I have fell victim to Tax Masters scam like many people have. I put a complaint into the Better Business Bureau and a list of other agencies. I wanted to share with other individuals what I have received in response from Tax Masters to the complaint I have filed with the BBB.
My initial complaint to the BBB:
Complaint Involves:
Service Issues
Customers Statement of the Problem:
My husband contacted TaxMasters back in October to provide legal council for a tax issue my husband and I have with the IRS. They guaranteed that if we paid them $8,500 they could stop all penalties and interest and come up with some sort of agreement with the IRS. So we gave them a down payment of $2,000 with 4 monthly installment of $1,625. So we went ahead and got them all the necessary paperwork they requested and faxed it over and we spoke with them again in November and they said that from that point forward all penalties and interest would stop and then we can start working on a offer in compromise with the IRS. Well we never heard anymore from them and in December we received a letter again from the IRS stating they were going to levy our wages and more penalties and interest accumulated from the time we talked to TaxMasters so that to me shows that they did nothing to stop the penalties & interest like they said. My husband then contacted them and they said we had to fill out more paperwork and get it right over to them, so we did what they asked and now we cannot get a hold of them to find out what is going on. We are being told that their system is down and they are not responding back to e-mails. They have taken us for $3,625 so far and I am afraid that we are going to be out that money and have to pay another attorney a large sum for what they should have done already. I am a small business owner and if the IRS ceases my bank accounts it will cripple my employees, my family & myself. What I have paid TaxMasters so far I could have paid to the IRS to clean up some of my tax debt. I have read some of the complaints people have put in about them and I wish I would have looked them up first but I didn't realize that a large law firm could legally screw people out of money. They need to be stopped and repay what they took!
Desired Settlement:
I would like to get the monies I have already given to them minus the $750 consultation fee. That would leave a refund amount of $2,875, I than can consult with another tax attorney to help me with my tax issues and who will actually do their job and do what they say they are going to do.
Note: I did not realize at the time of submitting this complaint to the BBB that Tax Masters was not a law firm... I did correct myself of thinking that.
Tax Masters response to my complaint to the BBB:
Dear Mrs. Xxxxxxxx:
It is extremely unfortunate that your experience with TaxMasters did not meet your expectations; and you chose to cancel your services. Our Quality Assurance Department has investigated your complaint.
You engaged TaxMasters in a binding verbal contract to perform services on your behalf with the IRS and TaxMasters has also divulged information to you as a client in regards to how we plan to handle your specific problem. This information is proprietary, and there are certain costs associated with this information.
You have requested that we void the verbal contract which is a legal binding agreement with Tax Masters which states that all fees are non-refundable. We are unable to do this. Although we cannot give you your money back, we can insure that you receive satisfactory service from our company.
TaxMasters stands by willing and able to perform the services you asked us to do perform for you. Please feel free to contact the Quality Assurance team for assistance. We can be reached at 281-497-4226 ext. 1250. We look forward to working with in an attempt to resolve your problem. Your IRS problem is serious and could get worse if not acted upon in a timely manner.
Sincerely,
E. Dewayne Logan
Quality Assurance Vice President
EDL / lr
My response back to Tax Masters:
In response to Mr. E. Dwayne Logan's reply about the verbal binding contract Tax Masters did not hold up to their end of the agreement. We were told that all penalties and interest would stop and to date they are still accumulating. Also, we were told that they would be in contact with the IRS and we have spoken to the IRS and they have not been in contact with them! We were mislead on many levels and to me that calls for voiding the so called verbal agreement!
I am also confused on the statement of how they divulged information to us and that information is proprietary, what information may that be that we didn't already know. I would also like to know what the certain costs are that is associated with that information since nothing has been done to date. I have put out $3,625 and I am no further along in resolving my tax issues then when we first were in contact with Tax Masters in November. I cannot financially or mentally afford to wait months on end only to have the IRS levy my wages because Tax Masters inability to handle my specific problem. It has been a huge waste of time and money not to mention the stress it has caused.
I am still looking to be refunded my monies of $3,625 minus the consultation fee of $750 that comes to a total of $2,875, unless they can prove to me that up until this point they have done $2,875 in service I will stand my ground! And in no way shape or form will I continue on with Tax Masters with my "specific problem" I wouldn't suggest them to my worst enemy!
Regards,
Tax Masters response back to me:
Ms. Xxxxxxxx,
Hearing bad things on the internet regarding TaxMasters is not a valid reason for a refund.
TaxMasters remains actively engaged in providing you the services that you contracted with us to provide and will continue to perform work on your file to the best of our ability, provided we have received adequate information, documentation, and permission.
Sincerely,
E Dewayne Logan
EDL/dmr
My response back to Tax Masters:
Mr. E Dewayne Logan-
I realize hearing bad things on the internet does not warrant a refund but it does show how inadequate and incapable Tax Masters is at performing their services they say they can do, and my husband and I unfortunately fell victim to this! We were taken advantage of for a substantial amount of money and I want my money refunded back to me!
We did everything we were asked of from Tax Masters in the beginning and then it seems once they started receiving money from us everything Tax Masters said they would do came to a complete stop. I am not going to pay a substantial amount of money to Tax Masters for them to take their sweet old time, I am the customer and I am paying for a service and I want results of the services that was guaranteed to us! I understand some things take time but when you hear nothing and when you call to talk to somebody about it and you get transferred to different people who have no idea what is going on it tends to get a little frustrating. SO the question is what the heck were we going to pay $8,500 for?
I no longer want Tax Masters actively engaged or performing so called work on my file, I have faxed my cancellation letter along with Revocation of Power of Attorney documents to Tax Masters on 1/19/10.in other words Tax Masters is fired, any agreements should be null and void for services that Tax Masters said they would perform not being met.
I am also STILL seeking a refund of $2,875 and if Tax Masters still does not agree to refund said money I want written proof that they did anything on our file up until 1/19/10. The only thing that we have seen from Tax Masters is a consultation letter stating that we owe the IRS money which we already knew that and we also faxed over the IRS document stating that. So I agree to pay a hefty $750 for the consultation fee for Tax Masters to tell me that and that is it. So if you equate it out we have paid $3,625 minus the $750 it comes to a refund amount of $2,875. I stand my ground and will continue to until I receive my refund!
Regards,
After reading many complaints I realize I am stretching here on getting a refund, but I will not back down because that is what they want you to do. Anyone who has been scammed by this Company needs to fight and be heard, we can't let them get by with this and also other people need to be warned before they get sucked into the "Verbal Agreement".
I also put a complaint in with the Department of the Treasury and I received a letter today from them stating they are going to review my complaint and evaluate it for appropriate action. I am not sure if it will go anywhere but it sure is worth a shot and if more people complain to them maybe action will be taken. Following is the information to voice a complaint with them:
Treasury Inspector General for Tax Administration Hotline PO Box 589 Ben Franklin Station Washington, DC 20044-0589
Email: Complaints@TIGTA. Treas. Gov
Telephone hotline: 1-800-366-4484 Fax: 202-927-7018
I also put complaints in with the following agencies:
Texas Board of Public Accountants (Patrick Cox the CEO of Tax Masters is a licensed accountant) their email is 'enforcement@tsbpa. State. Tx.Us'
The Federal Trade Commission their website is www.ftccomplaintassistant. Gov
Texas Attorney General and their website is www.oag. State. Tx.Us/consumer/complain
I will also be contacting my state Senator & the news media. If there is anyone else I am leaving out please let me know. We need to expose these guys for what they really are... Crooks!
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