Jay Freeborne

by Jay Freeborne, Enrolled Agent

With JK Harris' closure in the last month, allmost every tax resolution company with national name recognition has gone under. What did these companies have in common? Almost universally a reputation for poor customer service as reflected in F ratings at the Better Business Bureau. All of them had unwanted scrutiny from Attorney Generals around the country and in some cases: class action lawsuits. They all had a very good run due to extensive TV advertising. Their owners all had some very good years, though, and probably have some serious toys/assets to show for it.

Let me jog your memory:

Remember American Tax Relief's commercials? Closed down in 2010. Showdown by FTC

How about Roni Deutch? Closed in 2011 Attorney General Shuts Down Roni Deutch

JK Harris -- as I said. Filed Chapter 7 JK Harris closes

As far as big-time name recognition, who's left? Well just one: Taxmasters based in Houston, TX.

And I would NOT be surprised if Taxmasters joins those other guys in the Graveyard of Tax Resolution Companies. Why? Well they nearly have $20 million in debt -- Yahoo Finance -- TAXS.PK Their recent press releases -- Taxmaster to Issue Unregistered Sale of Shares and Taxmasters paying $50,000 to Company to Promote Stock can be interpreted as either...the sign of a company that is truly on the upswing OR a last act of desperation -- paying their creditor in shares instead of cash and trying to pump up their stock price one last time so they can sell HIGH?

Without sounding too cocky, I did allude to JK Harris' demise: JK Harris - Financial Issues? -- July 2011 Can Taxmaster overcome their F rating at the BBB and attorney general issues to grow their company and satisfy the stock market? We'll see!

Whatever happens to Taxmasters: popular culture will always be thankful for their contribution in TV advertisments. Saturday Night live did the best parody here: SNL spoofs Taxmasters

For 30 years, WATAX has been solving every kind of tax problem. Call us at 1-888-282-4697 or email us a description of your tax issue and we'll contact you.

Posted In
Registered members of the National Association of Enrolled Agents.

Call and talk with a tax expert for free:
(888) 282-4697

or email us now