"Tax Lady" Roni Deutch sued by California Attorney General

Roni Deutch Sued by California AG, Tax Girl (Aug. 24, 2010) notes that the pervasively familiar ads of the Tax Lady have led to a California suit (link to press release, which includes link to complaint and preliminary injunction action).  The release claims that Roni Deutch "promises to significantly reduce [clients'] IRS tax debts, but instead preys on their vulnerability, taking large upfront payments but providing little or no help in lowering their tax bills" and seeking $34 million for restitution to those clients.  Further, it says that Deutch uses misleading ads featuring clients claiming that they have been saved from paying thousands to the IRS when in fact the featured clients still owe the full amount of taxes (plus penalties and interest).  The suit also claims that Deutch's firm uses high-pressure sales tactics and misrepresent the firm as having a 99% success rate, when it is really 10%.   The suit also claims that Deutch's firm uses false billing statements to hold onto large retainers, even when she does no work on their behalf.  The Attorney General's press release notes that "[h]undreds of clients have filed complaints with the Attorney General and other government agencies, describing Deutch's failure to reduce their IRS debts as shye advertised and her refusal to refund retainers of as much as $4,700."