FTC action targets operators accused of misleading consumers with false government claims.
A federal court has temporarily stopped the operations of American Tax Service (ATS) and several affiliated entities following a Federal Trade Commission (FTC) complaint alleging deceptive tax debt relief practices.
The FTC accused ATS, its operators, and associated companies of impersonating federal agencies—including the Internal Revenue Service—and misleading consumers into paying for services that failed to deliver promised results. The defendants allegedly sent letters resembling official government notices since 2019 and made false claims that they could settle tax debts for minimal amounts.
“People trying to pay down their…