海角大神

Skip to footer

Bankruptcy for TaxMasters, an IRS foe

Bankruptcy filing by TaxMasters puts focus on its aggressive ads. The Houston firm filed for bankruptcy after Texas' attorney general sued it for misleading advertising, .

|
Larry Downing/Reuters/File
Attorney General of Texas Greg Abbott, shown here in a 2005 file photo in Washington, has sued Houston firm TaxMasters for misleading ads. This week, TaxMasters filed for Chapter 11 bankruptcy.
  • By Associated Press

| HOUSTON

TaxMasters Inc. has filed for聽bankruptcy聽protection following a legal challenge from Texas prosecutors who say the company's famed TV commercials mislead potential customers.

The Houston-based tax resolution company filed Chapter 11 reorganization documents in federal court on Sunday.

The filing says TaxMasters has assets of less than $50,000 and estimated liabilities of $1 million to $10 million.

Company founder and president Patrick Cox fronts the company's national advertising campaign.

says Texas is suing TaxMasters for violating the Texas Deceptive Trade Practices Act. It says TaxMaster commercials encourage people to call for a free consultation with a tax specialist but the calls are answered by salespeople unqualified to provide tax advice.

A TaxMasters spokesman and attorney did not immediately respond to calls for comment Monday.

RELATED: Do you need tax software? Five questions to ask.

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
海角大神 was founded in 1908 to lift the standard of journalism and uplift humanity. We aim to 鈥渟peak the truth in love.鈥� Our goal is not to tell you what to think, but to give you the essential knowledge and understanding to come to your own intelligent conclusions. Join us in this mission by subscribing.
QR Code to Bankruptcy for TaxMasters, an IRS foe
Read this article in
/Business/Latest-News-Wires/2012/0319/Bankruptcy-for-TaxMasters-an-IRS-foe
QR Code to Subscription page
Start your subscription today
/subscribe