Local podiatrist wants to warn others about tax scam

By Kelli Stopczynski (kstopczynski@wsbt.com)

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Clinton Scott, Jr. is a local podiatrist. He says he's a hard-working man, but through honest mistakes he fell behind on his taxes. He says turning to American Tax Relief for help was a big mistake. (WSBT photo)

Clinton Scott, Jr. is a local podiatrist. He says he's a hard-working man, but through honest mistakes he fell behind on his taxes. He says turning to American Tax Relief for help was a big mistake. (WSBT photo)

By WSBT News1

Story Created: Oct 14, 2009 at 3:30 PM EST

Story Updated: Oct 26, 2009 at 7:32 AM EST

ST. JOSEPH ― A local doctor says he fell victim to a tax scam. He’s sharing his story to try to keep it from happening to other people in a similar situation.

According to Dreama Jensen, the area director for the Better Business Bureau of Northern Indiana, there are more scams out there than ever before. Since the economy is bad, Jensen said illegitimate companies are looking for a quick fix — targeting people who are down on their luck.

A lot of those so-called businesses claim they can help people with real, everyday problems. What is making the scam artists successful is how they market themselves, Jensen told WSBT.

The website for a company called American Tax Relief uses a celebrity to make it seem legitimate, and even has a link to commercials that have aired on TV. Those strategies are drawing in people from all walks of life.

Clinton Scott, Jr. is a local podiatrist. He says he's a hard-working man, but through honest mistakes he fell $23,000 behind on his taxes.

“Basically they’re saying that you can reduce your taxes,” he said of American Tax Relief. “Not only will [they] get rid of the penalties, [they’ll] get rid of the interest,” he said of the companies promises.

So when Scott saw a TV commercial for American Tax Relief and thought the company's website looked legit, he gave it a try.

“At that time they negotiated. They said 'We can do it for $4700,'” he recalled, showing WSBT his paper trail with the company.

Scott said he paid them and also sent dozens of important financial documents ― like his stocks, bonds, bank and credit card statements.

When asked if he ever thought the company sounded too good to be true,” he said he did, at first.

“But the gentleman assured me. He said, you know, ‘This is 100 percent legitimate. We do this for thousands of clients. We have tax lawyers who even use these services.’”

But when the company said it didn't get his information in a timely manner, Scott showed another request from the company for $3,000 in additional fees.

That’s when he said he knew something wasn’t quite right.

Jensen says the Better Business Bureau gave American Tax Relief an “F” for failing to respond to complaints, misleading advertising and fraudulent business practices.

“What they'll tell you that they'll do is that they will work with the IRS in order to get your taxes reduced,” she explained. “Of course, they don't have the right to make that decision.”

Jensen said at this point, Scott needs to quit working with American Tax Relief. He is already out $4,700 and still owes the IRS every penny he did before.

WSBT left messages at American Tax Relief Wednesday afternoon, but our calls were not promptly returned.

Jensen said the best thing to do if you owe back taxes is go through the IRS yourself, or talk to a tax attorney or CPA.

You can also file a complaint against any company online or in person at the Better Business Bureau.
at the Better Business Bureau.

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