For years JG Tax Group has been attempting to educate the public of the dangers of working with a tax resolution firm. Read on below to see how one of the largest in the industry, TaxMasters, has been charged with unlawful conduct and deceptive trade practices.
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 misledcustomers 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
