FTC, Nevada Will Require Tax-Relief Scammers to Pay Cash and Turn Over Assets Worth Nearly $10 Million to Settle Charges They Misled Consumers about Tax-Relief Services

The operators of a tax debt relief scheme will surrender over $8 million in cash and turn over additional assets to settle the Federal Trade Commission and State of Nevada's charges that the defendants pocketed millions from consumers by impersonating federal and state government tax authorities and promising tax debt relief.

Under the proposed order, Terrance Selb and Tyler Bennett, operators of American Tax Service (ATS), will also be banned from debt relief services, tax preparation services, telemarketing and impersonation of individuals, governments or businesses.

In October 2025, a federal court temporarily halted the alleged tax debt relief scheme operated by Selb and Bennett, as well as seven affiliated entities. The FTC alleged they impersonated government agencies, including the Internal Revenue Service, deceptively promised tax debt relief, sent threats to consumers about their debts and pocketed tens of millions of consumers' dollars.

ATS and its operators claimed they could settle taxpayers' back taxes for "pennies on the dollar" or for only a "fraction" of what taxpayers' owed, often making these claims before evaluating the taxpayer's circumstances, according to the FTC. The Commission presented evidence in court showing that the company's operators targeted older consumers in upselling fictitious add-on services, often for tens of thousands of dollars at a time.

Under the proposed order, Selb and Bennett are required to turn over cash and assets, which will be used to return money to consumers. The order also bans them from:

• Advertising, marketing, promoting, offering for sale, providing or assisting in any debt relief product or service;
• nearly all outbound telemarketing;
• Providing tax preparation services, among other related activities;
• Individual, government or business impersonation; and
• Misrepresenting material facts about any products or services.

The proposed order with Selb and Bennettimposes a judgment in the amount of $77.7 million which reflects the amount the defendants took from consumers from February 2022 to 2025. Except for the approximately $8 million cash and other surrendered assets, the full judgment is suspended based on the defendants' inability to pay. The full judgment will become due immediately if the defendants are found to have misrepresented their financial condition.

Litigation is ongoing with corporate defendants American Tax Service LLC, American Tax Solutions, American Tax Solutions LLC, ATS Tax Group LLC, Elite Sales Solutions also d/b/a American Tax Service, GetATaxLawyer.com LLC, TNT Holdings Group LLC, TNT Services Group LLC and TNT Tax Associates Inc. The Commission moved for default judgment against these defendants on May 7, 2026.

The Commission vote approving the filing of the proposed order was 2-0. The FTC filed the proposed order in the U.S. District Court for the District of Nevada.

NOTE: Stipulated final orders or injunctions, etc. have the force of law when approved and signed by the District Court judge.

The staff attorneys on this matter are Simon Barth and James Evans in the FTC's Bureau of Consumer Protection.