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

Court Upholds Ban on Preparer Regulation

An appellate court has upheld a lower court ruling that struck down the attempt by the Internal Revenue Service to regulate professional tax return preparers. The ruling means the attempt to impose examinations and educational requirements remains dead under the current law.

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U.S. Seeks to Close Preparers in Three States

dojThe Justice Department went after tax preparers in three states last week in efforts to shutter individuals and business it claimed abused the tax return process. The court actions included the effort to close down Salt Lake City, Utah, preparers Rulon Sandoval, Andrea R. Acosta Hernandez and Latinos Office for allegedly fabricating deductions, falsely claiming tax credits and using false preparer identification numbers.

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Georgia Preparer Draws Federal Ban

dojA Georgia tax preparer who operates a Liberty Tax store has been permanently banned from preparing federal income tax returns for others. The Department of Justice alleges that the actions of Joan Leger of Stone Mountain, Ga., may have cost the United States more than $2 million in lost tax revenue.

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Tax Season 2014 Opens

irs It would be nearly impossible to tell you threw out the first return to start the 2014 tax season. Preparers have been working on returns for some days. But after a delay stemming from the government shut down last year, the Internal Revenue Service began processing returns on January 31.

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N.J. CPA Pleads Guilty to Tax Return Fraud

Fraser CPAA Maplewood, N.J., CPA has pleaded guilty to filing false tax returns. Carlyle Fraser, owner of Fraser CPA and Taxko, faces up to three years and prison and a possible fine of $250,000 for pleading guilty to one count of aiding and assisting in the preparation of false individual income tax returns for clients from 2008 through 2011.

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Jackson Hewitt, Republic, Enter New Deal

Jackson Hewitt Tax Services and Republic Bancorp have entered a two-year agreement under which Republic will provide bank products to the tax preparation chain. The agreement followed the conclusion of arbitration between the two sides over Jackson Hewitt's termination of the contract between them in 2012.

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Georgia Tax Preparers Plead Guilty

DOJA husband and wife team of tax preparers have pleaded guilty to crimes relating to the preparation of false tax returns. The couple, Detrick and Natashia Tucker, owned and operated a tax preparation business named T&T Express Tax located in Pine Mountain, Ga. Detrick Tucker pleaded guilty to aiding and assisting in the preparation of false tax returns, and Natashia Tucker pleaded guilty to conspiring to defraud the United States in the assessment and collection of federal income taxes.

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A Last Look at Software Before Tax Season

Jordan Kleinsmith, Thomson ReutersSomewhere after everyone stops talking about healthcare, there is a tax season coming in which the major purpose is still preparing tax returns. And in the rapidly approaching season, there is a great deal of emphasis by publishers of tax software on improved performance and an unusual number of problems that afflicted tax software during the last season is only part of the reason why.

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Block Testing Health Insurance Sales

William Cobb, H&R BlockH&R Block is conducting a test of selling health insurance in its stores in the Phoenix, Ariz. The test is part of a wide ranging set of healthcare services discussed earlier this month when executives of the tax preparation chain held an investor's day that covered the company's plans for 2014.

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Four Preparers Face 63-count Indictment

DOJFour Minneapolis, Minn.-area tax preparers have been indicted on 63 counts that claim they stole identities, filed bogus returns and looted clients' debit cards. Chatonda Khofi, Ishmael Kosh, Amadou Sangaray and Francis Saygbay are accused of conspiracy to defraud the Internal Revenue Service. Each defendant faces multiple counts of aggravated identity theft and multiple counts of aiding and assisting in the preparation of false individual income tax returns.

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