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D.C. Sues Liberty Tax for Misleading Low-Income Customers

Sept. 22, 2022, 9:28 PM

Washington, D.C., is suing Liberty Tax for misleading low-income taxpayers, claiming that the national tax preparation service presented deceptive offers to district customers.

Attorney General Karl Racine said the preparation service aggressively advertised a “no catch” $50 cash offer known as “Cash in a Flash” to low-income tax filers and then increased the cost of tax preparation for those who accepted the offer. Racine’s office said Liberty, which he said has four locations in the district, provided over 12,000 of these offers to district taxpayers from 2015 to 2021, overcharging the city’s most vulnerable residents.

“This practice ...