IRS slaps ‘Tax Lady’ with $183,000 tax lien

SACRAMENTO, Calif. – In another sign of the “Tax Lady’s” financial woes, attorney Roni Lynn Deutch has been slapped with a $183,000 federal tax lien, according to recent filings by the Internal Revenue Service.

The lien against Deutch, who built a $25-million-a-year tax resolution law firm that promised clients relief from the IRS, was filed May 9 in Placer County, Calif.

A few days later, Deutch shuttered her law firm amid state allegations that she cheated clients out of millions, owed hundreds of thousands of dollars in refunds and had destroyed millions of pages of documents in violation of court orders.

In a May 12 news conference, Deutch said she was broke. Her firm owes $10 million and she personally owes $5 million to creditors, Deutch said.

Deutch’s previous attorney, James Banks, quit representing her in early May, saying he hadn’t been paid.

Subsequently, court-appointed receiver Scott Sackett verified Deutch’s claim, finding more than $3 million in liabilities, including $2.6 million to vendors and business partners and $1.1 million in advertising expenses.

In April, a Sacramento Superior Court judge froze her assets.

Beyond her financial woes, Deutch faces a $34 million lawsuit filed in August 2010 by then-Attorney General Jerry Brown for allegedly swindling her clients.

She also has been accused by the attorney general’s office of contempt of court and faces possible jail time for allegedly shredding documents and diverting assets to family, friends and business associates.

Meanwhile, her chain of 70 franchised Roni Deutch tax centers in 23 states operate independently and are allowed to remain open.