Tuesday, March 20, 2012

TaxMasters Bankruptcy Update and Caption Contest!

Remember when I stated that TaxMasters had secured $25 Million in funding?

Well, now I’m kind of wondering where all those millions went. Did they already empty it into their advertising budget (which takes up about 37% of their spending)? That may be the case, because TaxMasters has filed for bankruptcy (TaxMasters Inc., 12-32065).

Due to the many lawsuits spearheaded by several attorneys general, TaxMasters has been a sinking ship. TaxMasters promised the world to worried taxpayers, just like JK Harris and Roni Deutch did. Much more often than not, the company completely failed to follow through on their promises. In fact, it did little at all to help their clients through their difficult situation. They refused to do any work until the client was paid in full, which often resulted in missed deadlines and aggressive IRS collection actions.

I guess they should have applied a higher percentage of their budget to competent tax attorneys, CPA’s, and enrolled agents. The infamous, red-bearded tax resolution company has reported that they owe $1-$10 Million in debt to somewhere between 1,000 to 5,000 creditors. You would think $25 million might have covered that…….but it seems that TaxMasters has less than $50,000 in assets. No wonder this company was crummy handling other people’s tax problems. It can’t even balance its own budget.

I think this finally puts to bed the rumor many of my competitors have been spreading that a BBB rating is not a reflection of a company’s performance. Let’s take a look at the following companies that have been forced to shut their doors for good due to their unscrupulous practices:

American Tax Relief

  • F rating with the BBB (not accredited)
  • The FTC forced it to shut down for criminal activities.

Roni Deutch

  • Currently “No Rating” – Formerly F rating with the BBB (not accredited)
  • The “Tax Lady” was forced to give up her practice by the government.

JK Harris

  • F rating with the BBB (not accredited)
  • Forced to shut its doors due to the inability to pay back its creditors and get adequate funding to restructure the company.

As for TaxMasters, declaring bankruptcy doesn’t mean it is necessarily closed. Just look at how long JK Harris operated after it filed. However, I do believe we are looking at the last days of being forced to look at Patrick Cox’s awkwardly turned head on sleazy midnight ads. However, there are other less famous companies out there that are just as unethical. Remember these tips when looking for the best help:
  • A good BBB rating (at least a B)
  • A company that has been open for at least several years
  • Real tax professionals (this means tax attorneys, enrolled agents, and CPA’s)
  • No retainer fees (a retainer fee doesn’t mean your case is being worked on)
  • Willingness to work on your case without all the fees upfront
  • Honest advice given only after thoroughly examining your situation
  • No “too good to be true” promises in your first conversation

Now for the FUN part of this blog post!


When looking at this still shot from ABC News, a number of captions came to me. I thought perhaps something along the lines of "37% of TaxMasters' budget goes to advertising. 63% goes to the Patrick Cox Hot Dog Fund" would be fitting. However, I think there's probably a lot of you out there who have much funnier captions to contribute! All you'll win is bragging rights by being featured and then some chuckles when you read all the entries. Just leave your entry in the comments below or email me at thehitman@irs-hitman.com. I will declare a winner next Tuesday! So, get busy!

If you need real tax help, don’t call up some fraud. Get help from the best tax professionals in the industry! Call 888-415-1337 or fill out the form for a free consultation with the IRS Hitman Team today!


MarkCloud said...

In the amended words of Matt Foley, "Scamming taxpayers who already owe the IRS? You could end up like me - eating a steady diet of government cheese and living in a van down by the river!"

j.b.1311 said...

Local news team found harassing man believed to be Sasquatch. It was later revealed the man was actually Patrick Cox of Tax Masters. When asked about the incident, the reporter responded, "Well I've never seen his whole face, so I didn't recognize him right away."
In a related note, an external poll found 32% of Americans are unable to recognize Mr. Cox's full face, while 15% still believe Mr. Cox is Sasquatch.

Know Your Meme said...
This comment has been removed by the author.
Know Your Meme said...

Well I always love a good Tax Master

So I'd say, "Tax Masters has the biggest CEO on the block"

Tax Master on Know your Meme

My favorite has always been This PHOTO

Kevin Mark said...

I think just filing taxes is tough enough, more or less having to pay them and always keeping them ready is much more troublesome. Permitting an expert handle even the most basic tax concerns is the best route to take. Yet, you might have to make certain you choose somebody trustworthy and that's not simple and easy too. This is exactly why I am pleased I came across ConsumerTaxReports.Org due to the fact they do all the exploration for you. They have critiques and the costs for many tax relief companies. I think it's better yet for people who've been hurt by Tax Masters, Roni Deutsch and JK Harris (or additional con companies). Http://www.consumertaxreports.org

taxhelpOK.com said...

The new exercise sensation: Chapter 7 abs! Dear Trustee, please leave this debtor's shirt...on!

loopbankruptcy said...
This comment has been removed by a blog administrator.
Tom Hardy said...

This is just pure genius! But extending from not only tax collectors but also a personal injury attorney from Oak Forest? Would you recommend this course of action?

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