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Nebraska Attorney General Warns of Tax Season Scams

By: Associated Press
By: Associated Press

Nebraska Attorney General Jon Bruning has issued a warning for residents to be aware of tax season scams.

Bruning says consumers should be wary of companies promising tax debt reduction or elimination -- especially those charging upfront fees.

Bruning says that regardless of what tax-relief companies may promise, total federal tax debt forgiveness is rare. In very limited circumstances, the IRS may offer a reduction, or abatement, for penalties.

Bruning says the Federal Trade Commission recently announced a settlement with American Tax Relief of Beverly Hills, Calif., accused of bilking consumers out of more than $100 million.

The commission also has issued a consumer warning about tax relief companies making unauthorized withdrawals from clients' bank or credit accounts for additional, undisclosed fees.

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