Liberty Tax will pay $700,000 to settle a suit brought by Washington D.C. accusing the tax preparation company of deceiving taxpayers by offering them quick cash but hiking fees for those who accepted the offer.The total includes $550,000 to be paid to more than 7,300 District residents that were said have been misled and overcharged. It must also pay $200,000 to District and end deceptive marketing and pricing tactics it used nationally.
Liberty aggressively promoted immediate handouts of $50 per taxpayer—cash in a flash—just for filing returns with Liberty. In 2022, the District’s AG sued Liberty saying while the offer had “no catch”, Liberty charged up to $200 more for tax preparation for those who those who accepted it.
