According to an article in the Star-Telegram, Texas Attorney General Greg Abbott is filing a lawsuit against JK Harris & Co. accusing the South Carolina-based company of misrepresenting its ability to help consumers resolve unpaid tax debts .

The article said:

A lawsuit contends that JK Harris & Co. misstated employees’ expertise, overstated its ability to clear up debts to the Internal Revenue Service and accepted large upfront fees knowing it could not reduce customers’ tax liabilities.

In June of 2008, the company settled other tax scam accusations with 18 other states by paying $1.5 million in restitution and changing its advertising message.

American taxpayers need to be extremely careful with companies claiming to have the power to reduce tax debt. These companies are usually exaggerating their claims and end up bilking taxpayers out of thousands of dollars in fees while doing nothing to reduce their tax obligation. It is true that the IRS sometimes settles tax debt; but only under certain circumstances. Using bankruptcy, many taxpayers are able to repay taxes or even discharge tax debt under specific conditions. Tax time is here already. Many taxpayers do not have the money to pay Uncle Sam. Are you a taxpayer struggling to repay tax debt? If so, and you have significant about of back taxes that you cannot afford to repay, you may want to consider filing bankruptcy to discharge or repay those tax debts. Speak with a Dallas-Fort Worth bankruptcy attorney to find out if bankruptcy is appropriate for you tax debt problem.