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‘Tax lady’ faces California lawsuit

SACRAMENTO, Calif. » California’s attorney general sued "tax lady" Roni Deutch for more than $34 million yesterday, alleging that her law firm regularly violates state law by making false promises that it will help people resolve disputes with the Internal Revenue Service.

Attorney General Jerry Brown contends that Deutch, who also runs ads in Hawaii, overstates her TV claims of winning tax battles with the IRS. She advertises a success rate of up to 99 percent yet successfully reduces the amount of money her clients owe in taxes in just 10 percent of cases, the lawsuit says.

"She promises to significantly reduce their IRS tax debts but instead preys on their vulnerability, taking large upfront payments but providing little or no help in lowering their tax bills," said Brown, the Democratic nominee for governor in the November election.

Deutch’s law firm, which has its headquarters in the Sacramento suburb of North Highlands, referred calls yesterday to attorney Alexander Collins, who did not immediately return a phone message from The Associated Press.

Deutch says she runs the nation’s largest tax resolution law firm. Her ads are in heavy rotation on cable television, and she has offered tax advice on national networks, including NBC, CNN, Fox and CNBC.

 

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