Tax preparer Jackson Hewitt accused of fraud

[RamboLiberal]

Source: MSNBC/AP

The government said Tuesday it is trying to shut down more than 125 Jackson Hewitt tax preparation stores in four states for systematic “tax-fraud schemes.”

The Justice Department accuses the franchises of bilking the government out of more than $70 million through fraudulent practices such as using phony W-2 forms, bogus deductions and fuel tax credits and false claims regarding the earned income tax credit.

Jackson Hewitt Tax Services Inc. is the nation’s second largest tax preparer. The franchises were either totally or partially owned by Farrukh Sohail, the Justice Department said, and involved “a pervasive and massive series of tax-fraud schemes,” according to court filings.

Sohail and other defendants “created, directed, fostered, and maintained a business environment” at the Jackson Hewitt franchises “in which fraudulent tax return preparation is encouraged and flourishes,” according to court documents.



Read more: http://www.msnbc.msn.com/id/17935250/

[Joe for Clark]

1. I am so not surprised.

There was this question I had in my mind for months about an "annonimous" poll taken of tax people about this kind of thing. They asked the question that you could answer annonimously - if you thought other tax people engaged in dishonest practices. And I told them I don't anybody stupid enough to risk their career for that kind of thing.

But I guess there really are people that dumb and they work there.

Joe

Thanks for the post - explains a lot to me.

[rainbow4321]

2. Yep....a relative of mine worked for them

in Oklahoma and was basically told to do whatever the customer wanted, no questions asked. I imagine the "4 state" investigation will be expanding sooner rather than later. She didn't go back to work for them the next season.

[AlCzervik]

3. How much do places like that charge?

i go to a cpa and it's $225 for my returns, it's money well spent.

[Joe for Clark]

4. You want to know the national average??

A good accountant is based on the time spent.

Places that advertise the best refund - be careful of.

Joe

[AlCzervik]

5. i'll stick with my cpa, she's the best.

[Joe for Clark]

6. Just stay away from J-H, I guess.

The people you want to go to - they don't "make up W-2s" - or whatever.

She sound fine to me -

Joe

[AlCzervik]

7. it's a small firm, My accountant and 3 others and thats it, she saved our asses

last year because of a dumb mistake we made uing turbo tax, our fault because we shouldn't have been using TT.

[Joe for Clark]

8. The good firms are small - really true.

And DON'T use Turbo tax.

It is that bad.

This year, at the end of the year - congress changed the tax law - after the revenue service printed the forms - caused total havoc.

This is a really bad tax season for us - maybe not for you - but if you were us, you'd be at the end of your rope. WIthout warning, major system upgrades and you are down for three hours - every other day.

I have never lived thru anything like this - and I have been an accountant for a long time.

Stay with the small firms.

Joe

[tanyev]

10. What's bad about Turbo tax?

We've used it for several years without any problem.

[Joe for Clark]

11. I don't even know where to start.

I have gotten six major upgrages, maybe 38 technicals since January.

You get any??

Revenue Service does look at self prepared returns. They know they can get adjustments there.

Joe

[tanyev]

12. I dunno. We just load it right before we're ready to do taxes,

and a couple hours later we're done. I guess our situation is fairly simple, though. No kids, no self-employment, we don't claim any expenses, etc. Seems silly to take it somewhere to have it done.

[Joe for Clark]

13. It is probably ok - ignore me.

Joe

[AlCzervik]

14. turbo tax was fine for us for a long time but then our tax obligations

got complicated for several reasons and thats why we started using a cpa. My problem wasn't the TT program, our problem and tax situation needed a professional and a tax attorney.

[TheFarseer]

9. I work for Block and

it is not our job to give clients the 3rd degree over charitable contributions, dependents, and things like that. It IS our job to make sure they know they could be audited and if they can't prove they are entitled to the deductions or credits they are claiming, they can be hit with an audit and thousands of dollars in back taxes. Most people who are not telling the whole truth will decide to play it safe or just get up and leave when you put it like that.

Jackson Hewitt, meanwhile has a reputation among the Block people for being fly by night, gimmick-oriented, unprofessional, with untrained people working there. I'm sure many of their tax professionals are very good, but the company WAS founded by someone who believed Block focused way too much on training. Hmmmmmmmmmmm