Tax (1460)
The assets of NextPoint Financial, parent of chain Liberty Tax, have been sold after approval by a Canadian Court and under Chapter 15 bankruptcy in the United States.
Liberty and Canadian Community Tax will continue to operate under the ownership of BP Commercial Funding Trust, Series SPL-X
The action was spurred by NextPoint’s disastrous acquisition of LoanMe, which was supposed to be operated in tandem with Liberty as a one-stop consumer operation. NextPoint purchased both LoanMe and Liberty in 2021 but shuttered LoanMe for new loans in July 2023. NextPoint sued AmeriFirst Home Improvement Finance seeking millions of dollars in damage for the alleged failure of AmeriFirst to live up to the terms of a loan servicing contract.
LoanMe, which had continued to service existing loans, will be wound down. NextPoint’s announcement said there would be no assets to distribute to creditors
Preparer Pleads in Biz Sale Scam
A Nevada tax preparer who used police lights on his car and posed as FBI agent to collect a fee, has pleaded guilty in a case involving ID theft and money laundering. King Isaac Umoren, 41, of Las Vegas was also charged with using a phony client list to sell his business for $3.8 million.
IRS Hikes Mileage for 2H 2022
The Internal Revenue Service is hiking standard mileage for business travel for the second half of 2022. An increase to 62.5 cents per mile will be in effect starting July 1.
IRS Seeks More than 4,000 Reps
The Internal Revenue Service this month is holding virtual and in-person information events in support of its effort to hire more than 4,000 customer service representatives. The effort comes as the the ability of the IRS to provide service declined during the pandemic.
Preparers Charged in ID Theft Case
Two Orange County, Calif., tax preparers have been charged in a case involving ID information provided to them by a social worker. The preparers, Anton Nguyen and Rosemary Pham, have pleaded not guilty to conspiring to defraud the United States.
Texas Couple Sentenced in Tax Fraud
A couple who operated a tax preparation business in Duncanville, Texas, have been sentenced to more than 30 months each in prison. Valcencia Janee Mack and former husband, Rodney Lamond Bowman, drew the sentences for return fraud.
Taxpayer Trust of IRS Drops
Taxpayers’ trust of the Internal Revenue Service has dropped from 2020, according to a survey conducted in the fall of 2021. At the same time, trust in the agency’s ability to fairly enforce tax laws dropped to 66 percent from 72 percent.
Bloomberg Debuts New Portfolio
Bloomberg Tax & Accounting has introduced a new Tax Management Portfolio. The publication, Global Intangible Low-Taxed Income, was written by Libin Zhang of Frank, Harris, Shriver & Jacobson.
Complex Returns Help Block’s Quarter
H&R Block revenue rose 3.9 percent for the third quarter ended March 31. The recently released results show the number of tax returns prepared dropped by 14.9 percent year-over-year, largely reflected the extension of tax season in 2021 to May.
Tax Collector Sentenced
A Pennsylvania tax collector has been sentenced to a year in prison for not reporting fees she collected to supplement her income. Rosezanna Czwalina of Morton, Pa., must also by $112,845 in restitution for failing to report income for tax years 2014 through 2018.
IRS: Destroyed Docs Won’t Hurt Preparers
The Internal Revenue Service says the destruction of 30 million paper information returns will not impact taxpayers or preparers. The IRS has been heavily criticized this month for the destruction of the returns, mainly Form 1099s, which the agency blamed on aging technology.
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