A few TV commercials really upset me. Topping the list are those for firms which promise to lessen your tax bill enabling you to pay pennies on the dollar. I make up those pennies you’re not paying, right?
With that in mind I was pleased to learn that TaxMaster’s has declared bankruptcy… and there’s more.
TaxMasters Inc., a Texas-based tax advisory firm perhaps best known for its ubiquitous advertisements on cable television, has been ordered to pay more than $195 million in penalties for defrauding its clients.
Patrick Cox, the firm’s heavyset, bearded founder and chief executive officer, has to pay $46 million of the judgment handed down last week by a Texas jury. Cox appeared in many of TaxMasters’ commercials.
TaxMasters was found to have committed more than 110,000 violations of Texas’ Deceptive Trade Practices Act, according to a statement released by Texas Attorney General Greg Abbott. – FoxBusiness.com
The essence of the charges against TaxMasters is TaxMasters was a total fraud.
As it turns out CNN, Fox News, MSNBC and a handful of other cable networks will be the ones getting pennies on the dollar, if they’re lucky. TaxMasters owes $2.6 million to CNN alone!