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I called Mr. Cory McAllister Certified Tax Consultant™ on Thursday March 13, 2008. I told him that I was currently filing Form 656; which is an “Offer in Compromise", with the I.R.S. and that I only had 2 months to submit the form.
Mr. McAllister stated “no problem the first thing Tax Masters will do is contact the I.R.S. and put a freeze on my account and notify them that you have signed over power of attorney and that Tax Masters is representing you”.
Mr. McAllister also explained to me not to contact the I.R.S. He said TAX MASTERS will handle all correspondence with I.R.S. from this point forward. So, I leave it with Mr. McAllister and his staff (BAD MISTAKE).
On Wednesday, April 23, 2008 I received a call from my payroll manager saying she has just received a “Notice of Levy to Garnish Wages" by the I.R.S.
I called the I.R.S. on April 25, 2008 and got the lien garnishment lifted and it didn't cost me a dime. The I.R.S. told me all this could have been avoided with just one phone call asking for an extension. Mr. McAllister stated Tax Masters definitely called the I.R.S. to get tax information, but did not notify the I.R.S. that they were representing me.
All Mr. McAllister, Juanita or Celina (my assigned case workers, which are really file clerks) had to do was to call the I.R.S. office and let them know that Tax Masters is now representing me. Imagine that!
In fact, my payroll manager told me that when she called the I.R.S. they told her no one from Tax Masters has ever contacted the I.R.S. office. When I spoke with the I.R.S, I asked if any representative from Tax Masters has ever contacted them and they told me “NO". (I have names and badge numbers of I.R.S. agents).
Due to the fact that TAX MASTERS mislead, lied and has put me in a worse situation with the I.R.S. than I was before, I sent a certified letter requesting a “FULL REFUND" to be credited back to my credit card. When I called back and spoke with Mr. McAllister he told me Tax Masters never received any letter of cancellation. I told him that I sent it certified mail via U.S.P.S. with a Track & Confirm update, and signature of Tax Masters representative who signed for it.
Tax Masters has done absolutely nothing for me and I cannot imagine how they are still in business.
This company has an unsatisfactory report for a pattern of complaint activity regarding refunds and service. It is obvious that Tax Masters did nothing to help me and has not provided the service they claim and promise to do.
There are numerous complaints through the Houston BBB, independent blogs, and complaint boards that cite issues very similar to mine that people have had with Taxmasters. When you add it all up, many people have lost hundreds of thousands of dollars by contracting Tax Masters.
On December 4, 2008, I contacted my attorneys in California and their firm is looking into filing a class action lawsuit against Tax Masters - Patrick R. Cox and Fred Hackett.
If all goes well there will be TV and radio commercials announcing this notice.
I encourage all interested parties to join this class action lawsuit to hopefully put Patrick R. Cox, Fred V. Hackett and Alex Clamon of Tax Masters out of business and get our money back, and put an end to these predatory vultures who prey on people financially unable to fight back!
Agencies to file complaints against Tax Master:
* Texas State Board of Accountancy
* Join the class action lawsuit against Tax Masters
* Better Business Bureau of Houston
* State Attorney Generals Office
* Harris County Government
* Consumer Affairs Offices
* Texas bar Association
* File a Rip-off
* File a complaint with the office of Professional Responsibility at the IRS
The complaint has been investigated and resolved to the customer’s satisfaction.
![Santa Barbara Tax Products Group [SBTPG] Reviews](/images/business/48-48/122854/santa-barbara-tax-products-group-sbtpg.png)
Email us at fedthomasloan@aol.com for urgent loan
I too have been a victim of TaxMaster fraud! We have paid at least $3k+ on our so-called account. They did promise to call IRS on our behalf to freeze things, never happened. Also told us not to talk to the IRS as they were taking care of everything, never happened. I am not rich, I merely needed help in resolving our debt to IRS. I am now out of this money that I could have really used to make payments to the IRS. And they have no compassion. I would very much like to be included in a class action suit, if it ever happens.
diamondgirl77777@aol.com
Folks be careful with class action suits. Typically the lawyers are the only ones that win. The vast majority of class action lawsuits are ended with the lawyers getting 33.3% or more and ALL of the victims splitting the amount awarded by the court. The BlockBuster lawsuit saw the lawyers getting millions and the people injured in the suit were given 4 dollar coupons. IF you were truly harmed by them you'd probably be better seeking an attorney on your own. If for example you lost 5K to them after a class action is done you'd probably get 300 dollars depending on how many are involved. Don't believe me? do some research on this topic.
The PA class action suit has made it around the arbitration clause in the contract. TaxMasters filed a motion to compel arbitration, which was denied on 3/17/11.
there are now 4 federal lawsuits against TaxMasters, for varied reasons:
8 Taxmasters, Inc. (dft) txsdce 4:2010-cv-02373 710 07/02/2010
9 Taxmasters (dft) txsdce 4:2010-cv-02373 710 07/02/2010
10 TAXMASTERS, INC. (dft) paedce 2:2010-cv-03331 480 07/07/2010
11 TAXMASTERS (dft) paedce 2:2010-cv-03331 480 07/07/2010
14 TaxMasters Inc. (cnflck) txsdce 4:2010-cv-03055 710 08/25/2010
15 Taxmasters, Inc. (dft) txsdce 4:2010-cv-03055 710 08/25/2010
16 Taxmasters (dft) txsdce 4:2010-cv-03055 710 08/25/2010
17 Taxmasters, Inc. (dft) txsdce 4:2010-cv-03330 190 09/16/2010
Tax Masters stole $10, 000 from us this year. After paying them for their services in 2 lump sum payments over 2 days we never heard from them. We figured out they were scam artists after a couple months and wrote a letter demanding our money back. Never heard a word! Please let us know of any class action law suit against them. Patrick Cox and his followers are ripping off innocent victoms who are seeking direction and help with Tax Issues. ericbkesler@hotmail.com
Two federal lawsuits have been filed against TaxMasters and Patrick Cox personally:
Wells et al v. TaxMasters, Inc et al, filed 7/2/2010 regarding Fair Labor Standards
Antkowiak v. Taxmasters et al, filed 7/7/2010 regarding Fair Debt Collection
** FILE AN SEC COMPLAINT AGAINST TAXMASTERS HERE **
Tax Masters can't be trusted
Tax Mmasters should be shut down. How come they can't pay their health insurance premiums when they reported to the Securities and Exchange Commission that they took in over $11 million dollars through March 31, 2010 AND had CASH to the tune of over $4 million during that same period. I wonder whether the numbers Tax Masters gave the SEC are correct. Could it be that Tax Masters has committed stockholder fraud by not disclosing accurate financial information on their SEC documents. If you feel the same way as I do and want to complain to the SEC as well as the Texas Attorney General and joining the class action lawsuit, you can file a complaint with the SEC by using the following website: http://www.sec.gov/complaint.shtml
http://www.oag.state.tx.us/oagnews/release.php?print=1&id=3328
FOR IMMEDIATE RELEASE
May 13, 2010
www.texasattorneygeneral.gov CONTACT
Press Office at
[protected]
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 misled customers 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’ advertisements encourage taxpayers to call its toll-free number for a “free consultation” with a “tax consultant.” Court documents filed by the state indicate that callers are not connected to an employee qualified to give tax advice, but rather with a TaxMasters salesperson who recommends a “solution” for between $1, 500 and $9, 000 or more.
According to court documents, many callers were offered an installment plan so that they could pay the defendants’ fee over a specified period of time. However, callers who asked to see written terms and conditions prior to making a payment were informed that a credit card or bank account number is necessary to generate a written TaxMasters service contract. As a result, TaxMasters customers were unaware – and the defendants’ personnel did not have a practice of disclosing – multiple aspects of the TaxMasters service agreement that were harmful to taxpayers.
For example, the defendants did not disclose that all customer payments submitted to TaxMasters are non-refundable. Because customers were not provided written contracts and sales personnel did not reveal the no-refunds policy, customers did not know that they would not be able to recover any installment payments they submitted to TaxMasters – even if they ultimately decide to cancel before TaxMasters actually did any work on their tax case.
The state’s enforcement action also cites TaxMasters for failing to reveal that it would not begin work on a case until all installment payments had been remitted and the entire fee was paid. Multiple complaints indicate that customers entered into an installment agreement with the understanding that TaxMasters would immediately begin work on their case – only to discover later that no action was taken. Customers often learned that there was a problem when they received a notice from the IRS indicating that an important deadline had been missed or that additional fees and penalties had accrued.
Court documents filed by the state also indicate that the defendants failed to disclose TaxMasters’ requirement that customers pay the entire service fee – even if they opt to cancel their contract. Because customers are not provided a written contract, they were not properly informed that agreeing to make a single payment over the telephone obligated them to pay the entire fee quoted by sales personnel. Further, not only did TaxMasters attempt to obligate its customers to a fee in the absence of a signed contract, the defendants used unlawful debt collection tactics to enforce the unauthorized obligation.
According to the state’s enforcement action, the defendants not only failed to disclose material terms and conditions governing its services, but also failed to properly provide the “tax resolution” services that were advertised. Customer complaints obtained by the Attorney General’s Office cite TaxMasters for failing to contact and consult with the IRS on the client’s behalf; failing to appear on the client’s behalf at an IRS audit or hearing; failing to postpone or stop a wage or bank account garnishment; and failing to stop a levy or lien against a client’s property.
When customers who were unhappy with the defendants’ services sought refunds, TaxMasters refused to return the customers’ money. Court documents indicate TaxMasters not only refused to honor refund requests, it also pursued debt collection efforts against clients who cancelled their contracts. The state’s enforcement action charges TaxMasters with unlawfully threatening to pursue customers in Harris County courts, even if those customers did not reside in the county. Under Texas law, entities seeking to enforce a consumer contract can only do so in a county where the agreement was executed or where the consumer resides.
The state's enforcement action is seeking restitution for each TaxMasters customer who was financially harmed by the defendants’ unlawful conduct. In addition, the state is seeking civil penalties of up to $20, 000 for each violation of the Texas Deceptive Trade Practices Act.
I have also been scammed by Tax Masters a couple of years ago. I grew exhausted trying to contact them and voice my complaints to no avail. I have emails saved proving this, in case it's ever needed. I lost around $3500 to them, money which could have gone to the IRS for my back taxes. What a mistake. I saw the Tax Master commercials on CNN Headline News repeatedly (there are still advertising on CNN by the way) and thought that it was a reputable station for advertisement. It sickens me to still see Patrick Cox's face nearly every day advertising this scandalous business. Please contact me if any class-action lawsuits are filed. I will gladly participate. Thank you.
r22anderson@yahoo.com
I called a firm out of California but she was in a meeting...I don't feel they will call back...I am going to call the FBI next...In case anyone is curious...You need to file complaints and follow-up with a call to the agencies that you complain to and ask the status of the complaint...on a good note Texas says there is an investigation...I recently got a letter from the subject...They say they will expect me to pay the full fee because I entered into a 3rd party contract and if I don't continue to pay they will persue collections...I feel sorry for the first one to call...I will be bleeping. My bank has been informed and the wall is up Joe. I would gladly see you in court. I will make sure that the room is full.
Alot of these posts are over one year old...Why are they still in business...I am a recent sucker...I will press until they refund my money...It is disturbing that they have not been stopped...kinda shows the bad side of Texas Law.
You should never hire someone based solely on hype, advertising, or recommendations from "friends". Always do background checks on the people or firms you are looking to hire, before you hire them. In the age of Internet it is so easy to run their name through Google and see what you can find out about them and what complaints they have. One hour of research over the Internet may save you thousands of dollars and a lot of headaches.
I'm a licensed CPA with over 25 years of experience in tax problem solving and IRS representation. You can find a lot of useful free information and tips on IRS and tax problem solving on my website at: www.TaxProblem.org
Man I wish I would have seen this article two years ago. I paid "Taxmasters" over $4000 to help me with my tax debt. It took over a year just to get something together and surprise surprise it was an Offer in Compromise. Even after I told them repeatedly I didnt feel I was a candidate based on my debt to income ratio. It was filed anyway, denied, and by this time my tax debt has actually grown due to interest & penalties. So after not getting a call back for over 3 months, over 100 unanswered emails, and having to get another lawyer just to get a response from Taxmasters, I finally handled the entire payment agreement with the IRS myself and finally feel some sort of relief.
STAY AWAY!
IF there is a class action PLEASE contact me. jdclytn@msn.com
1. There used to be a huge blog filled with TaxMasters stories and complaints. They sued the guy and he took it down. Here's an archive of it though:
http://web.archive.org/web/20080621192338/www.enormousincongruities.com/2006/02/22/tax-masters/
Apparently there is a US Treasury investigation into TaxMasters.
---
US Treasury Department
Attention: Agent Farwell
1919 Smith Street
Suite 2270
Houston, TX 77002
----
And a potential class-action suit:
Pam Mitchell
[protected]
I too, have been scammed by these idiots. I have been screwed around with since July 2008! They took $6500 from me and have never done a thing. I have been trying for a year to get my money refunded. I am so frustrated and want to see these crooks pay everyone back and get shut down!
Pat Cox is currently a Certified Public Accountant licensed by the State of Texas (http://www.tsbpa.state.tx.us/macros/OD007.ndm/DETAIL?ID=055358 ). Your complaints about his deficiencies can be filed with the Texas State Board of Public Accountancy to get him sanctioned and and possibly shut down for discreditable acts against the profession.
I've been attempting to get my money back from them for months... I've attached a screen captured picture of one of the many comments I've left on their site that have never been addressed but are always somehow deleted...
You can contact me a coveringyourass@yahoo.com
Don't be afraid to ask for help... I'll do anything I can to drag this ongoing criminal enterprise into court before the statute of limitations runs out on their crimes and they can no longer be sued or prosecuted...
Can anyone tell me the best way to join the class action suit. I've lost over 3000 dollors and they need to be stopped. They just about had me lose my house and job because of a tax levy on my payroll checks. you can contact me at jdjohnson696@yahoo.com
Got me. A guy who is usually good at detecting "sheep with wolf breath". UNBELIEVEABLE! Now I have a levy on my wages. I can be reached at ilewiz@hotmail.com
I am interested in joining the class action suit. Lost over $5000.00 in 9 months with absolutley no service, just pain, heartache, and pure hell! They are a rip-off and need to be stopped ASAP!
I can be reached at polkadot2u@hotmail.com
Thanks.
Sign me up for any class action lawsuit. TM stole 7k from my account and caused overdrafts to the tune of over $800.00. You can email me at inteioper@aol.com
Please let me know how I can be involved in the class action lawsuit. My email... freide.lou@gmail.com.
My situation is stimilar to yours... TaxMasters is a SCAM. They do not help you at all. They do not fully disclose billing options, misrepresent their services, have horrible customer service (if any) and don't do a thing even though IRS puts garnishment on your wages. I started with them Jan. 2009, got hit with a wage garnishment Aug. 2009. Did NOT receive any notification that this was going to occur. Send them multiple communications, in writing, because I don't trust them and NOTHING. Definitely, non-responsive.
My contacts have been DaMaris Givens - case coordinator and Delmar Hunter - tax analyst.
Did anyone notice the TxMstr advertisement on the top of this page?
I would join a suit if one was filed, I don't have the time, money, or health to deal with one by myself. I can be reached at antkojm1 [at] gmail [dot] com
I am in the same boat as well.
Has anyone made any progress on this at all?
I am also in the same boat, please keep me informed of any class action lawsuit that may happen on this. My wife and I were also victims to this. I did research before we went with this company but unfortunately did not find the proper sites otherwise we would not have signed up with this group. I have filed complaints with the State Attorney General's office of Texas, Better Business Bureau and also with the Federal Trade Commission due to business practices. Please keep me informed and updated on the class action lawsuit through email at joshcasillas@cox.net.
claude lorey April 10th, 2009 10:37 am
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On Feb 6th 2009 I contacted Tax Masters & received prompt attention. I explained my situation to Mr David Bland & he quickly came up with a fee of $5750. for your services. I explained that in order to pay the fees I would need a loan from my employer. He said no problem, can we draft $750 today to protect you. I agreed. I signed your agreement in the belief that my employer would loan me the $5000 balance. On Feb 26th 2009 I called Tax Masters to inform them that I was unable to get a loan for the $5000. balance and to stop the automatic draft for $1250. I was transferred from department to department telling my story that I did not have the money to cover this draft…to no avail. Since this time my life has become a living HELL! with hundreds of dollars in overdraft fees, no access to my funds because you continue draft on my account. no way to pay rent, food or child support to my ex-wife. My bank said there is nothing they can do. I am now forced to have my employer withdraw my direct deposit and walk away from my -$2500.00 bank account. the only thing that I have received from Tax Masters is Consultation Results Letter. Pretty Sad! as of right now, Tax Masters has collected $3250.00 for a consultation which on their website said was FREE! they will not respond to my E- mails or return my calls
I would like the name and contact information for any Houston area attorney who has successfully recovered monies for a client wronged by Tax Masters out of Houston, Texas.
Taxmasters of fraud. We would like to help anyone's case. Contact us at Daaswuzup@aol.com
Tax Masters of Fraud got us. Please contact us at Dirtyloop@aol.com
Tax Masters ripped me off, I was contacted by Ill. BBB in Chicago the local news media is gathering names of people ripped off by Tax Masters, please contact Ill.BBB out of Chicago to finally shine the light under the rock these cowards hide under. Also please email me on info to join class action lawsuit to jaymcm59@yahoo.com thanks
Please let me know if the lawsuit happens...we are in the same boat. emcglone@mac.com
Edie
Please notify me at mkrn1995@msn.com if this class action lawsuit happens. I too have fallen victum to their scam.
Michelle