Yesterday, TaxMasters, Inc. (OTC:TAXS) got back on track. After a week of zero price changes, the stock soared 2.70% on the 
market and finally moved up in the chart.
The reason for the gain is obvious – promotions. It was just yesterday, when TAXS was promoted byPennyStockProfessor.com that apparently pumped up the stock price at once. The compensation for the campaign totaled $10.000, paid by an unknown promoter. Looks like the promotion came as a follow-up of the previous day’s news, which however, failed to support TAXS stock price.
On Monday, TaxMasters reported that IRS was delivering a record number of audits and taxpayers should be wary about this. Despite the company’s warning, TAXS stock price remained frozen and only yesterday’s promotion managed to push it up. In any case, trading volume of TAXS decreased, meaning that its market position is not enough secure yet.
TaxMasters, Inc. is a tax resolution company employing tax professionals, such as accountants and lawyers, to assist taxpayers to resolve disputes, assessments and liabilities with the IRS. Unfortunately, the company’s latest quarterly report doesn’t look good at all.[BANNER]
As of March 31, this year total liabilities of TAXS were more than three times higher compared to its assets, and the company’s long term debt exceeded $1 million. At the same time, the stockholders’ deficiency got over $11 million, while the accumulated deficit totaled $13 million.
Considering all the losses, even with the revenue increased, TaxMasters will hardly be able to cover its liabilities. Based on some open contracts, the management believe that their existing cash and expected cash flows will be sufficient to meet the projected operating expenses at least through December 31, this year. However, at this point none of these claims can be guaranteed.
