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TaxClosers / Blog

What the FTC tax relief case means for you.

In October 2025 the FTC and Nevada sued American Tax Service. The complaint said its mailers looked like IRS letters and promised settlements before any review.

October 16, 2026

The complaint says the mailers were made to look like real IRS letters and posed as government agencies. It says the firm promised to settle debts for a small part of what was owed before it looked at the case, and charged an upfront fee of about $250.

The case settled in 2026. News reports say nearly $10 million in assets were turned over and the firm was banned from selling tax relief.

What to take from it:

  • Never look or sound like the IRS. Say your firm name first on every call.
  • Never promise a result or an amount saved.
  • Never tell someone they qualify before you review their finances.
  • Put your fees in writing before you take money.

TaxClosers buyers agree to these rules when they sign up.

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