THIS BUSINESS IS NOT BBB ACCREDITED

American Tax Relief

(323) 782-1115 8383 Wilshire Blvd. Suite 900, Beverly Hills, CA 90211

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Description

This company's business is providing tax settlement services.

BBB Accreditation

This business is not BBB Accredited.

Businesses are under no obligation to seek BBB accreditation, and some businesses are not accredited because they have not sought BBB accreditation.

To be accredited by BBB, a business must apply for accreditation and BBB must determine that the business meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses must pay a fee for accreditation review/monitoring and for support of BBB services to the public.

Reason for Rating

BBB rating is based on 16 factors. Get the details about the factors considered.

Factors that lowered this business's rating include:

133 complaint(s) filed against businessFailure to respond to 68 complaint(s) filed against business9 complaint(s) filed against business that were not resolved41 serious complaint(s) filed against businessOverall complaint history with BBBGovernment action(s) against business

Customer Complaints Summary

132 complaints closed with BBB in last 3 years | 28 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising / Sales Issues 25
Billing / Collection Issues 9
Problems with Product / Service 98
Delivery Issues 0
Guarantee / Warranty Issues 0
Total Closed Complaints 132

Additional Complaint Information

Complainants generally allege that the company did not provide the tax relief they promised or advertised. Some customers said that they were told they qualified for an offer in compromise or for a specific amount of tax relief but when either did not materialize the company rejected their requests for a refund. Others allege unauthorized charge or bank account debits are made once company representatives obtained their personal information. A few complainants attempted to retract complaints because of alleged threats by the company that if complaints were pursued, they would not be eligible for refunds. The company generally responds by claiming that the customer did not supply adequate or correct information and that the figures they provide to the IRS are dictated by their guidelines. To some complaints by explaining cases are evaluated on the individuals’ circumstances and settlement offers are made by requesting an offer and compromise, penalty abatements, or viable payment plans to pay taxes. In other cases, the company blames the consumer for wanting them to assist them in evading taxes, denying that they made representations about whether or not an Offer in Compromise or abatement is guaranteed, and that the taxing authority will continue with levies or other or other collection methods until the tax debt is settled. Most often the company offers to continue with providing service but does not offer refunds as the customer requested. A few complainants are issued full or partial refunds.

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  • Government Actions

    Agency: Federal Trade Commission (FTC)Los Angele
    Description: On September 24, 2010, the Federal Trade Commission filed a complaint against this company, and it’s principals seeking that the court grant a temporary restraining order, asset freeze and other equitable relief. At the request of the Federal Trade Commission, on that same day, a federal judge in Chicago entered a temporary restraining order prohibiting deceptive claims, froze the defendants’ assets, and appointed a receiver to manage the company.

    The FTC’s complaint was filed in the public interest when the their investigation revealed satisfactory evidence that the company allegedly bilked consumers out of more than $60 million by falsely claiming it could reduce people’s tax debts. According to the FTC, the company advertised on TV, radio and Internet ads, falsely claiming it could settle consumers’ delinquent federal and state taxes for a fraction of the amount they owe. The company also falsely claimed that it could remove tax liens and stop wage garnishments, bank and tax levies, property seizures, and “unbearable monthly payments.”

    In addition, the FTC complaint also alleges the company continued its deceptive practices even after federal agents executed a criminal search warrant on the operation’s Beverly Hills business premises in April, 2010. At that time, criminal authorities seized money from bank accounts, a Ferrari from the company’s owner, and placed liens on two residences, including a $3.4 million house. At the time, one of the company’s owners was leasing six other vehicles, including a Rolls Royce, a Bentley, two Porsches, and two Mercedes-Benzes, according to exhibits the FTC filed in court.

    The company charges up-front fees ranging from about $3,200 to $25,000 for the purported tax relief services. The company’s ads include a toll-free number for consumers to call for a “free consultation.” After speaking briefly with commission-based sales people who are supposedly “tax consultants,” virtually all consumers are told that they “qualify” for a tax relief program, and that the company can help them significantly reduce their tax debts, the FTC complaint alleges.

    In reality, very few of the company’s customers qualify for the promised tax relief programs, which are available only in very limited circumstances. Most people who hire the company would qualify at most for installment payment plans, which still require payment of the full amount owed, and which many taxpayers can easily arrange by themselves.

    Many consumers are told that they qualify for an “Offer in Compromise,” which the Internal Revenue Service states is its only program that allows people to avoid paying the full amount of back taxes, and is available only in limited circumstances; taxpayers are eligible only after other payment options have been exhausted and the person’s ability to pay has been reviewed.

    Other consumers are allegedly told that they qualify for a “penalty abatement,” which the company claims will eliminate both accumulated penalties and interest stemming from late payments. However, penalty abatement is considered by the IRS only in very limited circumstances for people who have “reasonable cause” for the late payments, such as death, serious injury, natural disaster or the like. The FTC alleges that the company does not gather sufficient information from consumers to know whether they would be likely to qualify for either an Offer in Compromise or penalty abatement. The case is currently pending.
    Date of Action: 9/24/2010

    What government actions does BBB report on?

  • Advertising Review

    BBB has no information regarding advertising review at this time.

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Additional Information

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13105757
BBB file opened: 10/21/1999 Business started: 4/16/1999
Contact Information
Alexander Seung Hahn - CEO
    Il Kon Park ()Young Soon Park ()Alex Hahn (Supervisor)Bill Young (Manager)Joo Park (Owner)
Number of Employees

1

Business Category

Tax Negotiator

Alternate Business Names
American Tax ReliefAmerican Tax ResolutionTax Group Inc.
Industry Tips
Typically these companies advertise that they can settle tax related obligations for less than the amount owed. Many represent that they have attorneys or certified public accountants on staff that will work on your behalf to resolve these issues.

In some cases, the company will calculate what they believe will be the amount you save by utilizing their services. Generally the fee they charge will be based on the projected savings, while others charge a flat rate of several thousand dollars. Our complaint experience on many of these firms indicates that they exaggerate or misrepresent their ability and expertise in effecting settlements and often promise much more than they can deliver. They generally attribute their inability to obtain settlements on the fact that the customer provided inaccurate or incomplete information. None of the firms guarantee that anyone will be able to obtain a settlement of their tax debt.

We urge caution. Many taxpayers have been left with the original tax debt, along with additional interest and penalties.
If you have tax debt with the IRS, we suggest you first seek the advice of an IRS enrolled agent, CPA, or a tax attorney. You may also consult with the IRS to determine if you would qualify to file for an offer in compromise, or some other type of payment arrangement. To learn about the IRS’s rules for an offer in compromise, visit www.irs.gov.