Liberty Tax Entity Settles Consumer Deception Suit for $750,000

Washington, D.C., and an entity doing business as Liberty Tax Service came to a settlement agreement Wednesday in which the tax preparer will pay $550,000 to certain District of Columbia residents and $200,000 to the city following allegations of misleading and overcharging customers.

JTH Tax LLC, which conducts business as Liberty Tax and offers tax preparation services, was accused by D.C. of promoting a “no catch” $50 cash offer dubbed “Cash in a Flash” to low-income tax filers and then increased the cost of tax preparation for those who accepted the offer. JTH Tax denies the allegations ...