Taxmasters Files for Chapter 11

Taxmasters filed Chapter 11 reorganization documents in federal court on Sunday. The filing says the tax resolution company has assets of less than $50,000. It estimates the company's liabilities at a minimum of $1 million and possibly as high as $10 million.

The state is suing Taxmasters for violating the Texas Deceptive Trade Practices Act. It says Taxmasters commercials encourage people to call for a free consultation with a tax specialist. Prosecutors say the calls are answered by salespeople unqualified to provide tax advice.

Company founder and president Patrick Cox fronts the company's national advertising campaign.

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