TaxMasters Accused of Fraud and Deception

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TaxMasters Accused of Fraud and Deception - ABC News

"Despite accusations in two states of deceptive business practices, the Houston-based tax resolution company TaxMasters continues to spend millions saturating CNN, Fox News and other cable channels with commercials promising to help Americans facing problems with the IRS.

"This is a company which is taking advantage of people, and unfortunately when people see it on TV, they do believe in it," said Minnesota Attorney General Lori Swanson, who has accused the company of fraud and deception in a civil action.

The Texas attorney general has filed a similar lawsuit, alleging the company unlawfully "engaged in false, misleading, and deceptive acts and practices."

An investigation airing tonight on World News with Diane Sawyer and Nightline will examine whether TaxMasters' promises are too good to be true.

In a statement, CNN said the network was "aware of pending legal activity" and had been told by TaxMasters that it was working to address the claims with the state authorities. "We continue to monitor any activity for developments or resolution, and will further evaluate our relationship as it becomes necessary," the network said in the statement."
 
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