Action 13 Consumer Reporter Jeff Ehling first investigated this issue last month. Several consumers complained LBS Tax Service promised to file taxes for $75 but ended up charging hundreds for the service.
Texas Attorney General Greg Abbott's office says that same thing has happened to other consumers.
Monday, the state froze the assets of LBS Tax Service and issued a temporary restraining order preventing the firm filing any more tax returns.
The state also claims some of the work done by LBS Tax Service was riddled with errors.
LBS Tax Service employees said they could not comment on the state's order.
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