A federal court has temporarily stopped American Tax Service (ATS) and its operators, Terrance Selb and Tyler Bennett, from conducting business following allegations by the Federal Trade Commission (FTC) and the State of Nevada. The FTC claims ATS and its affiliates impersonated government agencies, including the Internal Revenue Service, and misled consumers with promises of tax debt relief.
According to the FTC’s complaint, ATS and its operators sent deceptive and threatening letters to consumers, falsely claiming they could resolve back taxes for significantly less than owed. These promises were often made before evaluating individual taxpayer circumstances. The FTC alleges that ATS rarely delivered on these promises and often refused refunds to dissatisfied customers.
“People trying to pay down their tax debt shouldn’t have to worry about fraudsters pocketing their hard-earned money,” said Christopher Mufarrige, FTC’s Bureau of Consumer Protection Director. “The FTC will not hesitate to act to stop companies like ATS that target hard-working Americans with bogus debt relief services.”
Since at least 2019, the defendants are accused of using telemarketing calls and online advertisements to reach consumers. Some consumers reported being told that the IRS was investigating them or had marked their accounts as “high risk.” The complaint states that after consumers paid for ATS’s services, little or none of the promised work was performed.
The FTC alleges that ATS engaged in several illegal activities, such as impersonating government tax authorities, making false promises about reducing tax debt, and violating telemarketing regulations. The actions are said to have breached the FTC Act, Gramm-Leach-Bliley Act, Telemarketing Sales Rule, and Impersonation Rule. The State of Nevada also alleges violations of state law.
The complaint was filed in the U.S. District Court for the District of Nevada against multiple business entities associated with ATS and the two individual defendants. The Commission’s vote to file the complaint was unanimous.
The staff attorneys for this case are Simon Barth and James Evans from the FTC’s Bureau of Consumer Protection.
The FTC reminds consumers that it will never demand money, make threats, ask for money transfers, or promise prizes. More information for consumers is available at consumer.ftc.gov and fraud can be reported at ReportFraud.ftc.gov.
