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Sent to a friend[7938] TaxMasters; Patrick COx; Houston Texas - Tax scams; Bait and Switch
I hired Taxmasters to help deal with a minor tax issue. During the initial consult, they told me one thing. After taking my money (it was A LARGE sum of money, many thousands of dollars), their story changed completely. When confronted about the changes, Taxmasters associates began to lie. The first obvious lie came a couple days after the initial phone consult. I found out later that I was lied to during my initial phone consultation as well.After the first couple lies, I realized that I had been victimized by what is commonly known as the old 'bait and switch', wherein you are told one thing to get you to part with your money, and then you are told something else once they have your money. I terminated the contract within days of the initial phone consult, which set into motion many weeks of ordeal, in which Taxmasters fabricated outrageous, defamatory lies about me, in attempts to keep my money, amongst other tactics.
During my ordeal, here are a few things I have noted:
- Taxmasters associates APPEAR to operate from a script; a process designed to ensure that, no matter what, Taxmasters prevails. Examples: Taxmasters might make every attempt to get your payment BEFORE giving you a contract for review. Next, they might only speak in general terms, avoiding specifics of your finances during the initial phone consult, and later might claim that you withheld information from them; information which they did not ask for. Next, Taxmasters appears to have an orchestrated 'third-party review' process (which does not appear to me to be a REAL third-party, meaning a non-Taxmasters employee) to verify your INTENT to pay, which they then later use against you, should you attempt dispute the charges. There are many more indicators I could list, which appear to support the theory that Taxmasters associates operate in a scripted, coordinated, and/or orchestrated fashion.
- Taxmasters associates seem to prefer to do business via telephone, where there are NO RECORDS of what is said. Taxmasters might then attempt to use this AGAINST you, should you end up in a dispute. Shortly after I had terminated phone call access, Taxmasters became unresponsive to direct emails sent to them. Why? Because emails generate a paper-trail; evidence which could be used against Taxmasters in any dispute.
- Taxmasters contract contains many clauses which favor ONLY Taxmasters. One example, there is an 'abuse' clause which allows Taxmasters to terminate the contract and keep the funds, should Taxmasters decide to utilize it. Taxmasters COULD claim that you were abusive in a phone call, which of course is subjective because the call is not recorded, and abuse could be quantified as just about ANYTHING, including things which may not have even transpired, since phone calls are not recorded; another good reason to cease telephone contact immediately and insist all communications be in writing.
- Demagoguery is truly the 'last bastion of a scoundrel'. People who resort to this type of rhetoric generally do so because they are on the wrong side on an argument. Taxmasters appears to utilize demagoguery, to distract from the REAL ISSUES at hand. If Taxmasters can create a 'straw man', an argument about your character or some other such nonsense which has no basis in fact but is highly prejudicial, they can at best case hope to prejudice objective mediators and others who might take interest in a case, and in worst case, distract them. That is, after all, the purpose of demagoguery.
- Taxmasters, over a period of years, has developed quite a history, which explains itself and needs no characterization from me. Go the the BBB website (google 'BBB'), and research Taxmasters of Houston. I suggest you review the RATING and rating justification in detail, currently listed as 'unsatisfactory'. In addition, review the 'detailed view' of the Consumer Complaint History', which will show you statistics for the last 3 years. Pay particular attention to the last 12 months, and the differences between the last 12 months, and the 24 months that preceded them. Also, compare the BBB rating justification to the posts contained here on ripoffreportdotcom. You might see striking similarities. Use all of this data in any dispute you might have with Taxmasters. More data can be found through a 'google' search on Taxmasters, and the names of the prinicpals, Patrick Cox, Alex Clamon and Fred Hackett. An amusing side note, the Taxmasters website has a 'D&B Listed' logo on it; an official looking bit of fluff. Why is this there? What does it have to do with Taxmasters representing clients to the IRS? With the quality of Taxmasters as a service business? Nothing. 'Dun and Bradstreet' ratings are FINANCIAL ratings (like for investors), not quality of service ratings as issued by the BBB. Yet, it DOES look official on their website, doesn't it? D&B... BBB... see any similarities? I guess with 143 BBB complaints in the last 12 months at last count, it wouldn't pay to have a BBB link on the Taxmasters site, now would it? Taxmasters is not a BBB Accredited Business, according to the BBB website.
In the end, I prevailed. I had all of my funds returned to me (not by Taxmasters, who in their last communication still maintained a right to it).
Based on my own personal knowledge, from dealing with Taxmasters, I would not recommend Taxmasters to my worst enemy. If you are considering whether to hire Taxmasters, I suggest you give great weight to the BBB report, and to the reports of consumers here at ripoffreport. Also, I suggest you contact the Harris County District Attorney's Office, and speak to someone in their Consumer Fraud division, to get more knowledge. Knowledge IS power.
If you already find yourself in a dispute with Taxmasters, while I cannot resolve your issue for you, here are a few friendly words (not to be taken as legal advice; consult an attorney for that):
- You might want to cut off ALL telephone communications IMMEDIATELY with Taxmasters. Written communications forces honesty, and documents lies. If you wish to cut off telehone communications, do this in writing. Send copies of the notification via email, certified mail AND fax, to ensure delivery (save delivery confirmations on file). Insist that all future communications be in writing. This will force Taxmasters to take positions, and to make statements which YOU can then use against THEM.
- Start a journal. Document each and every event (no matter how insignificant it might seem at the time) related remotely to your dispute, by date and time. Your journal can be used as evidence. Use it faithfully.
- Open a file, and keep every scrap of paper you write or receive. Also, keep copies of whatever you find on the internet. Use all of this data as references in your dispute, and make copies to send to all the different agencies (your bank, the BBB, etc.). When you receive an email, letter or other document, annotate it with the date and time received before filing it. SAVE THE ENVELOPES! They have datestamps on them. Compare the datestamps on the envelopes you receive, to the letters inside of the envelopes, to see if letters have been pre-dated in efforts to make it appear as if they were written long ago. When you respond to communications, place a copy of your response, annotated with the date, time, and method(s) sent, into your file.
- Time is critical. Do not delay in filing your disputes. Delays can and probably will be portrayed as YOUR FAULT; evidence that you approved of the direction and work of Taxmasters. Once you have reviewed your options in detail, decide which direction to go, and go there full speed ahead.
- Be VERY CLEAR in your demands. Ambiguity will probably be used against you. If you wish Taxmasters to cease doing something, be specific and tell them to cease and desist.
- Power of Attorney MUST be revoked in writing, should you desire to limit Taxmasters ability to continue working on your case, in contravention of your stated demands to not work. If you have previously granted them Power of Attorney, and if you wish them to stop working on your case as a result of your dispute, send them a notice revoking their Power of Attorney effective immediately, and send it via email, registered mail and fax keeping confirmations from all on file (send ALL documents or communications to Taxmasters in this manner).
- File complaints with each and every agency that you can file with. Send them a full written statement, and copies of all of your collected documents on file, and reference these documents in your statement, if you are able to. Maybe write up one detailed statement with all the attachments, that you can send to each agency that you file a complaint with. Tell the whole story, from start to end. Be accurate. Be detailed. Be truthful. Be complete. Explain in detail how this has affected you personally. If you paid by credit card, file a complaint with your bank (dispute the charge). It is important to file with your bank QUICKLY. File complaints with the Harris County District Attorney and the Texas State Attorney General (contact information can be found online, and even some of the forms). File a BBB complaint online, or via phone if need be. Online is better. File a complaint at ripoffreportdotcom, to help other consumers who might have comparable issues. Try the US Attonrey General's office as well, since Taxmasters IS conducting their business across state lines. Also, if you are doing business with Taxmasters through the US Mail, you can also file complaints with the US Postal Service Postmaster General.
- Be professional in ALL communications. Sarcasm is okay at times, and does serve to make points occasionally. Don't get angry however, and make statements which might hurt you later.
- Carbon-copy (cc:) all of your responses to Taxmasters to every agency that you have filed complaints with, by listing them next to 'cc:' at the bottom of your email or letter. Let these people know that you are forwarding all of this to the appropriate agencies. Periodically or as need requires, send out the copies to the agencies.
- Don't give up the fight. SOME companies make their money off of quantity versus quality. The more people who get discouraged and quit, the more profit is realized. SOME businesses understand this, and take this into account in their business plan
; they expect to lose a few accounts, and are willing to do so in order to win in the cases that people just give up fighting. If you give up, they immediately profit. In other words, SOME companies will do no work, yet keep the money paid. It is pure profit, since they do not have to pay labor or overhead to deal with your case.
Freedomfighter
San Diego, California
U.S.A.
UPDATE:
After shortly after winning this dispute, I found out just how far people will go to get revenge.
With a month of winning and before I could hire new honest representation, the state seized assets. No biggie. I was attempting to pay it off anyway. I just needed representation to help me. Yet, it does illustrate the negative impacts one innocent phonecall can result in to a company that you think is honest.
I called the IRS myself. They were very nice and quite helpful. They clarified the truth for me, and proved to me that much of what I had been told by Taxmasters were just not true, including (but not limited to) the claim that you must file every year regardless of whether your income falls below the requirements. This is complete tripe. It is a scam to get you to agree to unnecessary work, for big money. I argued this point during my phonecalls to Taxmasters and I was right about it, just as I was right about the other issues.
Call the IRS on your own. You will find out exactly what I did. They will help you willingly to deal with the problems, free of charge, without deceitful practices, or demands for ridiculous fees. believe me, you will save yourself alot of money, many headaches, possible bad reports to TRW, and a host of other things that you don't need!
UPDATE:
Watch the national television ad for TaxMasters, being run on MSNBC and FOX. Read and listen to it carefully. You will see text from a supposed 'happy TaxMasters customer' named Greg.
The text of Greg's subjective comments state that he owed 'NOTHING', after TaxMasters intervened on his behalf. 'NOTHING' is written is large, capitalized font, in a different color than all the other text in order to stand out and catch the eye of the viewer. While this text is being displayed, you will hear Patrick Cox of TaxMasters paraphrasing Greg's subjective letter, stating that Greg owed 'no additional taxes'. 'No additional taxes'. That's right, folks. 'No additional taxes'. This means that Greg, the supposed happy TaxMasters customer, owed 'no additional taxes' from what he already owed. No kidding.
This is another example of the TaxMssters 'bait and switch' scam, with carefully coordinated differences between the spoken text and writen text in order to provide TaxMasters a defense. They bait you with 'NOTHING!!!', and once you sign up, it switches to 'no additional'. This happened to me. Prior to payment, I asked worse case what the total cost to me, including taxes and TaxMasters fees would be. I was told, worst case, the total amount would be only the TaxMasters fee; that Taxmasters would ensure that I would pay 'nothing' as far as the tax balance. After receipt of payment, TaxMasters story changed completely.
Advertisements such as this are not made on the spur of the moment, containing off-the-cuff remarks. They are carefully constructed to serve a purpose: to get as many clients as possible, limit TaxMasters' exposure to lawsuit, and provide defense to claims.
Beware of Greeks bearing gifts.
Posted 1 year ago
Rating:1.00
Comments
- Thank you for posting. I too have disputing Tax Masters and have filed a report with the Houston BBB. But since the BBB can't do anything, I filed a report with the FTC Consumer Complaints, the TX States Attorney and other places as well.
I cancelled with Tax Masters in less then 24 hours sending a cancelation letter via email. When the fax department called to verify they received my fax, I told them to rip it up I am canceling. Tax Masters continues to say they have a signed contract, even though the fax department was told and said they would tear my fax up. The billing department tells me that, It is the law that anything ordered over the phone not be refunded and that Tax Masters has a no cancelation policy.
Posted 1 year agoReport - Hi. Sorry to hear that you too got screwed by TaxMasters. Don't believe criminals citing law. They are full of s---. Period. They will tell you anything, to get you to delay dealing with the fraud, so that they can then use the delay against you. Criminals use bully tactics to get their way. If in fact you DID cancel your contract within 24 hours, you probably ARE entitled to a full and complete refund, especially if you have refused receipt of services or product.
The Merchant Bank Dispute process works. But, it has to be filed immediately for it to work. Any delays in using this dispute process will benefit the fat man at TaxMasters.
Posted 1 year agoReport - Hi. Sorry to hear that you too got screwed by TaxMasters. Don't believe criminals citing law. They are full of s---. Period. They will tell you anything, to get you to delay dealing with the fraud, so that they can then use the delay against you. Criminals use bully tactics to get their way. If in fact you DID cancel your contract within 24 hours, you probably ARE entitled to a full and complete refund, especially if you have refused receipt of services or product.
The Merchant Bank Dispute process works. But, it has to be filed immediately for it to work. Any delays in using this dispute process will benefit the fat man at TaxMasters.
Posted 1 year agoReport - Hey everyone!
Ben Scammed started a TaxMasters complaint resource located at:
http://actionagainsttaxmasters.ning.com
Go there and sign up!
Posted 1 year agoReport - Hello, I'm so fed up with Tax Masterbaters, I am filing a form 2848 with the IRS today revoking my power of atty with them. They have screwed me on every level. I swear to you I have aged 10 yrs this past 2 yrs of my life dealing with them!!! They took my money ($3750) and submitted this rediculous offer to the IRS. Naturally it was not accepted and soon after I received a letter from Tax Masters saying that there is nothing more they can do for me and that my account is now closed!!! Bastards!!
Posted 1 year agoReport - Below is/was TaxMasters refund policy, as stated by Alex Clamon (VP of TaxMasters). I used this quote in my dispute against TaxMasters. After I successfully disputed their claims using this quote, the page containing this quote was taken down. Apparently, according to numerous websites, TaxMasters has been actively pursuing owners of websites which might portray TaxMasters in a negative light. I have seen many sites come down in the last 6 months.
Alex Clamon, posted on 29Dec2007 at 3:31pm:
"My staff and I have responded to each and every contact we have received. I am not interested in airing a client or a prospects dirty laundry about their IRS problems on the internet. However if someone chooses tto lie in this venue I will publish the recorded portion of the phone conversation where they agreed to pay the fee. I did not receive emails mentioned here by "Chris".
In response to Dale - I did get an email dated the 23rd. I did respond to it. Dale acknowledged that response and I have acted as promised, despite his slander. I did not get an email on the 13th. This refund request is slated for a review board meeting early next week. This has all been communicated separately. I would not normally make even the nature of any communications with a client public, but I did not choose this forum, and for his own reasons Dale has chosen not to be a client.
I would like to elaborate on what exactly our refund policy is at this time. First it is spelled out clearly in our contract and that always prevails. We do observe a 3 day rescission rule. That means if someone decides to cancel for any reason within the first 3 days of hiring us, we issue a refund. It might not happen that day, but it will happen. No one requires this of us. It is of our choosing.
Where we have already done the work, this would not be the case. This is the nature of our business, that our clients are in crisis, and sometimes the work has to proceed immediately. When you owe the IRS money, people with Badges and Guns are likely to become involved. In some cases, our clients are even being investigated for serious criminal matters. A small percentage of our customer base intends for us to do the work and to not pay us, or the IRS. We cannot tell who this client is upfront. This requires us to be paid prior to completing the work.
In all cases we make absolutely sure someone intends to hire us including using a third party to verify the transaction. All that being said we still have a self imposed 3 day rescission. This is my commitment to being completely sure that no one takes advantage of the great trust that our client places in us.
Best Regards,
Alex Clamon, VP
TaxMasters
alex.clamon@txmstr.com "
Posted 1 year agoReport - To "fed up with Tax Masterbators"
Wow. Sorry to hear of your problem. You should contact Ben Scammed at
http://actionagainsttaxmasters.ning.com
and sign up. A class action suit is being organized, hopefully.
Posted 11 months agoReport - If they claim they issue refunds, why do they have over 600 complaints, are not accredited with, and have an F rating with the BBB? They actually have a stock listing on the pink sheets and the stock sells for about 70 cents and last time i looked the PE was 800, meaning the Price is 800 times earning. A reputable stock on the NYSE might sell for 12 times earnings. Meaning it will take 12 years for the earnings to equal the price, and Taxmasters is at 800. I've written to Fox and Dennis Miller to drop them as a sponsor to no avail. Please email every person you know, call it Tea Partiers against TaxMasters.
Posted 4 months agoReport - If they claim they issue refunds, why do they have over 600 complaints, are not accredited with, and have an F rating with the BBB? They actually have a stock listing on the pink sheets and the stock sells for about 70 cents and last time i looked the PE was 800, meaning the Price is 800 times earning. A reputable stock on the NYSE might sell for 12 times earnings. Meaning it will take 12 years for the earnings to equal the price, and Taxmasters is at 800. I've written to Fox and Dennis Miller to drop them as a sponsor to no avail. Please email every person you know, call it Tea Partiers against TaxMasters.
Posted 4 months agoReport - If they claim they issue refunds, why do they have over 600 complaints, are not accredited with, and have an F rating with the BBB? They actually have a stock listing on the pink sheets and the stock sells for about 70 cents and last time i looked the PE was 800, meaning the Price is 800 times earning. A reputable stock on the NYSE might sell for 12 times earnings. Meaning it will take 12 years for the earnings to equal the price, and Taxmasters is at 800. I've written to Fox and Dennis Miller to drop them as a sponsor to no avail. Please email every person you know, call it Tea Partiers against TaxMasters.
Posted 4 months agoReport
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