Statement From Tax Masters Founder Patrick Cox

April 14, 2011 — -- We take exception to Mr. Lee's allegations as they are false. Any complaints Mr. Lee say existed were within his power to fix.

Lloyd Lee was hired in November 2008 for the specific purpose of ensuring our clients' tax returns were prepared in timely manner. Mr. Lee was underperforming and starting in August 2009, TaxMasters began counseling, coaching and remediation. After less than a year, Mr. Lee had not improved to an acceptable level and was formally reprimanded in February 2010 for not meeting the goals he had agreed to in accepting the position. Lloyd Lee was then terminated in March 2010 for nonperformance. The current tax director has been successful in ensuring that new client tax returns are prepared timely.

Lloyd Lee now co-owns a competing business with other ex-TaxMasters employees who were fired for conflict of interest when it was discovered they were working for the competing firm while still under employ with TaxMasters.

TaxMasters has more than 300 dedicated hardworking employees who have served more than 50,000 clients over the years. The fact remains that while the process may take time, the taxpayers we work for who are upfront and honest with us about their tax problems and work with us through the compliance and settlement process are very likely to resolve their IRS tax problems at a very reasonable cost for professional services they need.

While we are successful at returning our clients to compliance and representing them in their IRS problems, we – like any other company – are constantly striving to improve as we continue to grow. It's what we have learned from this growth process that makes us a highly successful IRS tax representation firm. At TaxMasters, that means evaluating how our sales team interacts with potential clients, creating a new business model that allows clients more flexibility in their contract and guaranteeing our negotiated-settlement clients that if we do not settle their debt with the IRS, they are not charged for that service.

It is not surprising that ABC News dug through the tens of thousands of taxpayers we have spoken with over the years and found a few individuals willing to complain on camera, at least one of whom was an ex-employee terminated for non-performance. While we will not comment on former clients who may still be in tax trouble and vulnerable to an IRS investigation, the fact remains that these complaints are not a fair representation of TaxMasters' client base or business practice, which prides itself on honest customer service, a transparent process with our customer, and seeking fair treatment from the IRS.

- Patrick Cox, CEO TaxMasters Inc.