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

Intuit Battles New TurboTax Charges

Intuit's issue with publicity surrounding fraudulent efiling of state tax returns prepared via TurboTax took a new turn this week. The company is denying claims by two former employees that it put profits ahead of ethics. The Mountain View, Calif.-based company flatly denied the charges, saying it has been vigorous in combating fraud.

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Results Disappoint Liberty Tax

John Hewitt, Liberty Tax ServiceResults for the tax season through February 13 disappointed Liberty Tax Service. The Virginia Beach, Va.-based tax store chain said this week that the company and its franchises saw a slight drop in the number customers compared to the same period in the 2014 tax season, although system-wide revenue was up.

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Intuit Buys Encryption Business

Gilad Parann-Nissany, PorticorIntuit has acquired Porticor, an Israeli company that makes encryption products for cloud-based applications. The deal was concluded on February 2, days before Intuit faced widely publicized fraud with efiling of some TurboTax state returns. Intuit said the problems, which halted some state filing for one day over February 5 and 6, did not occur from a breach or its tax process

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TurboTax Strong Despite Bad Publicity

Results of current tax season shows that despite some giant headaches hitting Intuit the last two weeks, they have not bothered the company's booming online business. The number of TurboTax units sold through February 14 were up 11 percent with the number of TurboTax Online units rising by 19 percent while sales of QuickBooks Online continued to boom.

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IRS Tests Walk-in Help

John Koskinen, IRS CommissionerThe Internal Revenue Service has begun testing walk-in taxpayer help at 10 of its larger Tax Assistance Centers. The IRS wants to determine if appointment-based service can reduce waiting times at the offices that it indicates have lengthened because of budget cuts.

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Minnesota Tax Pro Faces 52 Counts

Rona Griffin, tax preparerA Minneapolis, Minn.-based tax preparer has been charged with filing hundreds of phony tax returns and repeatedly failing to file her own income and corporate taxes. Rona Griffin, 52 years old, faces 34 counts of preparing fraudulent tax returns, three counts of filing fraudulent tax returns, seven counts of failing to file income and corporate tax returns, and 8 counts of failing pay corporate and income taxes.

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TurboTax State Efiling Resumed

Brad Smith, IntuitIntuit resumed efiling of state income tax returns prepared via TurboTax on Friday after briefly halting the process. The company took its action after states reported an increase in suspicious filings and attempts by criminals to use stolen identity information.

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Tax Pro Efilings Boom

irsThe number of tax returns filed electronically by tax professionals outstripped the growth of those that were self-prepared. Those numbers represent a change in the pattern of the last few years and came as the Internal Revenue Service this month released the first tally of statistics for the current tax season.

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Delaware Preparers Guilty of Fraud

Kamal J. James (Sheik Messiah Aziz E); and Crystal G. Hawkins (Sheikess Crystal Gabri El)Two owners of a tax preparation business, who used prison inmates' returns to claim inflated refunds, have been convicted on several charges. A jury took one hour to convict Kamal J. James and Crystal G. Hawkins of conspiracy, mail fraud and making false claims to the United States for filing returns on behalf of inmates at New Jersey prisons and halfway houses.

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TurboTax State Filing Halted

Brad Smith, IntuitIntuit has had better months for TurboTax. A week ago, it said it would reverse a decision to pull key forms from the desktop version of TurboTax Deluxe. This week, it halted transmission of state income tax returns after reports of fraud emerged in 18 states while Minnesota said it was not accepting returns prepared via the Intuit product.

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