HOUSTON -- Houston-based TaxMasters Inc., known nationwide for its television commercials with tough-talking company founder and front man Patrick Cox, has filed for Chapter 11 bankruptcy protection.
In a three page document tendered to the U.S Bankruptcy Court for the Southern District of Texas Houston Division, the company which once spent millions annual on advertising, listed assets of less than $50,000. It also estimated liabilities between $1 million and $10 million.No surprise: the Texas Attorney-General's office is about to go to trial against TaxMasters for misleading customers. Some relatives of mine paid $5400 to TaxMasters who did worse than nothing: they told them to not contact IRS, because TaxMasters was handling it. They did nothing. They did not even contact IRS, who unsurprisingly, assumed that my relatives were ignoring the IRS (which is not a good thing to do).