AG, FTC sue two "IRS defense" companies

| 4/9/2002

Nevada Attorney General Frankie Sue Del Papa filed suit Feb. 4 seeking to halt the alleged deceptive trade practices of two Las Vegas-based companies, National Audit Defense Network Inc. and Tax Coach Inc. (d.b.a. Tax Ready). The Better Business Bureau of Southern Nevada recently listed one of the defendants, National Audit Defense Network, as the company for which they received the most consumer complaints in 2001.

The companies, which market nationwide, primarily via radio advertisements, offer tax-related programs and services that promise consumers thousands of dollars in tax deductions or their money back. The companies also promise a 30-day unconditional money-back guarantee, but the Attorney General cites the receipt of more than 140 consumer complaints of delayed or denied refunds as evidence of the alleged intent of both companies to harm consumers and competitors alike.

The lawsuit, the result of a joint investigation by the Attorney General's Bureau of Consumer Protection and the Federal Trade Commission, seeks a court order halting further illegal practices, requiring full restitution for all injured consumers and civil penalties in the amount of $2,500 per violation. The FTC filed a parallel case in federal court in late January and has obtained a court order placing both companies in receivership pending further action.

Consumers who wish to file complaints regarding their transactions with National Audit Defense Network or Tax Ready may contact the Attorney General's Bureau of Consumer Protection in Las Vegas at (702) 486-3132; or in Carson City at (775) 687-6300. Additional consumer protection and contact information may be found on the Attorney General's web site at