Houston-Based Taxmasters Inc. Files For Bankruptcy

TaxMasters Files for Bankruptcy

Houston-based Taxmasters Inc. files for bankruptcy.

The well-known and controversial tax advisory firm, TaxMasters Inc., filed for bankruptcy this morning, just as it was preparing to head to court to defend itself from charges of deceptive practices leveled by the Texas attorney general.

The Houston-based company, best known for a national advertising campaign that made company’s bearded, red-haired founder Patrick Cox a recognizable figure, was the subject of an ABC News investigation in April, in which customers had alleged that the company persuaded them to pay large upfront fees, but never delivered on promises of helping them resolve their tax problems. The commercials boast that the company’s staff of former IRS agents and tax professionals “have helped many good people just like you.”