StockGuru Blog: TaxMasters, Inc. (OTCBB: TAXS) National Prominence AND National Dominance
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StockGuru Blog: TaxMasters, Inc. (OTCBB: TAXS)
TaxMasters, Inc. (OTCBB: TAXS)
TaxMasters, Inc. (OTCBB: TAXS) National Prominence AND National Dominance
Dear Members,
TaxMasters, Inc. – comes to the aid of taxpayers. There is no national household name in this arena, YET. But TaxMasters is making a strong run at becoming the household name for taxpayer aid.
United States Citizens have not historically known where to turn. If you watch television — now you know. It is hard to miss their commercials. TaxMasters makes their case clearly and concisely on national television day after day.
There is unlimited opportunity for the IRS to challenge taxpayers and when this happens, now the first name to come to mind will be TaxMasters. This past month Senator Charles E. Grassley, R-Iowa, formally not his Floor Statement delivered Nov. 18, 2009, “one independent report after another highlights IRS’ enforcement problems …today, the Administration reports that waste of taxpayer dollars from improper Tax Credit payments including the Earned Income Tax Credit, Health Coverage Tax Credit, and Making Work Pay Credit. These payments increased from $72 billion in 2008 to $98 billion in 2009. And, over $12 BILLION – almost 12% – of the $98 BILLION in improper payments was because of the Earned Income Tax Credit.”
“A TIGTA report from November 2009 on the Health Coverage Tax Credit, reviewed a valid sample of individuals who claimed this credit on their 2006 Federal tax returns. TIGTA found that 72 percent did not have the required documentation attached. In addition, TIGTA states that IRS does not effectively identify and prevent individuals from erroneously claiming the health credit on their Federal tax return. TIGTA identified over twelve hundred individuals who appeared to have wrongly claimed $1.8 million of these credits on their Federal tax returns.”
The Internal Revenue Service creates the opportunity and TaxMasters has demonstrated it CAN DO THE JOB.
Once the extensive advertising brings the client in the door TaxMasters has complete service and representation:
The six major services rendered by the Company:
Consultations
Tax Returns
Automated Collection Service (ACS)
Revenue Officer Case (ROC)
Collection Due Process (CDP)
Settlement Analysis
The Company’s recent revenue is undeniable proof that not only is there a need but that TaxMasters can deliver the services.
The Company’s revenue is generated from the sale of their proprietary tax resolution products and services.
Revenue Soars
Revenues for the three months ended September 30, 2009 increased by $236,759, or 3.0%, from $7,975,655 for the three months end September 30, 2008 to $8,212,414 for the same period in 2009. This increase in sales was due to increased sales volume attributable to an increase in advertising expense.
Revenues for the nine months ended September 30, 2009 increased by approximately $12,584,782, or 87.5%, from approximately $14,385,985 for the nine months end September 30, 2008 to approximately $26,970,767 for the same period in 2009. This increase in sales was due to increased sales volume attributable to an increase in advertising expense.
This is a serious company making a serious run at national prominence. TaxMasters, Inc. has the real opportunity to dominate this industry.
Thank you,
John Pentony
Publisher, StockGuru.com
Our Profile for TaxMasters, Inc.:
TaxMasters, Inc. (OTCBB: TAXS)
TaxMasters is an established tax resolution firm that provides tax relief to clients by assisting taxpayers with matters at the Internal Revenue Service (“IRS”), especially the resolution of disputes and assessments and the settlement of tax liabilities.
The firm consists of experienced tax professionals that help clients solve Federal tax problems, ranging from filing delinquent tax returns to settling tax debts. These tax professionals are experienced in analyzing and providing solutions to even the most complicated tax problems and guiding clients through the bureaucracy of the IRS.
Tax professionals include:
Tax Attorneys
Certified Public Accountants
Former IRS agents
Licensed Tax Preparers
Other tax professionals authorized to practice before the IRS
There is an estimated $184B in uncollected federal income tax. TaxMasters targets potential clients through the media supported by an effective internet site. In its June 2007 report, Tax Debt Collection the GAO states that the total unpaid tax debt as of fiscal year 2007 was $290.1 billion.
Revenue Sources
The Company’s revenue is generated from the sale of their proprietary tax resolution products and services.
Six major services rendered by the Company:
Consultations
Tax Returns
Automated Collection Service
Revenue Officer Case
Collection Due Process
Settlement Analysis
Revenue Soars
Revenues of $8,212,414 for the three months ended September 30, 2009, represented an increase of $236,759, or 3.0%, from $7,975,655 for the three months end September 30, 2008. This increase in sales was due to increased sales volume attributable to an increase in advertising expense.
Revenues of $26,970,767 for the nine months ended September 30, 2009, increased by approximately $12,584,782, or 87.5%, from approximately $14,385,985 for the nine months end September 30, 2008. This increase in sales was due to increased sales volume attributable to an increase in advertising expense.
Net income for the three month period ended September 30, 2009, was approximately $1,635,335 as compared to net income of approximately $2,494,519 for the three months period ended September 30, 2008, a decrease of approximately $859,184, or 34.4%.
Net income was up 441.8% for the nine months period ended September 30, 2009, and was approximately $6,165,505 as compared to net income of approximately $1,137,875 for the nine months period ended September 30, 2008, an increase of approximately $5,027,630.
chart here
Tax Masters Advertising – Growth Strategy
Tax Masters current ads appear on multiple cable networks including Fox News, Headline News, CNN, the History Channel, and various others. It is difficult NOT to see their ads. The IRS tax relief company began running television advertising locally in the Houston market in 2002. By 2004, the company expanded advertising and took the commercials national by 2006.
Potential Clients Present in Exponentially Expanding Numbers
One out of every five taxpayers in the United States has been claimed to have some tax problem. TaxMasters estimates that only 15 percent of those realize that companies like TaxMasters can help them solve their particular tax problem. The TaxMasters advertising strategy is to incrementally increase message visibility to the taxpayers who need help resolving their tax problems.
The number of taxpayers in need of these services has increased significantly with the downturn in the economy. Getting TaxMaster’s the message repeatedly is the key to generating new clients.
Economic Environment Rocket Fuel for Growth
The poor economic climate and increasing job loss trends that have carried through most of 2009 will likely affect many taxpayers’ ability to pay their taxes in full. TaxMasters, Inc. is at the right place at the right time to help a growing number of clients resolve their tax problems with the IRS.
A surge in sales that began for the IRS tax relief industry in October builds through April.
TaxMasters reported sales for the first six months in 2009 of $18,758,000, an increase of $12,348,000 or 193 percent, over 2008 sales for the same period of $6,410,000. The company used this growth data along with historical data to plan for the expected 4Q increase in sales.
Strong Internet Presence
TaxMasters is able to drive internet interest with their media campaign. There straightforward web site provides a tax client with as much or as little information as they want. The simple signup box retains a potential client’s information and they are contacted immediately.
TaxMasters — We Solve Your Problems http:taxmstr.com
Established Media Relationships
TaxMasters has developed a direct media campaign with strategic and sophisticated media relationships with various radio personalities over the years.
TaxMasters manages growth intentionally, hiring teams and additional talent in coordination with increases in advertising.
In addition to the extensive media advertising you can hear TaxMasters being discussed on:
Talking Points with Bill O’Reilly
Fred Thompson Show
Dennis Miller Show
Osgood Files
Laurie Roth Show
You can also see the television spots for TaxMasters on various cable channels and on the TaxMasters web site at www.txmstr.com.
Tax Masters Growth
Employees:
In 2006, the company employed 15 people
in 2007, the company employed 101 people
By the start of 2009, the company employed 210 employees and hiring continued throughout the year
In early 2010, TaxMasters expects to have almost 300 employees on staff
Effective Growth Management
The company carries relatively little debt and has posted impressive revenue gains in the recent past.
In 2007, the company reported total revenues of $6.5M.
For 2008, revenues grew by 132 percent to $15.1M.
The growth has continued, with sales from the first six months in 2009 of $18.7M representing an increase of 193 percent over 2008 sales for the same period of $6.4M.
The 4Q plans at TaxMasters include moving into larger office space to accommodate an expected growth in personnel, delivering a review of the company's processes and procedures with efficiency recommendations, rolling out proprietary workflow control software to streamline production, and increasing advertising to grow sales.
These plans are rooted in TaxMasters' commitment to manage growth successfully while increasing sales on a consistent, predictable path.
Streamline Productivity
Initially aimed at increasing productivity, P3 provided a formal process flow for every area of the Company, which is the basis of a new proprietary control and workflow management software application currently undergoing operational testing. Both P3 and the new workflow management application are direct results of TaxMasters' commitment to manage growth and reduce costs. Squeezing out inefficiencies and improving customer service remain at the heart of the company's efforts to grow gracefully while experiencing what it calls a fourth quarter surge.
TaxMasters employs a system known as: P3, which catalogs and analyzes the Company's internal Processes, Procedures, and Policies (P3) in an effort to identify and target opportunities to increase efficiency. The P3 Report was finalized in April and consists of a comprehensive assessment including efficiency recommendations linked to objective standards and measurable criteria. After experimental implementation of the recommended changes in early Q2, TaxMasters has seen steady improvements in workflow, speed of service, and customer service management throughout Q2 and Q3.
Hands On All Encompassing Client Service
TaxMasters offers a full service counseling and resolution approach. The broad range of experienced and specialized tax professionals have the skill and knowledge to reduce client’s tax liabilities and solve IRS tax problems. Rules established by the Internal Revenue Code and IRS regulations are used to help clients resolve matters with the IRS.
Tax professionals help clients:
Reduce taxes
Eliminate penalties
Provide experienced representation before the IRS
A no-charge initial consultation regarding tax problems is offered. The free initial consultation enables the Company's tax consultants to get information from the potential client about his or her tax problem and understand the nature of the problem.
From the initial consultation services and forms the client will need are determined a cost estimate for the client is prepared.
Client a fees are based on the type of tax problem addressed and the services provided.
An IRS collection matter
Preparing or amending tax returns (including schedules)
Negotiated settlements and/or
Audits
In addition, some rates will vary depending on whether client is an individual or a business. Built into the fees are the initial consultation with the IRS to determine all of the client’s problems and the preparation of a findings letter outlining the tax problems.
In addition to the fee, certain services will require our tax consultants to interact with the IRS, such as a settlement negotiation or an audit, for which a charge is made for additional consulting.
Services may be incurred on a “pay-as-you-go” basis and an installment plan.
First Tax Resolution Firm to Be Publicly Traded
TaxMasters completed a reverse merger with Crown Partners, Inc. in August, 2009 changing the company name to TaxMasters, Inc. (TAXS). Tax Masters was the first publicly traded tax resolution company in the United States.
Tax Masters Management
Patrick R. Cox is the founder of TMIRS Enterprises, Ltd., the predecessor to TaxMasters, Inc. Mr. Cox has been a director and TaxMasters’ President and Chief Executive Officer since January 2004. Mr. Cox is a Certified Public Accountant licensed in the state of Texas.
TaxMasters was started by Patrick R. Cox around 2001. In the 1990’s, Mr. Cox became the youngest ever vice president with Kemper Insurance Companies when he was promoted to Vice President of Finance at age 31.
Patrick Cox left Kemper in search of entrepreneurial success in the late 1990’s. When Mr. Cox started Tax Masters, he and Vice President of Sales Alex Clamon worked to manage and balance the company’s commitment to provide quality customer service with the ability to grow quickly.
Christopher J. Koscinski has served as the Chief Financial Officer and Treasurer of TaxMasters since September 2007. From October 2006 to September 2007, Mr. Koscinski was a Relationship Manager and Assistant Vice President at the Global Trust Department of the Bank of New York, where he handled compliance matters and assisted in the management of collateral in multi-million dollar secured debt financings. From July 1997 to October 2006, Mr. Koscinski worked in various capacities at AIM Investments, including as a supervisor in the retirement services group from January 2002 to October 2006.
Frederick V. Hackett has served as Chief Counsel Emeritus of TaxMasters since April 2009 when Mr. Hackett departed TaxMasters for active duty as an officer in the Judge Advocate General of the U.S. Army (“JAG”). Mr. Hackett served as General Counsel of TaxMasters from June 2007 to April 2009. From August 2005 to December 2006, Mr. Hackett served as an officer in JAG. He worked at Wauson & Probus, P.C. from February 2007 to May 2007 (as Of Counsel) and February 2003 to March 2004 (as an associate). Mr. Hackett was a police officer in the Rosenberg, Texas police force from March 1993 to October 2003. Mr. Hackett is licensed to practice law in Texas.
Michael L. Wallace joined TaxMasters in November 2008 and became the Secretary and General Counsel in April of 2009. From 2001 to November 2008, Mr. Wallace was Chairman, President and Chief Executive Officer of Salus Energy Enterprises, Inc., a biodiesel refining and trading company founded by Mr. Wallace. From 1998 to 2001, Mr. Wallace initially served as President and later in a consulting role as Deputy General Counsel at Trinity Energy Resources, Inc., an oil and gas exploration and production company. From 1993 to 1997, he served as the General Counsel of Noram Energy Service, Inc., a natural gas and power marketer. From 1978 to 1993, Mr. Wallace practiced law primarily in the energy exploration and production industry. Mr. Wallace is a licensed to practice law in Texas.
Glenn A. Clamon has served as the Vice President – Sales of TaxMasters since January 2004. Mr. Clamon is also a co-owner with his wife of Pelagic Marketing, Inc., which is a sales and marketing consulting firm that he and his wife formed in 2005.
Paulette M. Kitson has served as the Vice President – Human Resources of TaxMasters since December 2006. From June 2003 to October 2006, Ms. Kitson worked at Comerica Incorporated, a publicly traded financial services company, where she was a Banking Center Manger (2005 – 2006) and an Assistant Manager (2003 – 2004). Ms. Kitson has over 20 years experience in retail banking, including seven years of managerial experience in that industry.
Kevin L. Schmidt has served as the Chief Information Officer of TaxMasters since May 2008. From 2007 to May 2008, Mr. Schmidt was the Director of IT for the Houston Texas Fire Fighters Credit Union, a credit union that provides a range of financial services to its members. From 2003 to 2007, he was the Director of IT at American Intercontinental University, a private, multi-campus university.
Renee L. Anderson-Miller has served as the Vice President – Operations of TaxMasters since April 2008. From 2005 to April 2008, Ms. Anderson-Miller was an Operations Manager in accounting at Encompass Holdings, Inc., a privately held real estate investment firm. From 2002 to 2005, she was a Senior Tax Analyst and Audit Coordinator at El Paso Oil & Gas division of El Paso Corporation, a public traded energy company. From 1999 to 2002, Ms. Anderson-Miller was a Senior Tax Associate at Arthur Anderson LLP in its Houston Texas office. From 1994 – 1999, she was a Tax Assistant at The Coastal Corporation, a publicly traded energy company that was acquired by El Paso Corporation in 2001.
Board Directors
Michael E. Holdgrafer became a board director on August 4, 2009 and he served on the Advisory Board of TaxMasters since September 2007. He has been a corporate attorney for Dollar Thrifty Automotive Group, Inc., a publicly traded auto rental company, since March 1996 where he has handled acquisitions and employment matters (March 1996 to October 2008) and managed Dollar Thrifty’s properties and concessions group (since October 2008). Mr. Holdgrafer is licensed to practice law in Oklahoma.
David M. Hyink became a board director on August 4, 2009 and he served on the Advisory Board of TaxMasters since September 2007. Dr. Hyink has been retired since April 2007. From June 1980 to March 2007, he worked as Senior Scientific Advisor and Chief Forestry Scientist at Weyerhaeuser Company, a publicly traded forestry products company, focusing on topics and issues related to forestry and forest growth and development. Dr. Hyink received his Ph.D. in Forest Biometrics, Statistics and Operations Research from Purdue University in May 1979 and he received a Masters degree in Forest Biometrics from Stephen F. Austin State University in December 1972.
James S. Milholland became a board director on August 4, 2009 and he served on the Advisory Board of TaxMasters since September 2007. Mr. Milholland is a Region Vice President at Kemper, a Unitrin Business, where he manages Kemper’s casualty and property insurance business in a seven state region. Mr. Milholland has worked at Kemper since 1990.
Richard A. Wright Jr. became a board director on August 4, 2009 and he served on the Advisory Board of TaxMasters since September 2007. Mr. Wright has served as the President of Wright’s Reprints, a reseller of content and intellectual property from national publications, since 2000. He has also served as the President of Wright’s Printing, a commercial sheet-fed printing company since 2002.
Greg Ralph became a board director on September 17, 2009 and was appointed as Vice Chairman of the Board. Since 1985, Mr. Ralph has worked as an accountant at Ralph & Ralph, PC, an accounting firm based in Houston, Texas. He has been a Managing Director at Ralph & Ralph since 1993. Mr. Ralph has extensive experience in business audits, financial planning, business tax planning and compliance, litigation support in accounting matters and accounting issues in mergers and acquisitions and buy-sell agreements.
Contact :
TaxMasters, Inc.
NEED CONTACT POINT AND INFO HERE
About TaxMasters: TaxMasters, Inc. is an established tax resolution firm that provides tax relief to clients by assisting taxpayers with matters at the Internal Revenue Service (“IRS”), especially the resolution of disputes and assessments and the settlement of tax liabilities. TaxMasters, Inc. helps taxpayers in the United States solve tax problems. www.txmstr.com.
Forward-Looking Statement: This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements and/or Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
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