How the TaxMasters failed to provide the expected services to the taxpayers?

Houston is a great city.  It is a city that works.  It has been home to a number of interesting characters.  In the tax world, it is known for being the home to businesses like Enron and TaxMasters--the now defunct tax resolution company--that met their demise due to their tax problems. 

Before its demise, TaxMasters was one of the largest tax resolution firms around.  It reported over $40 million in revenue in 2010.  Its offices occupied over 120,000 square feet and paid out nearly $20 million in wages to its employees. 

TaxMaster’s public filings indicate that its competitors included several other large and now defunct tax resolution companies, such as JK Harris, and smaller law and accounting firms. 

So how did it die?  That is a complicated question.  The short version is that it provided promises that it did not keep, it took client funds and failed to perform the services, and it did not refund monies to client that it should have.  Poor management and hiring employees who have no tax experience were at the core of the problem.  TaxMaster’s demise was widely publicized and it left a lasting impression about how the tax resolution firms operate in Houston. 

There are a number of firms that have sprung up to take TaxMasters place.  Some even hired the very same employees and continued on with the very same practices as TaxMasters.  These firms advertise heavily on TV and radio as TaxMasters did.  They hire inexperienced staff to do the work and charge high fees for doing the work. 

We address some of these issues on our blog at www.irstaxtrouble.com.  Please visit our blog or call us at 713-909-4906 to learn more.