- A Utah woman prompted a fine against a tax-debt relief company.
- The company sent misleading flyers resembling IRS forms to over 7,000 people.
- The California-based firm agreed to a $35,000 settlement with Utah regulators.
SALT LAKE CITY — The action of a skeptical Utah woman has led the state of Utah to slap a fine totaling tens of thousands of dollars against a tax-debt relief company.
She's behind on her taxes and received several official-looking flyers in the mail telling her she can settle that debt for pennies on the dollar. However, rather than calling the toll-free numbers printed on those flyers, she contacted the Utah Division of Consumer Protection.
"They did the exact right thing," said Katie Hass, director of the Consumer Protection division.
Hass is troubled that, at first glance, the flyers the woman received look very similar to IRS tax forms.
"It did have the hallmarks of that," Hass said. "I can't explain the font, but that font – you feel like you get from a government typewriter."
What's worse is that the font used by the tax-debt relief company says.
One piece of text threatens, "If you don't act now," you may find your "checking and savings accounts" drained. Another text warns the government could "confiscate your home, car and driver's license."
The flyers also include all sorts of personal information, and there is a deadline.
There is also a disclaimer in very small print, stating that these flyers are not an official communication, and it reads, "We are a private company, not the government."
That might be enough for the tax-debt relief company to cover some bases and avoid legal trouble for fraud, but not enough to avoid trouble altogether.
"They sent more than 7,000 mailers inappropriately, illegally, into the state of Utah," Hass said.
According to Utah law, if a company offers debt consolidation services, it must be registered in the state. And after what Hass calls a "very lengthy investigation," it was determined that the company is not registered.
"These people tried to evade our subpoenas," she said.
And now a settlement has been reached.
The company, which, it turns out, is based in California and goes by several names — Nationwide Taxpayers, Inc., National Tax Experts, Tax Relief, Inc., agreed to pay $35,000.
A fine that all started with a Utah woman's skepticism.
"This consumer is such a great example of reaching out to the Division of Consumer Protection and asking the right questions," Hass said.
The KSL Investigators reached out to the company that sent the flyers to ask about the settlement. We did not hear back.
