Taxmasters reviews and complaints
The good, the bad, and the ugly - discover what customers are saying about Taxmasters
Welcome to our customer reviews and complaints page for Taxmasters. We understand that making informed decisions about where to invest your time and money can be challenging, which is why we've created this platform for our community to share their honest feedback about their experiences with Taxmasters.
On this page, you'll find a comprehensive collection of reviews and complaints from real customers who have used Taxmasters's products or services. Our reviews are authentic and unbiased, providing you with a complete picture of the company, its products or services, and their customer service.
Whether you're considering doing business with Taxmasters, or you've already had an experience with them, our community's reviews and complaints will give you a valuable perspective on what to expect. Our goal is to help you make informed decisions about where to invest your time and money, and we hope that our platform will be a valuable resource for you.
Please feel free to browse our reviews and complaints and share your own experience with Taxmasters. Your feedback is an important part of our community and will help others make informed decisions.
took money to solve our tax problems with no results.
We had money problems due to my injuries and disability's which led a foreclosure on our house. We lost everything and then got a very big tax bill from Ct & the IRS. We hired Tax Masters who wanted their money upfront but promised us a reduced tax bill. We ended up after years of back and forth with them for more and more info and then they presented the IRS with a ridiculous offer which was of course denied.
They took our money knowing that they couldn't get our taxes reduced.
The complaint has been investigated and resolved to the customer’s satisfaction.
TaxMasters Class Action
The Spencer Law Firm has filed a class action lawsuit against TaxMasters, and we are investigating TaxMasters' business practices with regard to the following issues:
1. Whether TaxMasters' performance of its work is consistent or inconsistent with the representations it makes in its initial telephone consultations with its customers; and
2. How TaxMasters actually performs its refund policy with customers who refuse to sign the TaxMasters written contract.
If you have any information that relates to these issues, we would like to speak with you. Please contact our office at the telephone number listed below, at 888-237-4LAW, or via email at [protected]@spencer-law.com.
Kimberly A. Robards
Legal Assistant
The Spencer Law Firm
4635 Southwest Freeway, Suite 900 | Houston, Texas 77027
Ph: [protected] | Fx: [protected] |
The complaint has been investigated and resolved to the customer’s satisfaction.
Tax Masters is a complete RIP OFF! DO NOT do it! It is all lip service and they will not follow thru with any promise that they make!
TaxMasters Investigation
The Spencer Law Firm is investigating TaxMasters on behalf of our clients. We are interested in speaking to residents of Texas and other states about their experiences with TaxMasters. If you'd like to help our investigation, please contact Kim Robards at [protected] or via email at [protected]@spencer-law.com.
Thank you,
Kimberly A. Robards
Legal Assistant
The Spencer Law Firm
4635 Southwest Freeway, Suite 900 | Houston, Texas 77027
Ph: [protected] | Fx: [protected] |
The complaint has been investigated and resolved to the customer’s satisfaction.
Fraudulent Acts
I sent this complaint to CNN and hope that they may be able to help in that they can inform Taxmasters they are aware of their corrupt, deceiving, fraudulent tactics and acts. They are not acting for the good of the people. People like me sincerely believe organizations like this, we have no money to turn to high priced attorney's and hope with all we have that they will be sincere and helpful in everyway they know. I don't understand how people can be so hurtful and dishonest. I need the $1, 800.00 I paid Taxmasters. I need to pay the IRS. They never contacted the IRS, Tereasa Isom and Zankie Johnson lied to me. Joshua E. said I would probably be paid Wednesday, August 25, 2010 and Ms. Jessica Gonzales doesn't answer the phone and when she does, its all lies, just buying time for the next dept. to tell you more lies. It is my opinion that these employees are uneducated because educated people would not work for an organzation that is so fraudulent. After three weeks any organization should be able to refund you your money, they can't be bigger than the IRS. Why are they allowed to advertise, knowing they are so corruptive. Tereasa Isom informed me that we owed back taxes - 2002 - and she was looking at the return as we spoke, she could even tell me the date I sent in my return, I responded - Oh yeah, whats the date, cuz I have the 2002 taxes right in front of me, she then said, Oh, aaahhhh, I must be looking at something out. I responded back, yeah thats what I thought. They are nothing but a bunch of ignorant liars. I called and cancelled my services and talked to the IRS, I worked out a plan to pay the IRS back. So Taxmasters didn't do a thing for me. I just want my refund of $1, 800.00. Confirmation - 452bb
To Whom It May Concern:
You have a fantastic station. I get teased about watching this channel 24/7. I love the people that are on this channel. I don't understand why a great station like CNN allows such a deceiving, fraudulent organization like Taxmasters advertise. My husband and I are retired, we were audited by the IRS last year, and owed them $16, 000.00. After figuring and refiguring we end up paying them back $6, 000.00. This year we owe them another $6.000.00. I saw an advertisement/Taxmasters and called them to employ their services because it was on CNN, I trusted these people only because of the greatness of the station. They didn't do a damn thing for us after 5 months, they informed me that the holdup was my 2002 returns because I owed them for back taxes for 2002. Called the IRS, no such thing, the IRS informed me that the 2002 year was not even in the system. Now I have waited over 3 weeks for a refund only to be transferred from one dept. to another, and from one ### to another. First having to wait for the person that handles the refunds because that person was on vacation, then having to wait in turn for my request/acct. to come up. I got on the Internet and found all the complaints of people that have lost money because Taxmasters done nothing for them and now owe more to the IRS. I know that they are only one of your accounts, but this account is screwing people that need help with the IRS, they don't need more corrupt, irresponsible, deceitful, dishonest and fraudulent people to add to their hardship. If you don't know this, I hope this has been informative, if you do know how corrupt, deceitful, dishonest and fraudeulent they are, then I guess you're station is just as fraudulent as Taxmasters, if you can help the people they screwed by correcting Taxmaster's tactics or fraudulent acts, please do, we will forever be grateful for your efforts. Gloria Romero
cc: Copy to CNN
The complaint has been investigated and resolved to the customer’s satisfaction.
ripped me off
My husband passed away, while I was getting my paperwork in order to file my taxes that year, I discovered that he had not filed in 10 years, I lay on the couch not knowing what to do for 2 days..I saw a commercial on tv for Taxmasters, this was In March of 09, I called and yes the man I spoke to on the phone was very nice and convenced me to let them solve my problem and get my tax bill down for me. He told me the cost and chaged my card half one day and half the next day, which totaled over the 7 months right at $7000.00. and at first it seemed they were working on my case, they asked for everything to prepare my taxes, and they did prepare my taxes (H&R could have done that for alot less) and after I received them in the mail I was told I had to go in person and take them to the nearest IRS office which was 2 hours away from me. I took them and that started the letters from the IRS and the state I live in, when I called them they insisted I do not reply or contact anyone but them, Taxmasters had me sign a power of attorney to them to take care of all tax issues and letters, of course I am still thinking they are working for me, I got letters that the IRS is going to put a lein on my house and car, I contact taxmasters and they said dont worry about that they are trying to scare you, it did. I sent the IRS the money from that letter which was a fraction of what I owed but I didnt want a lein on anything I own. during the months of March 09, and Oct 09 this is pretty much all that went on, when I went to file my taxes for 2010, I went elsewhere and with 1st time home buyer refund and everything else my refund was 13, 000.00 of course the IRS kept it all to pay for back taxes, which I knew they would but at that point after hmmmm 4 months of nothing from Taxmasters they called me, and was just checking to see how everything was going for me, at that point I went off on the lady that called, saying how dare you call me when I see the light at the end of this tunnel and I only owe IRS 1300.00 dollars of almost 30, ooo that now you are calling me. when I asked them why are there so many complaints against your company, they told me oh that is from people we began there service and they stopped paying for it so we stopped working for them, which I now know was a complete lie because I paid all they asked and all I got was my taxes prepared, as I said in the begining of this letter, I could have paid ALOT LESS to H&R Block to have done what I got from TAXMASTERS, so in warning to anyone thinking about using this company...DO NOT...you wont get anything done and you will still owe the IRS the full amount and end up paying alot to taxmasters for NOTHING...I believe truely they took advantage of me, a person who just lost her husband of 27 years, and was in a position with IRS that I knew nothing about, and I was at a VERY VERY low place in my life...I have to say I have completley paid off the IRS, and the state I live in with out any dedicuctions or help from TAXMASTERS...hire a private lawyer and get your taxes settled...
I and my Wife have also been scammed by this crooked Executive of Tax Masters.They are Fraudelant
and misleading .Because of delays and their devious avoidance 'after 3 yrs. we now finally communicted
with the IRS and owe over twice the amount. )penalties and interest accreued by delays caused by
Taxmasters. I hope the Attourney General investigates this fraudelant company and its owner, Patrick Cox
I am sure there are hundreds of other NJ victims scammed by this company. Attorney General.we need
your help!
Scam
IF ANYONE IS INTERESTED IN A CLASS ACTION LAWSUIT PLEASE POST IT ON THIS FORM. TAXMASTERS MUST BE HELD ACCOUNTABLE FOR THE MANY SCAMS THEY HAVE DONE.
I contacted TaxMasters (TM) because the State of Illinois was auditing my company for a Used Tax which is purchasing materials out of state in which Illinois wants revenue for. Which this is too a complaint for another form. Anyway, when I contacted TM and I was told that they do handle state audits and this is something they do all the time. The sales person on the phone claimed I would have both a tax attorney and a CPA assist me at my location with this audit. I was told that the $9, 750. included these services. He continued to tell me that they have affiliates all over the country including Illinois and that the tax attorney and CPA that they provide will sit with the state auditor to ensure a proper audit. Once they charged my credit card they did email a power of attorney for me to sign. Upon my signature, TM told me to stop communicating with the auditor and they would handle everything from there. I explained to TM the auditor was scheduled to come out in 2 days and asked them if they were going to contact her. They claimed they would and never did. I emailed the auditor because I didn't want her to make the dive if TM was not going to be here and figured TM would contact her to schedule a date. The auditor responded to my email and told me TM never contacted her. I called TM to ask what they were going to do and TM told me simply don't answer the door when she arrived. I told TM that I didn't feel that was very professional and then they told me to just show the auditor the power co attorney when she arrived. I further expressed my frustration with TM and asked them why they never contacted the auditor when the said that have. TM told me to just email the auditor the power of attorney and have her contact them. So I took their advice and emailed the auditor the power of attorney and immediately the auditor responded that it was incorrect and told me the specific form she needed. Once again I called TM to follow up with them and told them that the power of attorney was not right and that all of the information on it was wrong. Of course TM claimed they would handle it and never emailed me the proper forms and never contacted my auditor. Upon my final conversation with TM I found out that they wanted me to box up and mail all 3 years of my records and that they had no intentions on sending anyone to my location. But if I wanted them to fly someone out it would be an extra. This company is a total scam and there is much much more. I am still fighting this with my credit card and unfortunately I think it may go their way. I will file a lawsuit upon my credit cards decision to pay TM.
IF ANYONE IS INTERESTED IN A CLASS ACTION LAWSUIT PLEASE POST IT ON THIS FORM. TAXMASTERS MUST BE HELD ACCOUNTABLE FOR THE MANY SCAMS THEY HAVE DONE.
I gave them 2500 bucksand it took for me to ask for my money back before they sent me anything...it took like 6-7 months before a reply, i couldnt get in touch with the person who was assigned to my case and when they finally did send me something...it was a letter saying there was nothing they could do for me and that was it...no refund, no anything...just a big screw off
The PA class action suit has made it around the arbitration clause in the contract. TaxMasters filed a motion to compel arbitration, which was denied on 3/17/11.
Two federal lawsuits have been filed against TaxMasters and Patrick Cox personally:
Wells et al v. TaxMasters, Inc et al, filed 7/2/2010 regarding Fair Labor Standards
Antkowiak v. Taxmasters et al, filed 7/7/2010 regarding Fair Debt Collection
Well it finally happened -- government action against TaxMasters:
http://www.oag.state.tx.us/oagnews/release.php?print=1&id=3328
FOR IMMEDIATE RELEASE
May 13, 2010
www.texasattorneygeneral.gov CONTACT
Press Office at
[protected]
Houston-based "Tax Resolution" Firm Charged With Unlawful Conduct, Misleading Customers
Texas Attorney General files enforcement action against TaxMasters, Inc.; cites nearly 1, 000 complaints about defendants’ conduct and business practices
HOUSTON – Texas Attorney General Greg Abbott today charged Houston-based TaxMasters, Inc., and its chief executive officer, Patrick Cox, with multiple violations of the Texas Deceptive Trade Practices Act and Texas Debt Collection Act.
According to the state’s enforcement action, the defendants unlawfully misled customers about their service contract terms, failed to disclose its no-refunds policy, and falsely claimed that the firm’s employees would immediately begin work on a case – despite the fact that TaxMasters did not actually start to work on a case until its customers paid in full for services, even if that delayed response meant taxpayers missed significant IRS deadlines.
“In the midst of a national economic downturn, TaxMasters used a nationwide marketing campaign to offer services for distressed taxpayers who needed help dealing with the IRS, ” Attorney General Abbott said. “A state investigation and nearly 1, 000 customer complaints indicate that the defendants routinely misled customers about the nature of their tax resolution service agreements – and worse, attempted to enforce those improper agreements through unlawful debt collection tactics. The state’s enforcement action seeks to prohibit the defendants from continuing to violate the law and seeks restitution for the financially struggling taxpayers who were harmed by the defendants’ unlawful conduct.”
The defendants advertise a tax resolution service for federal taxpayers who have received notice from the IRS of an audit, garnishment, lien, levy or tax deficiency. Citing a self-styled “national advertising campaign” and high-profile “endorsements, ” TaxMasters purports to have “one of the most effective tax relief teams in the tax representation business.” However, a state investigation – and nearly 1, 000 complaints submitted to the Office of the Attorney General and the Better Business Bureau of Houston – indicate that the defendants have unlawfully misled their customers and failed to disclose material facts about their service agreements.
TaxMasters’ advertisements encourage taxpayers to call its toll-free number for a “free consultation” with a “tax consultant.” Court documents filed by the state indicate that callers are not connected to an employee qualified to give tax advice, but rather with a TaxMasters salesperson who recommends a “solution” for between $1, 500 and $9, 000 or more.
According to court documents, many callers were offered an installment plan so that they could pay the defendants’ fee over a specified period of time. However, callers who asked to see written terms and conditions prior to making a payment were informed that a credit card or bank account number is necessary to generate a written TaxMasters service contract. As a result, TaxMasters customers were unaware – and the defendants’ personnel did not have a practice of disclosing – multiple aspects of the TaxMasters service agreement that were harmful to taxpayers.
For example, the defendants did not disclose that all customer payments submitted to TaxMasters are non-refundable. Because customers were not provided written contracts and sales personnel did not reveal the no-refunds policy, customers did not know that they would not be able to recover any installment payments they submitted to TaxMasters – even if they ultimately decide to cancel before TaxMasters actually did any work on their tax case.
The state’s enforcement action also cites TaxMasters for failing to reveal that it would not begin work on a case until all installment payments had been remitted and the entire fee was paid. Multiple complaints indicate that customers entered into an installment agreement with the understanding that TaxMasters would immediately begin work on their case – only to discover later that no action was taken. Customers often learned that there was a problem when they received a notice from the IRS indicating that an important deadline had been missed or that additional fees and penalties had accrued.
Court documents filed by the state also indicate that the defendants failed to disclose TaxMasters’ requirement that customers pay the entire service fee – even if they opt to cancel their contract. Because customers are not provided a written contract, they were not properly informed that agreeing to make a single payment over the telephone obligated them to pay the entire fee quoted by sales personnel. Further, not only did TaxMasters attempt to obligate its customers to a fee in the absence of a signed contract, the defendants used unlawful debt collection tactics to enforce the unauthorized obligation.
According to the state’s enforcement action, the defendants not only failed to disclose material terms and conditions governing its services, but also failed to properly provide the “tax resolution” services that were advertised. Customer complaints obtained by the Attorney General’s Office cite TaxMasters for failing to contact and consult with the IRS on the client’s behalf; failing to appear on the client’s behalf at an IRS audit or hearing; failing to postpone or stop a wage or bank account garnishment; and failing to stop a levy or lien against a client’s property.
When customers who were unhappy with the defendants’ services sought refunds, TaxMasters refused to return the customers’ money. Court documents indicate TaxMasters not only refused to honor refund requests, it also pursued debt collection efforts against clients who cancelled their contracts. The state’s enforcement action charges TaxMasters with unlawfully threatening to pursue customers in Harris County courts, even if those customers did not reside in the county. Under Texas law, entities seeking to enforce a consumer contract can only do so in a county where the agreement was executed or where the consumer resides.
The state's enforcement action is seeking restitution for each TaxMasters customer who was financially harmed by the defendants’ unlawful conduct. In addition, the state is seeking civil penalties of up to $20, 000 for each violation of the Texas Deceptive Trade Practices Act.
There is a private law firm focusing on issues with this organization. For more information visit www.taxmastersclassaction.com.
I also was taken for a sum more thanI could afford but paid it anyway becasue their emplyee told me that the IRS would come after me. Even though I had made an agreement with the IRS. TXMSTR employee said that the IRS would double my payments every three years untill it was beyond what I could afford then they would take it out of my account. SO out of fear of future debits I signed on and then I had to pay all money before they would do anything. After almost 2 months the same represenative informed me that my case was being heard and would be settled by the end of the month. Ater about 45 days of hearing nothing I called and called and finally found out that this represenative was no longer there. So they assigned me a auditor who in turn said we had more papers to fill out that it had not gone before anyone yet, So we filled all the papers sent them in and we was informed about 30 days later they could not do what they said they would and recomended we close the case and fill out a paper asking for a refund. After doing that we received a letter saying we should not close becasue they could do more for us, We then wrote them asking that if they could do more then by all means but if not then please give us our money, They then wrote back saying we would hear in 4-6 weeks and we have heard nothing 5 weeks later
I am interested in joining the class action suit against TaxMasters.
TaxMasters -- PLS READ -- agencies and addresses to complain to
Hi,
If you've been a victim of TaxMasters, below is a good starting list of everyone you should send a letter to, detailing your experience. Signed and mailed letters are often still taken more seriously than an emailed or faxed one. You should also include any/all supporting documentation/evidence.
This really is needed. The sooner these agencies receive more complaints about this company, the more they will investigate.
1. Your state's Attorney General
2. All of your state's Senators and Representatives (Federal and State)
3. All of the following:
U.S. Treasury Department
ATTN: Special Agent Farwell
1919 Smith St.
Suite 2270
Houston, TX 77002
Texas State Board of Public Accountancy
333 Guadalupe, Tower 3, Suite 900
Austin, TX [protected]
Treasury Inspector General for Tax Administration
Hotline
P.O. Box 589
Ben Franklin Station
Washington, DC [protected]
Office of the Attorney General of Texas
PO Box 12548
Austin, TX [protected]
U.S. Department of Justice
Office of Attorney General
950 Pennsylvania Avenue NW
Washington, DC 20530
Internal Revenue Service
Office of Professional Responsibility
SE: OPR, Room 7238/IR
1111 Constitution Avenue NW
Washington, DC 20224
Better Business Bureau of Houston
http://houston.bbb.org/
Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, DC 20580
Mayor Annise D. Parker
City of Houston
P.O. Box 1562
Houston, TX 77251
The PA class action suit has made it around the arbitration clause in the contract. TaxMasters filed a motion to compel arbitration, which was denied on 3/17/11.
Two federal lawsuits have been filed against TaxMasters and Patrick Cox personally:
Wells et al v. TaxMasters, Inc et al, filed 7/2/2010 regarding Fair Labor Standards
Antkowiak v. Taxmasters et al, filed 7/7/2010 regarding Fair Debt Collection
Well it finally happened:
http://www.oag.state.tx.us/oagnews/release.php?print=1&id=3328
FOR IMMEDIATE RELEASE
May 13, 2010
www.texasattorneygeneral.gov CONTACT
Press Office at
[protected]
Houston-based "Tax Resolution" Firm Charged With Unlawful Conduct, Misleading Customers
Texas Attorney General files enforcement action against TaxMasters, Inc.; cites nearly 1, 000 complaints about defendants’ conduct and business practices
HOUSTON – Texas Attorney General Greg Abbott today charged Houston-based TaxMasters, Inc., and its chief executive officer, Patrick Cox, with multiple violations of the Texas Deceptive Trade Practices Act and Texas Debt Collection Act.
According to the state’s enforcement action, the defendants unlawfully misled customers about their service contract terms, failed to disclose its no-refunds policy, and falsely claimed that the firm’s employees would immediately begin work on a case – despite the fact that TaxMasters did not actually start to work on a case until its customers paid in full for services, even if that delayed response meant taxpayers missed significant IRS deadlines.
“In the midst of a national economic downturn, TaxMasters used a nationwide marketing campaign to offer services for distressed taxpayers who needed help dealing with the IRS, ” Attorney General Abbott said. “A state investigation and nearly 1, 000 customer complaints indicate that the defendants routinely misled customers about the nature of their tax resolution service agreements – and worse, attempted to enforce those improper agreements through unlawful debt collection tactics. The state’s enforcement action seeks to prohibit the defendants from continuing to violate the law and seeks restitution for the financially struggling taxpayers who were harmed by the defendants’ unlawful conduct.”
The defendants advertise a tax resolution service for federal taxpayers who have received notice from the IRS of an audit, garnishment, lien, levy or tax deficiency. Citing a self-styled “national advertising campaign” and high-profile “endorsements, ” TaxMasters purports to have “one of the most effective tax relief teams in the tax representation business.” However, a state investigation – and nearly 1, 000 complaints submitted to the Office of the Attorney General and the Better Business Bureau of Houston – indicate that the defendants have unlawfully misled their customers and failed to disclose material facts about their service agreements.
TaxMasters’ advertisements encourage taxpayers to call its toll-free number for a “free consultation” with a “tax consultant.” Court documents filed by the state indicate that callers are not connected to an employee qualified to give tax advice, but rather with a TaxMasters salesperson who recommends a “solution” for between $1, 500 and $9, 000 or more.
According to court documents, many callers were offered an installment plan so that they could pay the defendants’ fee over a specified period of time. However, callers who asked to see written terms and conditions prior to making a payment were informed that a credit card or bank account number is necessary to generate a written TaxMasters service contract. As a result, TaxMasters customers were unaware – and the defendants’ personnel did not have a practice of disclosing – multiple aspects of the TaxMasters service agreement that were harmful to taxpayers.
For example, the defendants did not disclose that all customer payments submitted to TaxMasters are non-refundable. Because customers were not provided written contracts and sales personnel did not reveal the no-refunds policy, customers did not know that they would not be able to recover any installment payments they submitted to TaxMasters – even if they ultimately decide to cancel before TaxMasters actually did any work on their tax case.
The state’s enforcement action also cites TaxMasters for failing to reveal that it would not begin work on a case until all installment payments had been remitted and the entire fee was paid. Multiple complaints indicate that customers entered into an installment agreement with the understanding that TaxMasters would immediately begin work on their case – only to discover later that no action was taken. Customers often learned that there was a problem when they received a notice from the IRS indicating that an important deadline had been missed or that additional fees and penalties had accrued.
Court documents filed by the state also indicate that the defendants failed to disclose TaxMasters’ requirement that customers pay the entire service fee – even if they opt to cancel their contract. Because customers are not provided a written contract, they were not properly informed that agreeing to make a single payment over the telephone obligated them to pay the entire fee quoted by sales personnel. Further, not only did TaxMasters attempt to obligate its customers to a fee in the absence of a signed contract, the defendants used unlawful debt collection tactics to enforce the unauthorized obligation.
According to the state’s enforcement action, the defendants not only failed to disclose material terms and conditions governing its services, but also failed to properly provide the “tax resolution” services that were advertised. Customer complaints obtained by the Attorney General’s Office cite TaxMasters for failing to contact and consult with the IRS on the client’s behalf; failing to appear on the client’s behalf at an IRS audit or hearing; failing to postpone or stop a wage or bank account garnishment; and failing to stop a levy or lien against a client’s property.
When customers who were unhappy with the defendants’ services sought refunds, TaxMasters refused to return the customers’ money. Court documents indicate TaxMasters not only refused to honor refund requests, it also pursued debt collection efforts against clients who cancelled their contracts. The state’s enforcement action charges TaxMasters with unlawfully threatening to pursue customers in Harris County courts, even if those customers did not reside in the county. Under Texas law, entities seeking to enforce a consumer contract can only do so in a county where the agreement was executed or where the consumer resides.
The state's enforcement action is seeking restitution for each TaxMasters customer who was financially harmed by the defendants’ unlawful conduct. In addition, the state is seeking civil penalties of up to $20, 000 for each violation of the Texas Deceptive Trade Practices Act.
Those are all good contacts. There also is a law firm specializing in issues with this specific company. The website is www.taxmastersclassaction.com.
I took your advise and mailed a complaint to each one of these address. Thanks.
Class Action Suit Called For
There are more than 450 complaints on here for Tax Masters under different headings and spelliings that I have found so far. I call for a class action suit.
The complaint has been investigated and resolved to the customer’s satisfaction.
THERE IS AN ATTORNEY IN NY THAT IS TRYING TO GET NAMES AND DETAILS TO FILE A CLASS ACTION! LET ME KNOW IF YOU ARE INTERESTED. PJ
The only thing Taxmasters got between was me and my money! They did nothing I have not had to since redo. They cannot name one SINGLE person they spoke with at the IRS on my behalf and my interest and penalties have continued to grow the whole time I was depending on TM. I have finally begun consultation with the IRS to resolve this situation. I think tar and feathers for that fat ### is too good. My question is, with all the complaints, charges, law suits, etc., why is Patrick Cox still allowed to advertise?
When I became unemployed the IRS placed a lein on my home. Not knowing where to turn I contacted Taxmasters in good faith. With our family income cut in half and unemployment exhausted, I gave Taxmasters several payments. My family made extreme sacrifices during this time of financial distress . Taxmasters made numerous promises so that I would continue to send the payments. Just like the complaints I have read- nothing was done. I personally resolved my issue with the IRS. After requesting a refund numerous times and contacting the BBB, Taxmasters offered to refund me a small portion of repayment.- as of this date I have received nothing! I would appreciate any information from others in my situation. creevescrossmike@yahoo.com
Do I need to contact an attorney? and if so who, or is there anything else I can do
Same thing happened to me with different people. they cost me 5000.00 and didnt do anything.
The PA class action suit has made it around the arbitration clause in the contract. TaxMasters filed a motion to compel arbitration, which was denied on 3/17/11.
I contract with Tax Masters in early August. Two days later I found the lawsuit inititated by the Texas State Attorney General's Office and contacted the repreentative I'd been working with indicating that I did not want them to represent me. The representative assured me that this was a political move on the part of the Attorney General, as it was an election year, completely ignoring my instructions to cease all actions on my behalf. I replied to his reassurance, this time making it very clear that I did not want them to represent me and that they were not to extract any funds from my bank account. Thinking that all had been settled and that the representative clearly understood my demand for both a refund and termination of services, the next thing I knew my bank account had been drafted for $540. All transactions were via email, but it wasn't until I filed a complaint through the local BBB and a certified letter to Tax Masters did they finally respond. Despite my demand, they extracted information from the IRS, which in reality was incorrect. I am finally workining directly with the IRS and finding the experience to be a lot better than I had expected. These so called Tax Relief firms can't do anything that we can't do ourselves. I have found IRS personnel to be cooperative and willing to work with me to get this issue settled. As for Tax Masters, they're nothing more than scam artist, taking money they haven't earned and representatives that prey on those that still fear the IRS. My advise, forget the scam artist and deal directly with the IRS. You'll save yourself the frustration, time and the expense of deal with these scam artist. As for class action, unfortunately I've learned that because of the amounts involved, most of us only have a small claims suit.
there are now 4 federal lawsuits against TaxMasters, for varied reasons:
8 Taxmasters, Inc. (dft) txsdce 4:2010-cv-02373 710 07/02/2010
9 Taxmasters (dft) txsdce 4:2010-cv-02373 710 07/02/2010
10 TAXMASTERS, INC. (dft) paedce 2:2010-cv-03331 480 07/07/2010
11 TAXMASTERS (dft) paedce 2:2010-cv-03331 480 07/07/2010
14 TaxMasters Inc. (cnflck) txsdce 4:2010-cv-03055 710 08/25/2010
15 Taxmasters, Inc. (dft) txsdce 4:2010-cv-03055 710 08/25/2010
16 Taxmasters (dft) txsdce 4:2010-cv-03055 710 08/25/2010
17 Taxmasters, Inc. (dft) txsdce 4:2010-cv-03330 190 09/16/2010
TaxMasters misrepresented my case with the IRS. They failed to follow-up with the IRS on scheduled hearings and when I contacted TaxMasters they were clueless. Their customer service level is very poor and when requesting reimbursement of my money it was ignored. As a result of hiring TaxMasters they did not stop the IRS from placing a lien on my property. I had to resolve my tax problems with the IRS. TaxMasters should be sued and made to reimburse each client in full plus and not allowed to do business in TX or any other state. I still want my money back. I will go ahead and write the above listed agencies.
Two federal lawsuits have been filed against TaxMasters and Patrick Cox personally:
Wells et al v. TaxMasters, Inc et al, filed 7/2/2010 regarding Fair Labor Standards
Antkowiak v. Taxmasters et al, filed 7/7/2010 regarding Fair Debt Collection
Fraudulent Bunch of Crooks
TaxMasters Illegally withdrew $1, 500 “TWICE” from my account without my written authorization, and, , after I called them and cancelled their services within the Federal 3 day Right of rescission.
I DIDN'T SIGN MY NAME ON ANY DOCUMENTS FROM THEM. AND THEY DID NOT PROVIDE ANY SERVICES.
They even “Created” an official looking paper check, putting my name and info on it just like an bank check, filled in TaxMasters on the “Pay to the order of” Line, put a check number on each one of 8000 and 8010, and then in the signature space put in:
SIGNATURE NOT REQUIRED
Your depositor has authorized this payment to payee.
Payee to hold you harmless for payment of this document.
This document shall be deposited only to the credit of payee.
Have started a criminal complaint with Houston PD Financial Crimes Unit, another with the State of Texas Attorney General, the Houston Attorney General and am looking into federal charges because it crosses state lines. Will also making out a complaint with the BBB for what thats worth. TaxMasters already has a FFF Rating.
TaxMasters name should be changed to Rip-Off Masters, ForgeryMasters, CheckFraudMasters.
NOTHING BUT A BUNCH OF CROOKS!
raginglou
The complaint has been investigated and resolved to the customer’s satisfaction.
After TaxMasters received all the documtents they reqeusted (which I had to FAX twice) I had to do all the follow up to TaxMasters as to the status on my account. I sent documents April 16, 2017 and again May 4, 2017. I heard nothing from TaxMasters until I contacted them Sept. 9, 2017 and 9 more times through Nov. 2017. The analyist assigned to my account was changed twice. When they were ready to submit an offer and compromise, the analyist asked me what I wanted to offer. I thought that was their job. I finally get a letter, Mar 12, 2017 from IRS that they will not accept my offer because I have assets enough to pay the tax liability. My complaint is "Why didn't TaxMasters review my documentation right away and advise me that IRS has these guidelines in place". I would have arranged payments with the IRS upon learning that information. They advertise to be experts in this field and their employees are prior IRS employees.
I paid $5500 in three instalments, waited over a year to find out my tax liability is not negotiable. I've contacted them for a refund, but they refused. Their contract (page4) states "Firm will analyze financial data submitted". "Firm will recommend to Client what Firm believes in its professional judment to be the best alternative for Client of the various IRS programs". On page 7, TaxMasters contract states "Firm may, at its sole disscretin, refnd the amount of the stated retainer".
Entered into agreement with Taxmasters for described services based on representations given during initial contact. Payment for prescribed services submitted in full. Subsequent interactions with Taxmaster associates led to my exercising the termination clause as described in contract. Termination clause describes refund eligibility for those services not rendered, either partial or full. Numerous requests were made for complete and accurate invoice showing work performed by email, phone and certified mail. No response was received for any request sent to Taxmasters. Filed complaints with the Texas BBB and the Texas Board of Public Accountancy, specifically against Patrick Cox. Additionally, I am seeking to file Small Claims case in Harris County against Taxmasters for $4200.00.
Taxmasters and key individuals responsible for complaint reconciliation have remained unwilling to engage in conflict resolution and continue to ignore client's rights clauses in the contract.
Needed help with my IRS issues and called them. Spoke to an Alex Rodriquez who was a very good salesman. He stated he could help and said he would send over contract paperwork and a payment plan that I would need to sign and fax back. He stated he would need a $550.00 payment up front in order to "start the ball rolling". I gace him my card# and the charge went on my card.
I then began to get a bad feeling upon reciept and perusal of the paperwork he sent over. I called him back and told him I wanted to cancel. After a brief chat, we hung up and I sent over a fax and e-mail to a Tiffany Campbell to forward to the QA dept who is supposed to review request for refunds. I stated clearly that I wished to cancel and would deal with the IRS on my own. Since it was only one day later and no work could possibly have been done, this seemed a realistic request.
I have received no followup or refund as yet. This after I cancelled the day after the initial contact and sent no paperwork or other authorizations back. I also cancelled the card I used.
I will continue to follw up and update this posting.
I called taxmasters to check on their claims of being able to help you with tax problems. They very quickly make sure they get a credit card from you and start charging fees on it. They then sent me some papers to sign and return by e-mail. I did not sign them and informed them I did not want their services. This was all on the same day. I have received a letter from them that I am still responsible for $4500.00 in fees. They did nothing for me. They operate one of the biggest scams in the country. I have filed a complaint with the
Texas Attorney General. There needs to be a lawsuit filed against them. I am 67 years old and do not have money to throw away like this.
These guys are the biggest parasites on the planet! After paying them $5500, they completely failed to deliver on any of their promises. Every person you talk to tells a slightly different story and the bottom line is they are ripoff artists and bottom feeders of the highest order. You are better off dealing with the IRS yourself than with Taxmasters.
I don't see how half the stuff in their service contract is even legal and why they haven't been shut down. UNDER NO CIRCUMSTANCES - NO MATTER HOW DESPERATE YOU ARE SHOULD YOU GIVE THIS HORRIBLE COMPANY ANY OF YOUR MONEY!
I CONTACTED THIS COMPANY FOR TAX INFORMATION AND THEY IMMEDIATELY "SIGNED ME UP". I WAS NEVER ADVISED OF A CONTRACT BEING ENROUTE AND ABOUT ONE WEEK LATER (12/22/08 I RECIEVED AN ACCEPTANCE LETTER INDICATING THAT THEY HAD ACCEPTED MY CASE. I DID NOT HEAR ANYTHING FURTHER SO I ASSUMED THAT THEY WERE WORKING ON MY CASE BECAUSE I HAD A JANUARY 15 DEADLINE. I BECAME CONCERNED AFTER NO FURTHER WORD FROM THEM SO I CALLED ON THE 2 JAN. 09 TO INQUIRE ABOUT THE DEADLINE FILING. I WAS ADVISED THAT THEY HAD SENT FOR THE IRS FILE AND REQUESTED AN EXTENSION IN ORDER TO BECOME FAMILIAR WITH THE CASE. I STILL HAD NOT RECIEVED ANY FURTHER CORRESPONDENCE INCLUDING A CONTRACT~~ I TELEPHONED AGAIN BECAUSE I WAS BECOMING WORRDIED ABOUT THE DEADLINE AND WAS SUBSEQUENTLY ADVISED THAT THEY HAD NO CONTRACT WITH ME BECUAUSE I HAD NOT RETURNED THE SIGNED POWER OF ATTORNEY WHICH I NEVER RECIEVED. THEY SAID THEY WERE UNABLE TO BEGIN WORK BECAUSE OF THIS (ALTHOUGH THEY HAD CHARGED ME THE INITIAL 675 DOLLARS DOWN AND DEDUCTED ANOTHER 675 DOLLARS FOR THE MONTH OF JANUARY. THEY WERE UNABLE TO EMAIL THE DOCUMENTS THEY WANTED DUE TO A PROBLEM WITH THEIR EMAIL. MEANWHILE, THE IRS IS LEVYING MY SOCIAL SECURITY AND PENSION BECAUSE I DID NOT MEED THEIR DEADLINE. WHAT CAN I DO?
I don't want to belabor the awful service I received from this company. All of these complaints listed here are REAL. I am a victim. Additionally, the collateral damage continues as I just received my final statement on back taxes we finally paid off. Because Tax Masters failed to do their job or even to give us good advice on how to negotiate, I paid an additional $3, 337 because the taxing authority, once they begin collections on you, charge you 20% in additional penalties on the unpaid balance. I thought I was finally going to just forget Tax Masters, but instead I am reminded of their negligence in regard to my account and now in addition to the $7, 000 I had to pay them up front, they are now costing me this additional penalty. In fact the total penalties and interest came to a whopping $6, 958. All I had to do was call the taxing authority and set up a payment plan and I would have avoided much of these penalties.
Please do not be misled by their advertisements. Check the BBB. They believe it or not, score an F. I have never seen that before in a publicly traded company. The regulatory agencies for tax relief companies must not be doing their job. I don't understand why they are still doing business. I don't stand to gain anything from this complaint. I only hope that you, my brothers and sisters, can be saved from the horrible experience I have endured. Please do your homework. Better yet... find a tax relief company that really has GREAT credentials. I believe there are some out there. Unfortunately, I only have Tax Masters experience.
My wife and I called and talked to a man named Rob for are first phone consultation. He promised that the IRS cannot levy you when in contract with there fraudalint company. After we were suckered into a 3, 000 dollar contract to do our 2017 taxes and take care of our 3 years deferd taxes this is what they did to us. They filed our 2017 taxes and did them wrong (then they wanted more money to correct there mistake). We then went to the next department who were supposed to setup our payment arrangements for 3 years of defered taxes. We went through three peolpe who did not know a thing what they were doing. Then we talked to a Micheal Jackson. After finally thinking the matter was going to be taken care of, he screwed up and only did one year of our settlement instead of the 3 years. We had sent the same paper work 6 times to these jerks and never recieved one call from them (we always had to call them) during this whole time with dealing with the scammers the IRS and state treausery were sending threatining letters and we finnaly levied. We never heard from taxmastersscam artist again till 2 months later when they wanted more money to file paper work for the state. By this time my wife and I had worked out arrangements with the IRS and state and it was free (very easy)we payed these jerks 3, 000 dollars and they did nothing for us BEWARE OF PATRICK COX AND TAXMASTERS THEY ARE AN INCOMPATENET COMPANY WHO LIE AND STEAL WE HAVE FILED COMPLAINTS WITH THE BBB WHERE THEY HAVE AN F RATING AND ALSO THE ATTORNEY GENERAL OF TEXAS. I HOPE THEY GO OUT FO BUISNESS AND PAY FOR THERE EVIL WAYS
I called taxmasters and talked to them. They pushed me to put a charge on my credit card, 24 hrs later i called to cancel the order and they are refusing to retun my credit card payment. I sent letters cancelling my services by email .phone and letter to their office. Now i`m stuck fighting with taxmasters and credit card company over charges for services that have not started or not recived and they have no information from me to carry out the services they are attempting to charge me for. I was stressed before today. This took it up 10 notches. Any company that refuses to return your payment within 24 hours of order is definatly NOT TRUSTWORTHY PEOPLE. Customer service people hanging up on me when i call and tell them i don`t want their services .
This compay is PURE FRAUDELENT!
A very well-spoken salesman sold me their services for $5050. After revceiveing their money my case was assigned to an ill-spoken respresentative who did NOTHING for me. I was strung along and told items would arrive in both email and USPS, none of which ever came. I was told they would stop wage garnishments which never happened. When phoning both the state and the feds to do the work myself, I was informed that Taxmasters had never contacted them on my behalf as promised.
Taxmasters won't return calls or emails.
****TAXMASTERS IS FRAUDULENT***
Consumers Beware!
See Texas State Attorney General's Response to this company at http://www.oag.state.tx.us/media/videos/play.php?image=051310taxnewers&id=390
Will not refund money for services not rendered
On May 26th, 2009, I contacted TaxMasters regarding a tax problem I had with the State of Ct. After speaking at length with Corey McAllister, I agreed to have them represent me. I was told the charge was $2500 and I agreed to a 5-payment plan, deducting $500 from my checking account each month.
I never signed a contract, but did give my checking account information over the phone. The next day I decided to try to solve the problems myself and thought why give TaxMasters $2500, try and negotiate with the State of CT, which I was able to do. I then called and left e-mail messages cancelling my services with them.
I never got any return call or e-mail message. A few days later, I received a welcome e-mail from Toni Gillis. I then phoned her to state that I had sent a cancellation e-mail to Mr. McAllister. She told me to re-send my cancellation e-mail to her and she would take care of it. Nothing was ever done, and so far they have tried to withdraw $1000 from my checking account. They do not answer my phone calls or e-mail messages, although I always receive read receipts that they have received these messages.
I have hired an attorney to represent me and he sent them a letter July 18th stating that I want all my monies back or we will bring suit in a Connecticut court and seek damages undre the Connecticut Unfair Trade Practices Act. He CC's a copy to the Connecticut Attorney General's office.
How I wish I checked out TaxMasters under Google, as I find there are hundreds of other similiar complaints against them and a Class Action Law suit is pending in Texas. I would like to join that lawsuit, if there are non pending in Connecticut and file this complaint hoping to hear of similar complaints and perhaps information on pending lawsuits against this fraudulent company. They also advertise on MSNBC and CNN and I will be bring this information to their attention.
The complaint has been investigated and resolved to the customer’s satisfaction.
The PA class action suit has made it around the arbitration clause in the contract. TaxMasters filed a motion to compel arbitration, which was denied on 3/17/11.
Well it finally happened -- government action against TaxMasters:
http://www.oag.state.tx.us/oagnews/release.php?print=1&id=3328
FOR IMMEDIATE RELEASE
May 13, 2010
www.texasattorneygeneral.gov CONTACT
Press Office at
[protected]
Houston-based "Tax Resolution" Firm Charged With Unlawful Conduct, Misleading Customers
Texas Attorney General files enforcement action against TaxMasters, Inc.; cites nearly 1, 000 complaints about defendants’ conduct and business practices
HOUSTON – Texas Attorney General Greg Abbott today charged Houston-based TaxMasters, Inc., and its chief executive officer, Patrick Cox, with multiple violations of the Texas Deceptive Trade Practices Act and Texas Debt Collection Act.
According to the state’s enforcement action, the defendants unlawfully misled customers about their service contract terms, failed to disclose its no-refunds policy, and falsely claimed that the firm’s employees would immediately begin work on a case – despite the fact that TaxMasters did not actually start to work on a case until its customers paid in full for services, even if that delayed response meant taxpayers missed significant IRS deadlines.
“In the midst of a national economic downturn, TaxMasters used a nationwide marketing campaign to offer services for distressed taxpayers who needed help dealing with the IRS, ” Attorney General Abbott said. “A state investigation and nearly 1, 000 customer complaints indicate that the defendants routinely misled customers about the nature of their tax resolution service agreements – and worse, attempted to enforce those improper agreements through unlawful debt collection tactics. The state’s enforcement action seeks to prohibit the defendants from continuing to violate the law and seeks restitution for the financially struggling taxpayers who were harmed by the defendants’ unlawful conduct.”
The defendants advertise a tax resolution service for federal taxpayers who have received notice from the IRS of an audit, garnishment, lien, levy or tax deficiency. Citing a self-styled “national advertising campaign” and high-profile “endorsements, ” TaxMasters purports to have “one of the most effective tax relief teams in the tax representation business.” However, a state investigation – and nearly 1, 000 complaints submitted to the Office of the Attorney General and the Better Business Bureau of Houston – indicate that the defendants have unlawfully misled their customers and failed to disclose material facts about their service agreements.
TaxMasters’ advertisements encourage taxpayers to call its toll-free number for a “free consultation” with a “tax consultant.” Court documents filed by the state indicate that callers are not connected to an employee qualified to give tax advice, but rather with a TaxMasters salesperson who recommends a “solution” for between $1, 500 and $9, 000 or more.
According to court documents, many callers were offered an installment plan so that they could pay the defendants’ fee over a specified period of time. However, callers who asked to see written terms and conditions prior to making a payment were informed that a credit card or bank account number is necessary to generate a written TaxMasters service contract. As a result, TaxMasters customers were unaware – and the defendants’ personnel did not have a practice of disclosing – multiple aspects of the TaxMasters service agreement that were harmful to taxpayers.
For example, the defendants did not disclose that all customer payments submitted to TaxMasters are non-refundable. Because customers were not provided written contracts and sales personnel did not reveal the no-refunds policy, customers did not know that they would not be able to recover any installment payments they submitted to TaxMasters – even if they ultimately decide to cancel before TaxMasters actually did any work on their tax case.
The state’s enforcement action also cites TaxMasters for failing to reveal that it would not begin work on a case until all installment payments had been remitted and the entire fee was paid. Multiple complaints indicate that customers entered into an installment agreement with the understanding that TaxMasters would immediately begin work on their case – only to discover later that no action was taken. Customers often learned that there was a problem when they received a notice from the IRS indicating that an important deadline had been missed or that additional fees and penalties had accrued.
Court documents filed by the state also indicate that the defendants failed to disclose TaxMasters’ requirement that customers pay the entire service fee – even if they opt to cancel their contract. Because customers are not provided a written contract, they were not properly informed that agreeing to make a single payment over the telephone obligated them to pay the entire fee quoted by sales personnel. Further, not only did TaxMasters attempt to obligate its customers to a fee in the absence of a signed contract, the defendants used unlawful debt collection tactics to enforce the unauthorized obligation.
According to the state’s enforcement action, the defendants not only failed to disclose material terms and conditions governing its services, but also failed to properly provide the “tax resolution” services that were advertised. Customer complaints obtained by the Attorney General’s Office cite TaxMasters for failing to contact and consult with the IRS on the client’s behalf; failing to appear on the client’s behalf at an IRS audit or hearing; failing to postpone or stop a wage or bank account garnishment; and failing to stop a levy or lien against a client’s property.
When customers who were unhappy with the defendants’ services sought refunds, TaxMasters refused to return the customers’ money. Court documents indicate TaxMasters not only refused to honor refund requests, it also pursued debt collection efforts against clients who cancelled their contracts. The state’s enforcement action charges TaxMasters with unlawfully threatening to pursue customers in Harris County courts, even if those customers did not reside in the county. Under Texas law, entities seeking to enforce a consumer contract can only do so in a county where the agreement was executed or where the consumer resides.
The state's enforcement action is seeking restitution for each TaxMasters customer who was financially harmed by the defendants’ unlawful conduct. In addition, the state is seeking civil penalties of up to $20, 000 for each violation of the Texas Deceptive Trade Practices Act.
Hi,
If you've been a victim of TaxMasters, below is a good starting list of everyone you should send a letter to, detailing your experience. Signed and mailed letters are often still taken more seriously than an emailed or faxed one. You should also include any/all supporting documentation/evidence.
This really is needed. The sooner these agencies receive more complaints about this company, the more they will investigate.
1. Your state's Attorney General
2. All of your state's Senators and Representatives (Federal and State)
3. All of the following:
U.S. Treasury Department
ATTN: Special Agent Farwell
1919 Smith St.
Suite 2270
Houston, TX 77002
Texas State Board of Public Accountancy
333 Guadalupe, Tower 3, Suite 900
Austin, TX [protected]
Treasury Inspector General for Tax Administration
Hotline
P.O. Box 589
Ben Franklin Station
Washington, DC [protected]
Office of the Attorney General of Texas
PO Box 12548
Austin, TX [protected]
U.S. Department of Justice
Office of Attorney General
950 Pennsylvania Avenue NW
Washington, DC 20530
Internal Revenue Service
Office of Professional Responsibility
SE: OPR, Room 7238/IR
1111 Constitution Avenue NW
Washington, DC 20224
Better Business Bureau of Houston
http://houston.bbb.org/
Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, DC 20580
Mayor Annise D. Parker
City of Houston
P.O. Box 1562
Houston, TX 77251
I think it is time we all work together to confront taxmasters with a Class Suit!
Please email me if you are interested.
cruzev2010@yahoo.com
These are the people's names I have been given by taxmasters (if they actually exist)
Jill Kimball
Michelle Lea Thoma
Michelle Perry
Diana Amacero
Melody Johnson
Tiffany
James Arline- The one that suckered me into this nightmare!
I'm encountering similar problems with TaxMasters of TX. My include billing, mispresentation of services, customer service and refund request. TaxMasters is a hoax, all they do is collect your money and leave you out to dry.
The representatives "supposed" to be assisting are: DaMaris Givens - case coordinator and Delmar Hunter - settlement analyst.
To date, they have not been responsive. In addition, they are outright rude and know nothing of customer service (ie. phone call).
not professional
Yep, same story.
Here is what to do:
3/10/09
I called the Texas State Attorney Generals office, There are 77 complaints on file.
They reffered me to Harris County District Attorney’s office, [protected]. I was informed “A special Agent has been assigned to this case, Send complaints to:”
US Treasury Department
Special Agent Farwell
1919 Smith St.
#2270
Huston, TX 77002
No phone or Email information is given.
The complaint has been investigated and resolved to the customer’s satisfaction.
Well it finally happened -- government action against TaxMasters:
http://www.oag.state.tx.us/oagnews/release.php?print=1&id=3328
FOR IMMEDIATE RELEASE
May 13, 2010
www.texasattorneygeneral.gov CONTACT
Press Office at
[protected]
Houston-based "Tax Resolution" Firm Charged With Unlawful Conduct, Misleading Customers
Texas Attorney General files enforcement action against TaxMasters, Inc.; cites nearly 1, 000 complaints about defendants’ conduct and business practices
HOUSTON – Texas Attorney General Greg Abbott today charged Houston-based TaxMasters, Inc., and its chief executive officer, Patrick Cox, with multiple violations of the Texas Deceptive Trade Practices Act and Texas Debt Collection Act.
According to the state’s enforcement action, the defendants unlawfully misled customers about their service contract terms, failed to disclose its no-refunds policy, and falsely claimed that the firm’s employees would immediately begin work on a case – despite the fact that TaxMasters did not actually start to work on a case until its customers paid in full for services, even if that delayed response meant taxpayers missed significant IRS deadlines.
“In the midst of a national economic downturn, TaxMasters used a nationwide marketing campaign to offer services for distressed taxpayers who needed help dealing with the IRS, ” Attorney General Abbott said. “A state investigation and nearly 1, 000 customer complaints indicate that the defendants routinely misled customers about the nature of their tax resolution service agreements – and worse, attempted to enforce those improper agreements through unlawful debt collection tactics. The state’s enforcement action seeks to prohibit the defendants from continuing to violate the law and seeks restitution for the financially struggling taxpayers who were harmed by the defendants’ unlawful conduct.”
The defendants advertise a tax resolution service for federal taxpayers who have received notice from the IRS of an audit, garnishment, lien, levy or tax deficiency. Citing a self-styled “national advertising campaign” and high-profile “endorsements, ” TaxMasters purports to have “one of the most effective tax relief teams in the tax representation business.” However, a state investigation – and nearly 1, 000 complaints submitted to the Office of the Attorney General and the Better Business Bureau of Houston – indicate that the defendants have unlawfully misled their customers and failed to disclose material facts about their service agreements.
TaxMasters’ advertisements encourage taxpayers to call its toll-free number for a “free consultation” with a “tax consultant.” Court documents filed by the state indicate that callers are not connected to an employee qualified to give tax advice, but rather with a TaxMasters salesperson who recommends a “solution” for between $1, 500 and $9, 000 or more.
According to court documents, many callers were offered an installment plan so that they could pay the defendants’ fee over a specified period of time. However, callers who asked to see written terms and conditions prior to making a payment were informed that a credit card or bank account number is necessary to generate a written TaxMasters service contract. As a result, TaxMasters customers were unaware – and the defendants’ personnel did not have a practice of disclosing – multiple aspects of the TaxMasters service agreement that were harmful to taxpayers.
For example, the defendants did not disclose that all customer payments submitted to TaxMasters are non-refundable. Because customers were not provided written contracts and sales personnel did not reveal the no-refunds policy, customers did not know that they would not be able to recover any installment payments they submitted to TaxMasters – even if they ultimately decide to cancel before TaxMasters actually did any work on their tax case.
The state’s enforcement action also cites TaxMasters for failing to reveal that it would not begin work on a case until all installment payments had been remitted and the entire fee was paid. Multiple complaints indicate that customers entered into an installment agreement with the understanding that TaxMasters would immediately begin work on their case – only to discover later that no action was taken. Customers often learned that there was a problem when they received a notice from the IRS indicating that an important deadline had been missed or that additional fees and penalties had accrued.
Court documents filed by the state also indicate that the defendants failed to disclose TaxMasters’ requirement that customers pay the entire service fee – even if they opt to cancel their contract. Because customers are not provided a written contract, they were not properly informed that agreeing to make a single payment over the telephone obligated them to pay the entire fee quoted by sales personnel. Further, not only did TaxMasters attempt to obligate its customers to a fee in the absence of a signed contract, the defendants used unlawful debt collection tactics to enforce the unauthorized obligation.
According to the state’s enforcement action, the defendants not only failed to disclose material terms and conditions governing its services, but also failed to properly provide the “tax resolution” services that were advertised. Customer complaints obtained by the Attorney General’s Office cite TaxMasters for failing to contact and consult with the IRS on the client’s behalf; failing to appear on the client’s behalf at an IRS audit or hearing; failing to postpone or stop a wage or bank account garnishment; and failing to stop a levy or lien against a client’s property.
When customers who were unhappy with the defendants’ services sought refunds, TaxMasters refused to return the customers’ money. Court documents indicate TaxMasters not only refused to honor refund requests, it also pursued debt collection efforts against clients who cancelled their contracts. The state’s enforcement action charges TaxMasters with unlawfully threatening to pursue customers in Harris County courts, even if those customers did not reside in the county. Under Texas law, entities seeking to enforce a consumer contract can only do so in a county where the agreement was executed or where the consumer resides.
The state's enforcement action is seeking restitution for each TaxMasters customer who was financially harmed by the defendants’ unlawful conduct. In addition, the state is seeking civil penalties of up to $20, 000 for each violation of the Texas Deceptive Trade Practices Act.
My name is Anne McHale and I too have been scammed by TaxMasmters...I have hired a lawyer and would like to pursue a class action law suit against them.
Let me know if you have one pending in Texas. I am from CT and am looking into it in this State.
Thanks,
annemchale@optonline.net
My name is Riley Powers if you are a lawyer firm that can help us people that have been Victims, of this super scram company that is making fool's of individuals that are having serious tax problems. I'm at ends Wit, Loss home, filed bankruptcy, and IRS is getting ready to finish ruining my life. If you are a victim their is power in numbers. Let's pursue a class action law suit that is large enough to put them out of business. Send your name and story to me as soon as possible let's put a end to these careless crooks. (you will get a reply, unlike TAXMASTERS)
ralo_rallo@yahoo.com
THIEVES!!!
This company is made up of thieves! To give you an idea please visit the above website! I WANT MY REFUND OF NEARLY $5, 0000.00 that they have stolen from me! Who is with me to stop at nothing...this website is a gift from all of us...wwww.myspace.com/taxmasterpigs
PLEASE ADD MY FACEBOOK PAGE "TAX MASTERSCAM" YOU WILL SEE A PICTURE OF A FLYING PIG...I HAVE BEEN DEALING WITH THE LOSS OF $5, 000.00 SINCE APRIL 2008 AND SUPPLIED DOCUMENTS TO ALL AND STILL THEY GET AWAY WITH THIS SCAM...PLEASE ADD ME AND MAYBE WE CAN GET SOMEWHERE! THANK YOU
PJ GOMEZ
THESE PIGS HAD THE MYSPACE ACCOUNT DELETED! OVER A YEAR AND STILL NO REFUND! CAN ANYONE HELP!
The complaint has been investigated and resolved to the customer’s satisfaction.
The PA class action suit has made it around the arbitration clause in the contract. TaxMasters filed a motion to compel arbitration, which was denied on 3/17/11.
there are now 4 federal lawsuits against TaxMasters, for varied reasons:
8 Taxmasters, Inc. (dft) txsdce 4:2010-cv-02373 710 07/02/2010
9 Taxmasters (dft) txsdce 4:2010-cv-02373 710 07/02/2010
10 TAXMASTERS, INC. (dft) paedce 2:2010-cv-03331 480 07/07/2010
11 TAXMASTERS (dft) paedce 2:2010-cv-03331 480 07/07/2010
14 TaxMasters Inc. (cnflck) txsdce 4:2010-cv-03055 710 08/25/2010
15 Taxmasters, Inc. (dft) txsdce 4:2010-cv-03055 710 08/25/2010
16 Taxmasters (dft) txsdce 4:2010-cv-03055 710 08/25/2010
17 Taxmasters, Inc. (dft) txsdce 4:2010-cv-03330 190 09/16/2010
Two federal lawsuits have been filed against TaxMasters and Patrick Cox personally:
Wells et al v. TaxMasters, Inc et al, filed 7/2/2010 regarding Fair Labor Standards
Antkowiak v. Taxmasters et al, filed 7/7/2010 regarding Fair Debt Collection
I want my money back to, what should I do? I paid them 7000.00 and got nothing for it but my taxes prepared.
please contact me mickimarb@aol.com
Well it finally happened -- government action against TaxMasters:
http://www.oag.state.tx.us/oagnews/release.php?print=1&id=3328
FOR IMMEDIATE RELEASE
May 13, 2010
www.texasattorneygeneral.gov CONTACT
Press Office at
[protected]
Houston-based "Tax Resolution" Firm Charged With Unlawful Conduct, Misleading Customers
Texas Attorney General files enforcement action against TaxMasters, Inc.; cites nearly 1, 000 complaints about defendants’ conduct and business practices
HOUSTON – Texas Attorney General Greg Abbott today charged Houston-based TaxMasters, Inc., and its chief executive officer, Patrick Cox, with multiple violations of the Texas Deceptive Trade Practices Act and Texas Debt Collection Act.
According to the state’s enforcement action, the defendants unlawfully misled customers about their service contract terms, failed to disclose its no-refunds policy, and falsely claimed that the firm’s employees would immediately begin work on a case – despite the fact that TaxMasters did not actually start to work on a case until its customers paid in full for services, even if that delayed response meant taxpayers missed significant IRS deadlines.
“In the midst of a national economic downturn, TaxMasters used a nationwide marketing campaign to offer services for distressed taxpayers who needed help dealing with the IRS, ” Attorney General Abbott said. “A state investigation and nearly 1, 000 customer complaints indicate that the defendants routinely misled customers about the nature of their tax resolution service agreements – and worse, attempted to enforce those improper agreements through unlawful debt collection tactics. The state’s enforcement action seeks to prohibit the defendants from continuing to violate the law and seeks restitution for the financially struggling taxpayers who were harmed by the defendants’ unlawful conduct.”
The defendants advertise a tax resolution service for federal taxpayers who have received notice from the IRS of an audit, garnishment, lien, levy or tax deficiency. Citing a self-styled “national advertising campaign” and high-profile “endorsements, ” TaxMasters purports to have “one of the most effective tax relief teams in the tax representation business.” However, a state investigation – and nearly 1, 000 complaints submitted to the Office of the Attorney General and the Better Business Bureau of Houston – indicate that the defendants have unlawfully misled their customers and failed to disclose material facts about their service agreements.
TaxMasters’ advertisements encourage taxpayers to call its toll-free number for a “free consultation” with a “tax consultant.” Court documents filed by the state indicate that callers are not connected to an employee qualified to give tax advice, but rather with a TaxMasters salesperson who recommends a “solution” for between $1, 500 and $9, 000 or more.
According to court documents, many callers were offered an installment plan so that they could pay the defendants’ fee over a specified period of time. However, callers who asked to see written terms and conditions prior to making a payment were informed that a credit card or bank account number is necessary to generate a written TaxMasters service contract. As a result, TaxMasters customers were unaware – and the defendants’ personnel did not have a practice of disclosing – multiple aspects of the TaxMasters service agreement that were harmful to taxpayers.
For example, the defendants did not disclose that all customer payments submitted to TaxMasters are non-refundable. Because customers were not provided written contracts and sales personnel did not reveal the no-refunds policy, customers did not know that they would not be able to recover any installment payments they submitted to TaxMasters – even if they ultimately decide to cancel before TaxMasters actually did any work on their tax case.
The state’s enforcement action also cites TaxMasters for failing to reveal that it would not begin work on a case until all installment payments had been remitted and the entire fee was paid. Multiple complaints indicate that customers entered into an installment agreement with the understanding that TaxMasters would immediately begin work on their case – only to discover later that no action was taken. Customers often learned that there was a problem when they received a notice from the IRS indicating that an important deadline had been missed or that additional fees and penalties had accrued.
Court documents filed by the state also indicate that the defendants failed to disclose TaxMasters’ requirement that customers pay the entire service fee – even if they opt to cancel their contract. Because customers are not provided a written contract, they were not properly informed that agreeing to make a single payment over the telephone obligated them to pay the entire fee quoted by sales personnel. Further, not only did TaxMasters attempt to obligate its customers to a fee in the absence of a signed contract, the defendants used unlawful debt collection tactics to enforce the unauthorized obligation.
According to the state’s enforcement action, the defendants not only failed to disclose material terms and conditions governing its services, but also failed to properly provide the “tax resolution” services that were advertised. Customer complaints obtained by the Attorney General’s Office cite TaxMasters for failing to contact and consult with the IRS on the client’s behalf; failing to appear on the client’s behalf at an IRS audit or hearing; failing to postpone or stop a wage or bank account garnishment; and failing to stop a levy or lien against a client’s property.
When customers who were unhappy with the defendants’ services sought refunds, TaxMasters refused to return the customers’ money. Court documents indicate TaxMasters not only refused to honor refund requests, it also pursued debt collection efforts against clients who cancelled their contracts. The state’s enforcement action charges TaxMasters with unlawfully threatening to pursue customers in Harris County courts, even if those customers did not reside in the county. Under Texas law, entities seeking to enforce a consumer contract can only do so in a county where the agreement was executed or where the consumer resides.
The state's enforcement action is seeking restitution for each TaxMasters customer who was financially harmed by the defendants’ unlawful conduct. In addition, the state is seeking civil penalties of up to $20, 000 for each violation of the Texas Deceptive Trade Practices Act.
There is a potential class-action suit pending. Please contact:
Pam Mitchell
[protected]
Additionally:
If you've been a victim of TaxMasters, below is a good starting list of everyone you should send a letter to, detailing your experience. Signed and mailed letters are often still taken more seriously than an emailed or faxed one. You should also include any/all supporting documentation/evidence.
This really is needed. The sooner these agencies receive more complaints about this company, the more they will investigate.
1. Your state's Attorney General
2. All of your state's Senators and Representatives (Federal and State)
3. All of the following:
U.S. Treasury Department
ATTN: Special Agent Farwell
1919 Smith St.
Suite 2270
Houston, TX 77002
Texas State Board of Public Accountancy
333 Guadalupe, Tower 3, Suite 900
Austin, TX [protected]
Treasury Inspector General for Tax Administration
Hotline
P.O. Box 589
Ben Franklin Station
Washington, DC [protected]
Office of the Attorney General of Texas
PO Box 12548
Austin, TX [protected]
U.S. Department of Justice
Office of Attorney General
950 Pennsylvania Avenue NW
Washington, DC 20530
Internal Revenue Service
Office of Professional Responsibility
SE: OPR, Room 7238/IR
1111 Constitution Avenue NW
Washington, DC 20224
Better Business Bureau of Houston
http://houston.bbb.org/
Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, DC 20580
Mayor Annise D. Parker
City of Houston
P.O. Box 1562
Houston, TX 77251
Do you know if there is a class action law suit against this company. I too have been scammed and have reported them to the Attorney General in Ct.
I cannot believe how they repeat the same tactic over and over and get away with it.
would like to know if there are any lawsuits out there.
Thanks,
Anne
CT
complaints board
It's almost ridiculous when I look at this complaint board regarding Taxmasters. In February of this year I had a levy on my wages that I called Taxmasters to assist me with. I owed approximately 27K and the IRS was stopping at nothing to take from me what little I brought home. I spoke with tax consultant, Brian Gordon and he insisted that he could assist me in saving my paycheck along with my home. I don't know about most of you, but I live paycheck to paycheck and if the IRS would have taken a single paycheck from me then it would have been difficult to maintain my mortgage for more than 1 month. Within 2 weeks Taxmasters had frozen the IRS in their tracks and over the course of the next 4 months they negotiated my debt down to 1100 dollars! I understand that many people feel as if they've been scammed by this company and I can understand why. If I had missed 1 payment to them they would have stopped working for me and my situation would have gone from bad to worse. The expression that you get what you pay for applies in my case. I paid for professional assistance in helping me resolve a tax debt that was threatening to take from me what little I had and the 4800 dollars I paid, although difficult for me to siphon from my limited resources, was well worth the investment. While reading the message board I noticed that one blogger stated that he didn't authorize any payment from his account and Taxmasters took the money anyway. That has to be patently false. Only because they only take credit cards or bank drafts ( I asked). If that blogger didn't give Taxmasters their credit card number of bank account information then it would have been impossible for them to extract any money from that blogger. Also, my credit card information was verified by a second person prior to them debiting my account. I had to essentially give them my credit card information twice before they accepted me as a client! I also noticed that another blogger stated that Taxmasters didn't do anything for a number of months on their case and they are submitting a lawsuit to the State of Texas to get a total refund on their payment. I noticed that I spoke to my case coordinator only 3 times in 4 months but everytime I spoke to him he was professional and helpful. Look, you can't please all the people all the time. My mother would often say that you can't give Christmas turkeys to some people, but Taxmasters is the largest of its kind in the nation which means that apparently more people than not are receiving quality service and getting their issues resolved! The expression goes " Only 2 things definite in this life, Death and Taxes". I submit one more addition to this list... complaining unhappy people. I submit to all who read this blog to not believe everything you read on this website or any other. Use your mind. Taxmasters does wonderful work for the vast majority of their clients and they do crappy work for a select few. If more people like me would tell the stories of how they were helped instead of how they were harmed then this facet of this website wouldn't exist I gather. That's all. Do with this information what you will.
The complaint has been investigated and resolved to the customer’s satisfaction.
there are now 4 federal lawsuits against TaxMasters, for varied reasons:
8 Taxmasters, Inc. (dft) txsdce 4:2010-cv-02373 710 07/02/2010
9 Taxmasters (dft) txsdce 4:2010-cv-02373 710 07/02/2010
10 TAXMASTERS, INC. (dft) paedce 2:2010-cv-03331 480 07/07/2010
11 TAXMASTERS (dft) paedce 2:2010-cv-03331 480 07/07/2010
14 TaxMasters Inc. (cnflck) txsdce 4:2010-cv-03055 710 08/25/2010
15 Taxmasters, Inc. (dft) txsdce 4:2010-cv-03055 710 08/25/2010
16 Taxmasters (dft) txsdce 4:2010-cv-03055 710 08/25/2010
17 Taxmasters, Inc. (dft) txsdce 4:2010-cv-03330 190 09/16/2010
Two federal lawsuits have been filed against TaxMasters and Patrick Cox personally:
Wells et al v. TaxMasters, Inc et al, filed 7/2/2010 regarding Fair Labor Standards
Antkowiak v. Taxmasters et al, filed 7/7/2010 regarding Fair Debt Collection
Well it finally happened -- government action against TaxMasters:
http://www.oag.state.tx.us/oagnews/release.php?print=1&id=3328
FOR IMMEDIATE RELEASE
May 13, 2010
www.texasattorneygeneral.gov CONTACT
Press Office at
[protected]
Houston-based "Tax Resolution" Firm Charged With Unlawful Conduct, Misleading Customers
Texas Attorney General files enforcement action against TaxMasters, Inc.; cites nearly 1, 000 complaints about defendants’ conduct and business practices
HOUSTON – Texas Attorney General Greg Abbott today charged Houston-based TaxMasters, Inc., and its chief executive officer, Patrick Cox, with multiple violations of the Texas Deceptive Trade Practices Act and Texas Debt Collection Act.
According to the state’s enforcement action, the defendants unlawfully misled customers about their service contract terms, failed to disclose its no-refunds policy, and falsely claimed that the firm’s employees would immediately begin work on a case – despite the fact that TaxMasters did not actually start to work on a case until its customers paid in full for services, even if that delayed response meant taxpayers missed significant IRS deadlines.
“In the midst of a national economic downturn, TaxMasters used a nationwide marketing campaign to offer services for distressed taxpayers who needed help dealing with the IRS, ” Attorney General Abbott said. “A state investigation and nearly 1, 000 customer complaints indicate that the defendants routinely misled customers about the nature of their tax resolution service agreements – and worse, attempted to enforce those improper agreements through unlawful debt collection tactics. The state’s enforcement action seeks to prohibit the defendants from continuing to violate the law and seeks restitution for the financially struggling taxpayers who were harmed by the defendants’ unlawful conduct.”
The defendants advertise a tax resolution service for federal taxpayers who have received notice from the IRS of an audit, garnishment, lien, levy or tax deficiency. Citing a self-styled “national advertising campaign” and high-profile “endorsements, ” TaxMasters purports to have “one of the most effective tax relief teams in the tax representation business.” However, a state investigation – and nearly 1, 000 complaints submitted to the Office of the Attorney General and the Better Business Bureau of Houston – indicate that the defendants have unlawfully misled their customers and failed to disclose material facts about their service agreements.
TaxMasters’ advertisements encourage taxpayers to call its toll-free number for a “free consultation” with a “tax consultant.” Court documents filed by the state indicate that callers are not connected to an employee qualified to give tax advice, but rather with a TaxMasters salesperson who recommends a “solution” for between $1, 500 and $9, 000 or more.
According to court documents, many callers were offered an installment plan so that they could pay the defendants’ fee over a specified period of time. However, callers who asked to see written terms and conditions prior to making a payment were informed that a credit card or bank account number is necessary to generate a written TaxMasters service contract. As a result, TaxMasters customers were unaware – and the defendants’ personnel did not have a practice of disclosing – multiple aspects of the TaxMasters service agreement that were harmful to taxpayers.
For example, the defendants did not disclose that all customer payments submitted to TaxMasters are non-refundable. Because customers were not provided written contracts and sales personnel did not reveal the no-refunds policy, customers did not know that they would not be able to recover any installment payments they submitted to TaxMasters – even if they ultimately decide to cancel before TaxMasters actually did any work on their tax case.
The state’s enforcement action also cites TaxMasters for failing to reveal that it would not begin work on a case until all installment payments had been remitted and the entire fee was paid. Multiple complaints indicate that customers entered into an installment agreement with the understanding that TaxMasters would immediately begin work on their case – only to discover later that no action was taken. Customers often learned that there was a problem when they received a notice from the IRS indicating that an important deadline had been missed or that additional fees and penalties had accrued.
Court documents filed by the state also indicate that the defendants failed to disclose TaxMasters’ requirement that customers pay the entire service fee – even if they opt to cancel their contract. Because customers are not provided a written contract, they were not properly informed that agreeing to make a single payment over the telephone obligated them to pay the entire fee quoted by sales personnel. Further, not only did TaxMasters attempt to obligate its customers to a fee in the absence of a signed contract, the defendants used unlawful debt collection tactics to enforce the unauthorized obligation.
According to the state’s enforcement action, the defendants not only failed to disclose material terms and conditions governing its services, but also failed to properly provide the “tax resolution” services that were advertised. Customer complaints obtained by the Attorney General’s Office cite TaxMasters for failing to contact and consult with the IRS on the client’s behalf; failing to appear on the client’s behalf at an IRS audit or hearing; failing to postpone or stop a wage or bank account garnishment; and failing to stop a levy or lien against a client’s property.
When customers who were unhappy with the defendants’ services sought refunds, TaxMasters refused to return the customers’ money. Court documents indicate TaxMasters not only refused to honor refund requests, it also pursued debt collection efforts against clients who cancelled their contracts. The state’s enforcement action charges TaxMasters with unlawfully threatening to pursue customers in Harris County courts, even if those customers did not reside in the county. Under Texas law, entities seeking to enforce a consumer contract can only do so in a county where the agreement was executed or where the consumer resides.
The state's enforcement action is seeking restitution for each TaxMasters customer who was financially harmed by the defendants’ unlawful conduct. In addition, the state is seeking civil penalties of up to $20, 000 for each violation of the Texas Deceptive Trade Practices Act.
Hi,
If you've been a victim of TaxMasters, below is a good starting list of everyone you should send a letter to, detailing your experience. Signed and mailed letters are often still taken more seriously than an emailed or faxed one. You should also include any/all supporting documentation/evidence.
This really is needed. The sooner these agencies receive more complaints about this company, the more they will investigate.
1. Your state's Attorney General
2. All of your state's Senators and Representatives (Federal and State)
3. All of the following:
U.S. Treasury Department
ATTN: Special Agent Farwell
1919 Smith St.
Suite 2270
Houston, TX 77002
Texas State Board of Public Accountancy
333 Guadalupe, Tower 3, Suite 900
Austin, TX [protected]
Treasury Inspector General for Tax Administration
Hotline
P.O. Box 589
Ben Franklin Station
Washington, DC [protected]
Office of the Attorney General of Texas
PO Box 12548
Austin, TX [protected]
U.S. Department of Justice
Office of Attorney General
950 Pennsylvania Avenue NW
Washington, DC 20530
Internal Revenue Service
Office of Professional Responsibility
SE: OPR, Room 7238/IR
1111 Constitution Avenue NW
Washington, DC 20224
Better Business Bureau of Houston
http://houston.bbb.org/
Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, DC 20580
Mayor Annise D. Parker
City of Houston
P.O. Box 1562
Houston, TX 77251
Well the select few you say get crapie service count is up to 459 according to the BBB.
TAXMASTERS SKYROCKETING COMPLAINT RATE from the BBB
8/24/06 - 8/24/07 - 37 complaints filed
8/24/07 - 8/24/08 - 110 complaints filed; 300% INCREASE
8/24/08 - 8/24/09 - 237 complaints filed; 640% INCREASE
9.24.06 - 9.24.09 - 423 complaints filed
10.09.06 - 10.09.09 - 435 complaints files
10.14.09 - 446 Complaints That's 23 in 7 days!
10.16.[protected] more in 2 days)
10.19.09 - 462 One a day
REFUSES TO REFUND $5,000.00
Below is a letter sent to the President and Vice President of TaxMasters...this has been an ongoing issue since January of 2008 and we have gotten no assistance from these scam artists. Please be aware that TAXMASTERS is a FRAUD!
Dear Mr. Cox & Mr. Clamon,
In April 2008 after many attempts to have questions answered by your staff
we terminated TaxMasters services. We could not speak to a representative
capable of answering our inquiries about the status of our account which
lead us to be aware that TaxMasters was questionable. We concluded that
the services agreed upon had never been performed by your company and in
fact never would. We contacted American Express to inform them of your
termination and to prevent any further charges to be made by TaxMasters on
our credit card. You claim that the dispute is unjust for information had
been missing. We provided TaxMasters with ALL DOCUMENTATION REQUESTED and
did so via fax, email and mail. When the IRS informed us in April that you
had never initiated any contact on our behalf we realized that TaxMasters
had no intention of assisting us in our IRS issues. Copies of all tax years
had been forwarded to your company in February 2008 and it is insulting that
TaxMasters has no record of this. You stated that we had not filed for
certain years and we needed to do show proof of filing. All this
information was submitted in February to Salena Shaw and in fact it was sent
at least twice done through fax, email and mail. The statement that years
were missing is very funny since we sent you the balances that were due for
these years. You informed American Express we never requested a refund when
in fact Theresa Pitre responded via Email to our request! The documents
you sent to American Express clearly show that no work had been started on
our account until April 2008. We hired TaxMasters in January 2008 and were
told that the IRS would be contacted immediately. Your employees are filled
with the lies you feed them. If it was not clear WE ARE INSISTING ON A FULL
REFUND IMMEDIATELY! It came as no surprise to us that after we
informed American Express the amount to red flag (912.50 to be exact)
TaxMasters changed the denomination (200+712.50=912.50) on the first month
then those 2 amounts were red flagged and the denomination was changed again
(700+212.50=912.50)was charged the following month. So it is very clear to
see that you know exactly how to get around disputed claims, red flags and
are able to continue to steal from consumers. If this is how you are able
to make your money it is very unfortunate. Hundreds of people have been
swindled by TaxMasters and yet Mr. Cox you allow your staff to practice
these techniques. It is disgusting that we have to send such an email to a
company that runs an ad on CNN. Well we can assure you that a copy of this
will be sent to each program you advertise on. Notification to the Better
Business Bureau has been made and please be advised that this will not stop
until a full refund has been made. Thank you for enlightening 2 more
unsuspecting consumers perhaps our knowledge will help another. We will stop
at nothing to get our money back!
The complaint has been investigated and resolved to the customer’s satisfaction.
Well it finally happened -- government action against TaxMasters:
http://www.oag.state.tx.us/oagnews/release.php?print=1&id=3328
FOR IMMEDIATE RELEASE
May 13, 2010
www.texasattorneygeneral.gov CONTACT
Press Office at
[protected]
Houston-based "Tax Resolution" Firm Charged With Unlawful Conduct, Misleading Customers
Texas Attorney General files enforcement action against TaxMasters, Inc.; cites nearly 1, 000 complaints about defendants’ conduct and business practices
HOUSTON – Texas Attorney General Greg Abbott today charged Houston-based TaxMasters, Inc., and its chief executive officer, Patrick Cox, with multiple violations of the Texas Deceptive Trade Practices Act and Texas Debt Collection Act.
According to the state’s enforcement action, the defendants unlawfully misled customers about their service contract terms, failed to disclose its no-refunds policy, and falsely claimed that the firm’s employees would immediately begin work on a case – despite the fact that TaxMasters did not actually start to work on a case until its customers paid in full for services, even if that delayed response meant taxpayers missed significant IRS deadlines.
“In the midst of a national economic downturn, TaxMasters used a nationwide marketing campaign to offer services for distressed taxpayers who needed help dealing with the IRS, ” Attorney General Abbott said. “A state investigation and nearly 1, 000 customer complaints indicate that the defendants routinely misled customers about the nature of their tax resolution service agreements – and worse, attempted to enforce those improper agreements through unlawful debt collection tactics. The state’s enforcement action seeks to prohibit the defendants from continuing to violate the law and seeks restitution for the financially struggling taxpayers who were harmed by the defendants’ unlawful conduct.”
The defendants advertise a tax resolution service for federal taxpayers who have received notice from the IRS of an audit, garnishment, lien, levy or tax deficiency. Citing a self-styled “national advertising campaign” and high-profile “endorsements, ” TaxMasters purports to have “one of the most effective tax relief teams in the tax representation business.” However, a state investigation – and nearly 1, 000 complaints submitted to the Office of the Attorney General and the Better Business Bureau of Houston – indicate that the defendants have unlawfully misled their customers and failed to disclose material facts about their service agreements.
TaxMasters’ advertisements encourage taxpayers to call its toll-free number for a “free consultation” with a “tax consultant.” Court documents filed by the state indicate that callers are not connected to an employee qualified to give tax advice, but rather with a TaxMasters salesperson who recommends a “solution” for between $1, 500 and $9, 000 or more.
According to court documents, many callers were offered an installment plan so that they could pay the defendants’ fee over a specified period of time. However, callers who asked to see written terms and conditions prior to making a payment were informed that a credit card or bank account number is necessary to generate a written TaxMasters service contract. As a result, TaxMasters customers were unaware – and the defendants’ personnel did not have a practice of disclosing – multiple aspects of the TaxMasters service agreement that were harmful to taxpayers.
For example, the defendants did not disclose that all customer payments submitted to TaxMasters are non-refundable. Because customers were not provided written contracts and sales personnel did not reveal the no-refunds policy, customers did not know that they would not be able to recover any installment payments they submitted to TaxMasters – even if they ultimately decide to cancel before TaxMasters actually did any work on their tax case.
The state’s enforcement action also cites TaxMasters for failing to reveal that it would not begin work on a case until all installment payments had been remitted and the entire fee was paid. Multiple complaints indicate that customers entered into an installment agreement with the understanding that TaxMasters would immediately begin work on their case – only to discover later that no action was taken. Customers often learned that there was a problem when they received a notice from the IRS indicating that an important deadline had been missed or that additional fees and penalties had accrued.
Court documents filed by the state also indicate that the defendants failed to disclose TaxMasters’ requirement that customers pay the entire service fee – even if they opt to cancel their contract. Because customers are not provided a written contract, they were not properly informed that agreeing to make a single payment over the telephone obligated them to pay the entire fee quoted by sales personnel. Further, not only did TaxMasters attempt to obligate its customers to a fee in the absence of a signed contract, the defendants used unlawful debt collection tactics to enforce the unauthorized obligation.
According to the state’s enforcement action, the defendants not only failed to disclose material terms and conditions governing its services, but also failed to properly provide the “tax resolution” services that were advertised. Customer complaints obtained by the Attorney General’s Office cite TaxMasters for failing to contact and consult with the IRS on the client’s behalf; failing to appear on the client’s behalf at an IRS audit or hearing; failing to postpone or stop a wage or bank account garnishment; and failing to stop a levy or lien against a client’s property.
When customers who were unhappy with the defendants’ services sought refunds, TaxMasters refused to return the customers’ money. Court documents indicate TaxMasters not only refused to honor refund requests, it also pursued debt collection efforts against clients who cancelled their contracts. The state’s enforcement action charges TaxMasters with unlawfully threatening to pursue customers in Harris County courts, even if those customers did not reside in the county. Under Texas law, entities seeking to enforce a consumer contract can only do so in a county where the agreement was executed or where the consumer resides.
The state's enforcement action is seeking restitution for each TaxMasters customer who was financially harmed by the defendants’ unlawful conduct. In addition, the state is seeking civil penalties of up to $20, 000 for each violation of the Texas Deceptive Trade Practices Act.
Apparently there is a US Treasury investigation into TaxMasters.
---
US Treasury Department
Attention: Agent Farwell
1919 Smith Street
Suite 2270
Houston, TX 77002
----
And a potential class-action suit:
Pam Mitchell
[protected]
Additionally:
If you've been a victim of TaxMasters, below is a good starting list of everyone you should send a letter to, detailing your experience. Signed and mailed letters are often still taken more seriously than an emailed or faxed one. You should also include any/all supporting documentation/evidence.
This really is needed. The sooner these agencies receive more complaints about this company, the more they will investigate.
1. Your state's Attorney General
2. All of your state's Senators and Representatives (Federal and State)
3. All of the following:
U.S. Treasury Department
ATTN: Special Agent Farwell
1919 Smith St.
Suite 2270
Houston, TX 77002
Texas State Board of Public Accountancy
333 Guadalupe, Tower 3, Suite 900
Austin, TX [protected]
Treasury Inspector General for Tax Administration
Hotline
P.O. Box 589
Ben Franklin Station
Washington, DC [protected]
Office of the Attorney General of Texas
PO Box 12548
Austin, TX [protected]
U.S. Department of Justice
Office of Attorney General
950 Pennsylvania Avenue NW
Washington, DC 20530
Internal Revenue Service
Office of Professional Responsibility
SE: OPR, Room 7238/IR
1111 Constitution Avenue NW
Washington, DC 20224
Better Business Bureau of Houston
http://houston.bbb.org/
Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, DC 20580
Mayor Annise D. Parker
City of Houston
P.O. Box 1562
Houston, TX 77251
Please DON'T respond to the 800 number commercials on Radio & TV stations. They are ALL SCAMS in one way or another. Please DO NOT respond to ANY INTERNET advertisements at all, EVER!
If you REALLY want to try these products, why don’t you simply try the LOCAL STORES FIRST? More often than not, you can probably get the same or similar product LOCALLY.
Think about it, 70% of ALL SCAMS listed on Complaints Board, [redacted], My 3 cents.com, iRipoff .com and others, STARTED with a 800 number commercial you saw on TV or heard on the Radio. Now, what does that tell you about the so-called "truth in advertising" belief that a lot of Americans think about Radio & TV stations and the companies that advertise on them?
The other 30% of the SCAMS are related to the internet or spam emails. When are Americans going to wise up and quit being so GULLIBLE and TRUSTING? You would think some of them were BORN YESTERDAY, so to speak. Babies & children have a good excuse for being gullible and trusting, but adults DO NOT have an excuse, what-so-ever, especially of strangers or "a voice on the phone".
WISE UP AMERICA, YOUR WELL BEING DEPENDS ON IT. Why are we, as Americans, so damn stupid? It amazes me that some of these SCAMMERS are still breathing and living in their condos.
If you MUST respond to these commercials, USE a RE-LOADABLE, DISPOSABLE credit card with only enough money on it to pay for your initial purchase, no more than $10 or $20.00 more. You can keep your loses at a minimum that way. If you have more, they will keep hitting your card to get more and then just try to get a refund.
REMEMBER, the so-called "FREE TRIALS" are NOT free, they will charge you for 1 to 3 months supply of their CRAP, even BEFORE you get the free trial if you use a regular credit card. More often as not, they will also sign you up for another “FREE TRIAL” of some other product and you probably won’t realize they have done this until you get your credit card statement. Quite often, it is very hard, if not impossible, to get the bogus charges removed.
The Tax & Debt Reduction and Real Estate SCAMS for "pennies on the dollar" are especially cruel. The stories about them will break your heart. You WILL LOSE thousands of dollars on them. They are very convincing in their pitch to you. DO NOT believe ANY THING they Say, Claim, or Guarantee, above all, don't give your credit information.
Google their names before you even call them. Check out their reviews.
Please tell EVERYONE you know about these TV and RADIO commercial facts of life.
Fraud and scam!
This company charged me $4, 000 under the pretense that they would renegotiate my $12, 000 debt to the IRS down to about $.30 on the dollar. They were to set up a power of attorney with the IRS and act as my agent to stop any harassment. They were to set up a hearing to renegotiate my debt and ex-IRS agents would use every trick in the book to lower my debt. I hired them November 5, 2007. In March I received a notice from the IRS that I was going into levy. I called Taxmasters repeatedly trying to get someone to tell me what they were doing to stop it. I was passed around to many different people, none of whom had any clue what they were talking about.
Realizing that I was being scammed, I went to the IRS and stopped the lien against my home and set up a payment plan so I could receive my paychecks again. The IRS informed me that Taxmasters never filed a power of attorney with them, and never set up any type of hearing. They took my money and did nothing. I am out $4, 000 and Taxmasters basically told me that since I was foolish enough to sign their agreement they did not owe me a penny back. They justified this by saying I had spoken to one of their people on the phone. That was the service they had provided. Go to the BBB or TX Attorney General before you use them. I have been told they are even under criminal investigation by the Harris County Atty Gen. These people are not even CPAs or attorneys. That is how they claim they owe no professional services. If anyone knows of a class action lawsuit against this company please let me know. I have found many others who have been scammed as well.
My fiance initially agreed to have 500.00 drafted out of his account without checking with me. I had already had my uncle an tax attorney to being tas preparation for him. We followed the step advised by Taxmaster representative to have the initial draft refunded to him. That was June 2011 and now its September and we still have not received the money back. There is no one is QA thats a joke and the CSR girl today said out of her own month that we would have to wait infinity to have the request scheduled for review to see if we are getting the money back...
We hired Taxmasters to represent us to the IRS regarding back taxes. From the VERY 1st DAY when SAMUEL HAMILTON told us he would file our return (a service which we found out later Taxmaster's doesn't provide), and didn't...costing us a $14, 000 late filing fee to this very date, they have done nothing for us. We paid a $7, 000 fee upfront and cannot even get a return phone call or, an answer to an e-mail. BEWARE----TAXMASTERS IS A SCAM. THEY TAKE YOUR MONEY AND DO NOTHING FOR IT. YOU CAN'T GET THROUGH ON THE TELEPHONE TO SPEAK WITH ANYONE. They promise you all kinds of services & that they will help you, then they get their money & you never hear from them again. Do yourself a favor, RUN AWAY (DON'T WALK) FROM TAXMASTERS! Samuel Hamilton I don't know how you sleep at night.
Without Doubt, , the worst company I have ever dealt with in my 40 years in business!
It took "6 MONTHS" to get Taxmasters to move on my problem!
No return calls, no return e-mails, cut off on the phone when I asked to talk to someone, , on hold for half an hour was normal.
Wrote to Patrcik Cox the founder, by certified mail, , , No Response.
Took my money and sat on it for over 6 months.
In the end they did 'nothing'.
I finally elswhere, another tax service.
They started on it the day I paid them and they have it almost finished and solved within a week.
This company is a scam. Once they get your money, good luck with getting help. Paid $2000.00 to get tax relief help. Ended up paying more to the IRS than originally owed! Cannot get anyone to return my phone calls for an explanation. Started working with a fellow named Ryan. Don't know what happened to him. Turned me over to Melody who is never is the office. (If there is an office). DO NOT USE TAXMASTERS.
TAXMASTERS CHARGED ME $1500 AND I DIDN'T EVEN SIGN MY NAME ON ANY DOCUMENTS FROM THEM. THEY DID NOT PROVIDE ANY SERVICES AND WILL NOT REFUND ME.
This Company promised to get our $12, 000 tax debt resolved. Company charged $3, 600 and did nothing to resolve the debt. After many calls they requested more money. This company is a scam. please tell me of any class action lawsuits as I would like to file.
took my money and never attemted to do anything for 3 years finally they got me a deal pay 254 a month tilll 14000.00 was paid
Company took money up front to reduce taxes thru negotiations with the irs. never got return calls or updates asked several time if they even had a location. going on for a year and the irs still sends letters to me. total fraudulent company someone needs to shut them down and return everyones money.
took money for services that they have not provided
I hired TaxMasters to help resolve my tax issues - to date they have done nothing. I hired then on November 7th 2007. I originally spoke with Brian Gordon, then since I have spoken to several people that have come and gone from the employ of the company. I have made numerous phone calls and sent multiple emails. I get the run around that someone will get back to me. However, I do not hear from them until I call or email then they again state that someone will contact me.
I grew tired of the problems and hired a local Tax professional to assist me with my taxes. I still need to make arrangements with the IRS and Maryland regarding my owed taxes but at least they are now at a manageable level due to the assistance of the CPA. I am wanting a complete refund from Tax Maters - the amount that I paid them will help resolve a good portion of my tax debt.
I have also filed a complaint with the Houston BBB - let's see what happens!
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