Bonnie Petrie and Mike Barajas

Texas AG Sues Fla.-Based Tax Prep Service for ‘Deceptive Practices’

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(Credit: Getty Images)

(Credit: Getty Images)

Not all tax preparers are created equal. One of them is in big trouble with the state attorney general. News 92 FM’s Carolyn Campbell explains.


Attorney General Greg Abbott is suing LBS Tax Services – also known as Loan Buy Sell Tax Services – for violating the Texas Deceptive Trade Practices Act. Customers complain the Florida-based company advertised tax preps for $75 bucks, but when they got their IRS refunds, hundreds of dollars had been deducted without their authorization.

Related: Get Free Tax Help

According to court documents, LBS Tax Services aggressively solicited Houston customers at Walmart stores and even at the Martin Luther King Jr. parade. Customers also say LBS made a number of errors on their tax returns.

Abbott advises consumers to check out the tax preparers credentials, make sure there are no complaints with the Better Business Bureau. It is also best to read the tax return carefully before signing it and to be certain the business is open year round in case there are problems.

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