Big Tax Resolution Companies Almost Always Close or Get Shutdown: Who’s Next?

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