You probably know of TaxMasters. The company was constantly on the television advertising for tax settlement services. I remember one commercial where the advertisement had many testimonials claiming, “TaxMasters settled my ten million dollar debt for three cents.” Of course that is an exaggeration, but you know the type of commercials I am talking about.
Well, as of this week, CNN Money is reporting here that TaxMasters has filed for bankruptcy. At first I was astonished that a company that could work the miracles described above would have to file bankruptcy. Then I read the article and found out that TaxMasters was being sued for deceptive practices and making claims that it could not substantiate by the Attorney General. Then this bankruptcy made sense.
While I am sure TaxMasters did assist many people with settling their tax debts to some degree or another, I think this is an excellent cautionary tale about being careful with services that sound too good to be true. When you are dealing with services of someone of this kind, you should look into the company in depth and determine if that company is comprised of people that you believe will deal fairly and honestly with you.