An FTC complaint filed against a company for misrepresenting tax relief services to customers has resulted in a temporary restraining order and the organization’s assets being frozen.

Called American Tax Relief LLC, the company used TV and radio commercials, as well as Internet advertising to claim that for a fee it can settle people’s state and federal tax debts.

To trick consumers it abused the name of a real IRS program, that allows people to pay less than what they owe, but which only applies in very limited circumstances.

“The IRS is currently accepting a fraction of back taxes owed to them (sic) for those who qualify.

“The IRS is allowing the people with delinquent tax liabilities a ONE-TIME opportunity to settle the debt ONCE AND FOR ALL.

“But at the same time, the IRS does not advertise, promote or even voluntarily suggest this program,” one of the company’s ads claimed.

People were instructed to call a toll-free hotline, where after a few questions, they were told that they qualify for either the “Offer in Compromise” program or a “penalty abatement.”

The FTC says the company charged between $3,200 to $25,000 to resolve allegedly people’s tax problems, when in fact they couldn’t do it.

According to the IRS, a penalty abatement is only considered when there are very serious reasons to justify late payments, such as natural disasters, severe injury or death.

Also, the “Offer in Compromise” program is only available to people as a last resort and after extensive background checks have been performed to determine that no other payment option remains.

In April 2010, federal agents executed a criminal search warrant at the company’s Beverly Hills office and seized funds from an account, as well as a Ferrari from one its owners.

The complaint was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division, and names American Tax Relief LLC, Alexander Seung Hahn, Joo Hyun Park, and his parents Young Soon Park and Il Kon Park, as defendants.