Wednesday, May 23, 2018
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Tax Masters petitions for Chapter 11 protection

HOUSTON — TaxMasters Inc. has filed for Chapter 11 bankruptcy protection following a legal challenge from Texas prosecutors who say the company's TV commercials mislead potential customers.

The Houston-based company filed Sunday. Patrick Cox, the company's founder and president, is the company's national advertising spokesman.

Texas is suing TaxMasters for violating the Texas Deceptive Trade Practices Act. It says TaxMaster commercials encourage people to call for a free consultation with a tax specialist, but the calls are answered by salespeople who are unqualified to provide tax advice.

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