Calif. Attorney General Sues "Tax-Lady" Roni Deutch For $34 Million

By: Naimah Jabali-Nash
Topics: Daily Blotter

Roni Deutch (Personal Photo)

SACRAMENTO, Calif. (CBS/AP) "Tax lady" Roni Deutch is being sued for more than $34 million by California Attorney General Jerry Brown. On Monday, Brown accused Deutch's law firm of repeatedly violating state laws by fabricating promises of helping people resolve disputes with the Internal Revenue Service.

According to Brown, Deutch exaggerates winning statistics with the IRS in TV commercials in which she contends she can find "hidden deductions" and give clients "the maximum refund." The lawsuit states that Deutch advertises a success rate of up to 99 percent, but only reduces the amount of money her clients owe in taxes 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," says Attorney General Jerry Brown.

Deutch claims to run the nation's largest tax resolution law firm, which has its headquarters in Sacramento, Calif.

Brown's lawsuit seeks a preliminary injunction to stop what it alleges are deceitful business practices and false advertising. The case requests unspecified civil penalties in addition to $33.9 million in restitution for the hundreds of clients Brown claims filed complaints alleging they were defrauded. Deutch's firm collects retainers of up to $4,700 and does not return the money when it fails to win tax settlements, according to the suit.

In Dec. 2006, Deutch settled a lawsuit filed by New York City's Department of Consumer Affairs that accused the boisterous lawyer of misleading consumers with her advertising. She agreed to pay $300,000, including $100,000 in fines and $200,000 in restitution to clients.

According to the lawsuit, Deutch's firm makes at least $25 million annually and allocates $3 million for advertising.

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by holosys May 13, 2011 7:48 PM EDT: I almost fell for the same tax scam by a prominent attorney who has practiced for over 30 years. The outrageous legal fees alone and several thousand dollar retainer (which is just the first retainer, implying I could be bled dry with more retainers to keep him going) that attorney was charging, would have costed me several times more than what I had to gain in tax savings. It turns out I can deal directly with the IRS and save the same money!; Reply to this comment


by joemas01 August 26, 2010 1:18 PM EDT: In general, when considering having any person or company represent you, please review their site carefully and look for statements that seem too good to be true, or seem to only have the purpose of making you think that they have an unfair advantage over the competition because of size, location, claim they are the best, the only ones who can legally protect you, create a fear that only they can solve, or any other tactic that their sales people come up with to earn higher commissions.
For more information about how to choose a tax representative visit: http://www.taxproblem.org/tax-advisor.html; Reply to this comment


by Wildwood1966 August 24, 2010 3:04 PM EDT: well what do I know - I thought she was "local" here to ATL - perhaps she should give up her advertising budget for claims!!!; Reply to this comment