Another One Bites The Dust. TaxMasters Files For Chapter 11 Bankruptcy.

Yet another company claiming to assist taxpayers with tax debt resolution files for Chapter 11 bankruptcy. From false claims of help to deceptive businesses practices, another national tax resolution company shows why it may best to go with a local tax professional.

Many national tax resolution companies advertise negotiation help in resolving clients’ debt problems. Many do the work they advertise, while many, such as TaxMasters, are catching heat due to claims that they are taking the money and refusing to do the work on behalf of a client.  TaxMasters has recently filed for chapter 11 bankruptcy which allows for reorganization of the business, assets, and debt.  In most cases the debtor is still in control of business practices.

One big problem with these national debt resolution firms is that they always say “YES.”  Yes, we can lower your debt. Yes, we will fix your tax problems.  The correct response to these questions is “Maybe.”  There is absolutely no guarantee that anyone can reduce or eliminate any tax debt or liabilities that a person or company has.  For this reason, the word “scam” is throw around. Is it always a scam? No, but many times it is. If it sounds too good to be true, it usually is.

There are other resources available to people or business with tax debt issues. Local Enrolled Agents are a great resource.  Generally speaking, they can charge lower rates than a national firm and have just as much, if not more, expertise than national companies that bank on flashy commercials.