circular 230 and radio advertising

[sdarave]

I have a question about a radio ad I've been hearing---The ad is to get folks with an income of 30K+and a pay stub to call a number. The GUARANTEE they can find AT LEAST 5K in deductions over the past three years or the service is free. Just for the record, I fully intend to call them myself as a mystery shopper.
So, here's the question. Doesn't circular 230 specifically forbid such advertising?
I think this just screams SCAM! Whatcha think?

[RWG1950]

Whenever I see or hear an advertisement of this type, my hand reflexively drops to my side and covers my wallet.

[Anarchrist]

What part of 230 do you think it violates?

[Rapid Robert]

So, here's the question. Doesn't circular 230 specifically forbid such advertising?

Whether it does nor not, Circ 230 only applies to a minority of tax preparers. The vast majority of tax preparers are unregulated at the federal level and are not subject to Circ 230. Only EAs, CPAs, attorneys, and AFSP participants need to pay any attention.

[TaxGuyBill]

The GUARANTEE they can find AT LEAST 5K in deductions over the past three years or the service is free.

They may find deductions, but that doesn't necessarily mean it would reduce a taxpayer's tax. For example, they may "find" some Itemized deductions such as the State income tax deduction. But the Standard deduction would likely be larger, so "finding" $5000 of deductions won't do anything.

[sdarave]

Anarchcrist: § 10.30 Solicitation. (a) Advertising and solicitation restrictions. (1) A practitioner may not, with respect to any Internal Revenue Service matter, in any way use or participate in the use of any form of public communication or private solicitation containing a false, fraudulent, or coercive statement or claim; or a misleading or deceptive statement or claim.
Seems misleading and/or deceptive to me.

[Anarchrist]

So why do you think it violates that?

[Rapid Robert]

Upon re-reading the OP, I have to agree with Anarchrist. "The GUARANTEE they can find AT LEAST 5K in deductions over the past three years or the service is free." There doesn't seem to be anything false or misleading about such a guarantee. It sounds similar to H&R Block's Second Look® Review, which has been advertised for well over a decade now without any blowback from IRS or lawsuits.

[sdarave]

Ok, so I listened carefully to the ad. They say "we guarantee you will receive a refund of at least five thousand dollars" I think that's the part I find questionable. Thanks for the input!

[Dude]

Ok, so I listened carefully to the ad. They say "we guarantee you will receive a refund of at least five thousand dollars" I think that's the part I find questionable. Thanks for the input!

That is completely different than saying We guarantee to find you $5,000 in deductions! That is a throwback to the less regulated days.