service, impersonated federal and state government tax authorities while promising fraudulent tax debt relief.
Under the proposed order, Selb and Bennett are banned from providing debt relief services, tax preparation services, telemarketing, or impersonating individuals, governments, or businesses. In October 2025, a federal court temporarily halted their operations along with seven affiliated entities. The FTC said the defendants falsely claimed they could resolve taxpayers’ back taxes for significantly less than owed without evaluating individual circumstances. Evidence presented in court showed that older consumers were targeted with fictitious add-on services costing tens of thousands of dollars.
The order requires Selb and Bennett to turn over cash and assets for consumer redress. It also prohibits them from advertising or promoting any debt relief product or service; engaging in most outbound telemarketing; providing tax preparation services; impersonating others; or misrepresenting material facts about products or services.
A judgment of $77.7 million was imposed against Selb and Bennett, reflecting consumer losses between February 2022 to 2025. Except for approximately $8 million in cash and other surrendered assets, the remainder is suspended due to inability to pay but becomes immediately due if financial misrepresentation is found.
Litigation continues against corporate defendants associated with American Tax Service. The Commission moved for default judgment against these companies on May 7, 2026. The FTC filed the proposed order in U.S. District Court for the District of Nevada following a unanimous vote by commissioners.