Tax (1572)

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

Start Up Developing Web-based Tax Application

Stuart McLeod, Balanced LabsBalanced Labs, a start-up company, is developing a cloud-based tax application. Founded by two former Xero executives, Balanced Labs also plans to develop collaboration and workflow tools for accountants, according to a bare-bones website established by the company, which is based in San Francisco, Calif., and Sydney, Australia.

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Expenses, Small ACA Impact Hurts Liberty

John Hewitt, Liberty Tax A 17.5-percent increase in operating expenses coupled with a write-off of its online software drove net income down by 62 percent for Liberty Tax's year ended July 30. The tax preparation chain also reserved $7.6-million in costs for potential losses from two class action law suits.

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Preparer Program Linked to IRS Representation

John Koskinen, Internal Revenue ServiceAlmost 44,000 individuals completed the Annual Filing Season Program in 2015. Meanwhile, the Internal Revenue Service linked completing that program and its continuing education requirements to the ability of some tax preparers to represent clients before the IRS. 

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Avalara Buys VAT Products

Patrick Wille, VAT Applications Avalara has acquired VAT Applications, a company based in Belgium that develops the iVAT suite of applications. It is the latest in a series of acquisitions Bainbridge Island, Wash.-based Avalara has made in the indirect tax market. This year, the sales and use tax company has already acquired to specialized indirect tax companies, HotSpot Tax and EZtax.

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D-I-Y Tax Prep Helped Block's Year

Bill Cobb, H&R Block H&R Block has talked about the need for the services of its tax preparers. But it was do-it-yourselfers that gave Block the largest percentage growth in revenue for its year ended April 30. D-I-Y fees grew 12.1 percent to $228.4 million for the year just ended while overall revenue was up only 1.8 percent.

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Former CPA Must Pay Clients $1.6M

A former Waseca, Minn.-based CPA has been ordered to pay clients $1.6 million that he stole from them while preparing their taxes and handling investments. Roger Goetz, Jr., received a four-and-a-half year prison sentence after pleading guilty to two counts of wire fraud. He was also ordered to undergo three years of supervised release.

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Avalara Buys Telecom Tax Company

Tim Lopatofsky, EZtaxAvalara has acquired EZtax, which makes tax compliance products for the telecommunications inudstry. The company's software, which bears the same name, calculates and files taxes due on such services in the United States and Canada. Terms were not disclosed.

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IRS Notifying Hacked Taxpayers

IRSThe Internal Revenue Service plans to notify thousands of taxpayers whose accounts were recently accessed by hackers about the incidents. The IRS says intruders were able to use information such as Social Security numbers and dates of birth and street addresses, obtained from non-IRS sources, to access its Get Transcript" application.

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IRS Refunding Preparer Test Fees

irs tv logoThe Internal Revenue Service is scheduled to return millions of dollars in fees paid by those who took the Registered Tax Return Preparer test. The IRS next week plans to mail checks of $116 each paid for the roughly 89,000 tests that were paid for and taken between November 2011 and January 2013. Some preparers took the test more than once.

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Indirect Tax Battle Becomes Global

Scott McFarlane, AvalaraIt is unlikely anyone would call the market for indirect tax products exciting. But in the last few months it has become much more interesting as the outlines of global competition for customers in this arena has started emerging. And it has gotten more interesting because of the amount of money invested in the battle in response to worldwide trends.

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