TaxMasters, Inc. Announces Financial Results For 2009

HOUSTON, April 19 /PRNewswire-FirstCall/ -- TaxMasters, Inc. (OTC Bulletin Board: TAXS), today announced the company's financial results for the year ended December 31, 2009.

For the year ended December 31, 2009, TaxMasters' net revenue increased by approximately $20.9 million, or 131.8%, to approximately $36.8 million, compared to approximately $15.9 million for 2008.

Total operating expenses for the year ended December 31, 2009 were approximately $37.2 million, an increase of approximately $17.3 million, or 86.9%, from total operating expenses of approximately $19.9 million for the same period in 2008.

For the year ended December 31, 2009, the company reported net loss from operations of $437,707, a decrease of approximately 89.2% from a net loss from operations of $4.05 million for the same period in 2008. For the year ended December 31, 2009, the company had a net loss before income taxes of $560,604, a decrease of approximately 86.2% from a net loss before income taxes of approximately $4.06 million for the same period in 2008.

For the year ended December 31, 2009, the company reported net income of approximately $4.8 million, or $0.02 per share, versus a net loss of approximately $4.06 million or $(0.01) per share for 2008. This reduction in loss is mainly due to the $20.9 million increase in sales revenue offset by increases in compensation costs and advertising expenses.

"We are pleased with our continued growth in revenue and our improving operational efficiency as evidenced by the significant decrease in our net loss from operations in 2009 versus 2008," said Patrick Cox. "The economic downturn, coupled with increased collections efforts by the Internal Revenue Service has created a growing demand for help with tax problems. This demand was reflected in our growth in 2009 – both in terms of revenue and personnel we hired. Thousands of tax payers across the United States reached out to TaxMasters during 2009 for help with filing past due returns, negotiating settlements with the IRS and coming back into tax compliance."

Cox continued, "The year marked TaxMasters' entry into public markets, trading under the ticker symbol TAXS. This has provided us access to increased capital and the ability to grow with the market demand for our services. So far, we have seen an increased demand for our services in the first quarter of 2010, and we believe that revenue for 2010 will exceed that of 2009."

Cox concluded, "Looking forward, we will continue to aggressively market our company and services via national advertising to increase our revenue growth even further, while prudently managing increased operating expenses and looking to maximize efficiency. We believe that this strategy will result in significant revenue growth over the next year, and eventually lead to growth in net income."

In conjunction with this release, TaxMasters will provide an audio review of financial results of the year ended December 31, 2009 via its website at www.txmstr.com. The review will be available for download and review on April 29, 2010. For a transcript of a review, please email your request to [email protected] after April 29, 2010.

About TaxMasters, Inc.
TaxMasters, Inc. (OTC Bulletin Board: TAXS), the IRS tax relief company, is the first publicly traded tax resolution firm in the United States. Started by Patrick R. Cox in 2001, TaxMasters offers services and counsel to taxpayers across the country facing seemingly insurmountable tax problems, and relief from substantial federal tax debt.

Employing over 300 people, TaxMasters leverages the expertise of ex-IRS agents, enrolled agents, attorneys, CPAs, and seasoned tax consultants ready to counsel and assist every day people with their specific tax problems today.

For more information about TaxMasters, Inc. and its commitment to help taxpayers in the United States solve tax problems, please visit www.txmstr.com.

Follow TaxMasters on Twitter at http://twitter.com/gotaxmasters.

Visit TaxMaster's blog at http://www.txmstr.com/blog/

Forward-Looking Statements
Any forward-looking statements, as defined in the Securities Exchange Act of 1934, in this release (often identified by such words as "believes," "expects," "beginning," "intended," "planned") regarding future expectations, objectives, and plans for TaxMasters, Inc. are based on opinions and estimates of management at the time the statement was made. Various known and unknown factors may cause actual results to be materially different from the expected outcomes. TaxMasters, Inc. does not, as a matter of policy, update or revise forward-looking statements. Actual results may vary materially.

SOURCE TaxMasters, Inc.