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Taxmasters / REFUSES TO REFUND $5,000.00

1 900 Town & CountryLane Suite 400Houston, TX, United States Review updated:
Contact information:
Phone: 281-497-5937

Below is a letter sent to the President and Vice President of TaxMasters...this has been an ongoing issue since January of 2008 and we have gotten no assistance from these scam artists. Please be aware that TAXMASTERS is a FRAUD!!!

Dear Mr. Cox & Mr. Clamon,

In April 2008 after many attempts to have questions answered by your staff
we terminated TaxMasters services. We could not speak to a representative
capable of answering our inquiries about the status of our account which
lead us to be aware that TaxMasters was questionable. We concluded that
the services agreed upon had never been performed by your company and in
fact never would. We contacted American Express to inform them of your
termination and to prevent any further charges to be made by TaxMasters on
our credit card. You claim that the dispute is unjust for information had
been missing. We provided TaxMasters with ALL DOCUMENTATION REQUESTED and
did so via fax, email and mail. When the IRS informed us in April that you
had never initiated any contact on our behalf we realized that TaxMasters
had no intention of assisting us in our IRS issues. Copies of all tax years
had been forwarded to your company in February 2008 and it is insulting that
TaxMasters has no record of this. You stated that we had not filed for
certain years and we needed to do show proof of filing. All this
information was submitted in February to Salena Shaw and in fact it was sent
at least twice done through fax, email and mail. The statement that years
were missing is very funny since we sent you the balances that were due for
these years. You informed American Express we never requested a refund when
in fact Theresa Pitre responded via Email to our request!!! The documents
you sent to American Express clearly show that no work had been started on
our account until April 2008. We hired TaxMasters in January 2008 and were
told that the IRS would be contacted immediately. Your employees are filled
with the lies you feed them. If it was not clear WE ARE INSISTING ON A FULL
REFUND IMMEDIATELY!!! It came as no surprise to us that after we
informed American Express the amount to red flag (912.50 to be exact)
TaxMasters changed the denomination (200+712.50=912.50) on the first month
then those 2 amounts were red flagged and the denomination was changed again
(700+212.50=912.50)was charged the following month. So it is very clear to
see that you know exactly how to get around disputed claims, red flags and
are able to continue to steal from consumers. If this is how you are able
to make your money it is very unfortunate. Hundreds of people have been
swindled by TaxMasters and yet Mr. Cox you allow your staff to practice
these techniques. It is disgusting that we have to send such an email to a
company that runs an ad on CNN. Well we can assure you that a copy of this
will be sent to each program you advertise on. Notification to the Better
Business Bureau has been made and please be advised that this will not stop
until a full refund has been made. Thank you for enlightening 2 more
unsuspecting consumers perhaps our knowledge will help another. We will stop
at nothing to get our money back!!!

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  • Ch
      11th of Feb, 2009
    0 Votes

    Please DON'T respond to the 800 number commercials on Radio & TV stations. They are ALL SCAMS in one way or another. Please DO NOT respond to ANY INTERNET advertisements at all, EVER!

    If you REALLY want to try these products, why don’t you simply try the LOCAL STORES FIRST? More often than not, you can probably get the same or similar product LOCALLY.

    Think about it, 70% of ALL SCAMS listed on Complaints Board, [redacted], My 3, iRipoff .com and others, STARTED with a 800 number commercial you saw on TV or heard on the Radio. Now, what does that tell you about the so-called "truth in advertising" belief that a lot of Americans think about Radio & TV stations and the companies that advertise on them??

    The other 30% of the SCAMS are related to the internet or spam emails. When are Americans going to wise up and quit being so GULLIBLE and TRUSTING?? You would think some of them were BORN YESTERDAY, so to speak. Babies & children have a good excuse for being gullible and trusting, but adults DO NOT have an excuse, what-so-ever, especially of strangers or "a voice on the phone".

    WISE UP AMERICA, YOUR WELL BEING DEPENDS ON IT. Why are we, as Americans, so damn stupid? It amazes me that some of these SCAMMERS are still breathing and living in their condos.

    If you MUST respond to these commercials, USE a RE-LOADABLE, DISPOSABLE credit card with only enough money on it to pay for your initial purchase, no more than $10 or $20.00 more. You can keep your loses at a minimum that way. If you have more, they will keep hitting your card to get more and then just try to get a refund.

    REMEMBER, the so-called "FREE TRIALS" are NOT free, they will charge you for 1 to 3 months supply of their CRAP, even BEFORE you get the free trial if you use a regular credit card. More often as not, they will also sign you up for another “FREE TRIAL” of some other product and you probably won’t realize they have done this until you get your credit card statement. Quite often, it is very hard, if not impossible, to get the bogus charges removed.

    The Tax & Debt Reduction and Real Estate SCAMS for "pennies on the dollar" are especially cruel. The stories about them will break your heart. You WILL LOSE thousands of dollars on them. They are very convincing in their pitch to you. DO NOT believe ANY THING they Say, Claim, or Guarantee, above all, don't give your credit information.

    Google their names before you even call them. Check out their reviews.

    Please tell EVERYONE you know about these TV and RADIO commercial facts of life.

  • Tx
      15th of Mar, 2010
    0 Votes

    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
    (504) 234-5202


    If you've been a victim of TaxMasters, below is a good starting list of everyone you should send a letter to, detailing your experience. Signed and mailed letters are often still taken more seriously than an emailed or faxed one. You should also include any/all supporting documentation/evidence.

    This really is needed. The sooner these agencies receive more complaints about this company, the more they will investigate.

    1. Your state's Attorney General
    2. All of your state's Senators and Representatives (Federal and State)
    3. All of the following:

    U.S. Treasury Department
    ATTN: Special Agent Farwell
    1919 Smith St.
    Suite 2270
    Houston, TX 77002

    Texas State Board of Public Accountancy
    333 Guadalupe, Tower 3, Suite 900
    Austin, TX 78701-3900

    Treasury Inspector General for Tax Administration
    P.O. Box 589
    Ben Franklin Station
    Washington, DC 20044-0589

    Office of the Attorney General of Texas
    PO Box 12548
    Austin, TX 78711-2548

    U.S. Department of Justice
    Office of Attorney General
    950 Pennsylvania Avenue NW
    Washington, DC 20530

    Internal Revenue Service
    Office of Professional Responsibility
    SE: OPR, Room 7238/IR
    1111 Constitution Avenue NW
    Washington, DC 20224

    Better Business Bureau of Houston

    Federal Trade Commission
    Consumer Response Center
    600 Pennsylvania Avenue, NW
    Washington, DC 20580

    Mayor Annise D. Parker
    City of Houston
    P.O. Box 1562
    Houston, TX 77251

  • Tx
      4th of Jun, 2010
    0 Votes

    Well it finally happened -- government action against TaxMasters:

    May 13, 2010 CONTACT
    Press Office at
    (512) 463-2050

    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.

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