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Liberty Franchisee Barred from Tax Prep

justiceA man who operated Liberty Tax Service franchise stores in Detroit, Mich., and Chicago, Ill., has been prohibited from working as a return preparer and from owning, operating of profiting from such businesses. The Internal Revenue Service says Syed N. Ahmed, who operated at least 10 Liberty locations, cheated the government out of $2.8 million.

An injunction permanently bars Ahmed from preparing federal tax returns from others. He and his companies agreed to the injunction but did not admit allegations made against them in a civil complaint. The companies named are Nasah, Inc., Millinium Financial Solutions, Inc., Mars, Inc.-Hamtramck, and Mahad, Inc.

The IRS says Ahmed and his companies hiked client refunds through false or inflates Schedule C income and expenses bogus dependents, false filing statuses, improper education credits and false itemized deductions. His locations prepared 17,759 returns from 2010 through 2013.

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