In the last year we’ve seen major tax resolution firms run into trouble, fold or fail. Between Ronnie Deutch, JK Harris, and now TaxMasters it’s been a bad year for the tax resolution debt relief business.
Again it seemingly comes down to firms charging big advanced fees for services, spending the money, but not delivering on the services promised. This should not be a reflection that good tax help is beneficial and a blessing to find.
As ABC News in Houston, Texas has reported, the doors to TaxMasters are locked. – Source
Within the past month, the landlord that owns the building where the company is headquartered sued alleging that Taxmasters failed to pay its January rent. A contracting firm handling construction work at the office also sued the company alleging it had not been paying its bills. Videos on the company’s website displaying the well known TaxMasters advertisements featuring Cox were no longer working. Recent filings with the Securities and Exchange Commission carry a warning that the company’s earlier financial statements are being amended and should no longer be relied upon.
In the TaxMasters Chapter 11 bankruptcy filing, they state they have between 1,000 to 5,000 creditors, have $0 to $50,000 in assets and $1 million to $10 million in liabilities. – Source