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“Tax Lady’ Roni Deutch was slapped with a $34 million lawsuit for fraud by California Attorney General Jerry Brown on Monday. The suit alleges Deutch’s law firm violated state law by making false claims of winning tax battles with the IRS.
According to Brown, who is the Democratic nominee for governor of California, Deutch’s firm advertises a success rate of 99 percent in tax disputes with the IRS, but in fact the amount of money her clients owe in taxes is reduced in just 10 percent of cases.
“She promises to significantly reduce their IRS tax debts, but instead preys on their vulnerability, taking large up-front payments but providing little or no help in lowering their tax bills,” Brown said.
Deutch is a frequent contributor on tax matters on such national networks as NBC, CNN, Fox and CNBC. Her firm is headquartered in suburban Sacramento. The Associated Press reports calls made to Deutch’s firm were forwarded to attorney Alexander Collins and were not returned immediately.
According to the suit, Deutch’s law firm makes at least $25 million annually and spends $3 million on advertising. It is seeking a preliminary injunction to block what it says are unfair business practices and false advertising, the AP reports.
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