AG Sues Houston Tax Resolution Company

After receiving hundreds of consumer complaints, the Texas Attorney General’s Office has filed a lawsuit against a well-known Houston-based tax resolution company. The legal action comes as no surprise to some who have done business with the company.

“I’m Patrick Cox, founder of TaxMasters. The former IRS agents and tax professionals at TaxMasters will solve your tax problems.”

You’ve probably seen the television commercials….they run nationwide, touting the services TaxMasters offers to people who have issues with the IRS.

Although I was able to recover my money in the end, my personal experience with TaxMasters was in every way horrible.”

Arch Currid of the Woodlands decided to use TaxMasters to help resolve an IRS issue last year. After a brief conversation with a representative who e-mailed him a contract, he decided not to use the service and e-mailed back that he had decided to use a tax attorney instead. Later, his credit card was charged $5000. It took him months to clear the charge through his credit card company. He says TaxMasters never responded.

“After I hung up the phone, I never was able to get anyone else on the phone. All of my correspondence was basically through the Better Business Bureau.”

“TaxMasters currently has an “F””

Monica Russo is with the Greater Houston Better Business Bureau and says consumers have filed almost 700 complaints against TaxMasters over the past three years.

“A company earns an “F” grade by having unresolved or unanswered complaints and in this case, TaxMastersreplaced In has 231 unresolved complaints.”

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In a lawsuit filed in Travis County, Attorney General Greg Abbott is asking for what he calls injunctive relief against TaxMasters and wants to the company to pay both civil penalties and restitution to victims.

“TaxMasters advertises that customers can receive a free consultation, but customers are mislead into paying thousands of dollars up front and they aren’t told that money is non-refundable. They also aren’t told that TaxMasters won’t begin working on the customer’s project unless and until all of those pre-announced amounts are fully paid.”

The company’s Dwayne Logan says for the most part, TaxsMasters 40,000 customers nationwide have no complaints about the service.

“Over 95-percent of our clients are very satisfied with our service. We help clients every day get their IRS problems resolved and we’re a very, very good company to deal with. I think if you talk to most of our clients, they’d be very happy with our service.”

He says TaxMasters is working with the Attorney General’s office to resolve the issues outlined in the lawsuit. Attorney General Abbott says customers who have had issues with the company can contact his office.

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