Liberty Tax fraud: UnhappyFranchisee.com has received information alleging that JTH, Inc., parent of Liberty Tax franchise system, not only condones but has provided training to its franchisees and employees in using deceptive techniques for maximizing customer refunds from the IRS.
This past Tuesday, a tax-preparer working for a Michigan Liberty Tax franchise pleaded guilty U.S. District Court to preparing and filing more than 40 fraudulent income tax returns.
According to the Detroit News, “Marquitta Nicole Jackson, 28, worked as a tax preparer at a Liberty Tax franchise from 2007-10 when she worked on the fraudulent returns for various taxpayers, according to court records.
“Jackson admitted she had prepared the returns to falsely claim the taxpayers had received self-employment income from a business they operated to maximize the Earned Income Tax Credit, according to court records. The taxpayers were not entitled to the credit.”
The Liberty Tax franchise preparer’s fraudulent returns caused the government to lose $155,000.
A sentencing hearing was set by Judge Judge John Corbett O’Meara for January 15, 2013.
Marquitta Nicole Jackson faces a maximum penalty of three years in prison and a $250,000 fine.
DO LIBERTY TAX PREPARERS ENCOURAGE CUSTOMERS TO LIE ON THEIR TAX RETURNS?
HOW PREVALENT IS THIS PRACTICE?
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Yes, its prevalent.
See my head nodding in agreement on this completely that it is trained thru 2010?
See my screen when I turn it to you?
See my body language, sighs, nods and expressions as the client answers the interview questions...I will give you more time to remember?
See the refund meter when I turn the screen to you when I choose to and watch your attention go from owing to growing refund number like a slot machine and go up and down, while we allow the client to recall and recant expenses and income until they hit the sweet spot and "maximize their refund" and give value in the sales price we charge per form? We can take that form out if you want to pay cheaper but OH that drops your refund to so much lower, see?
See we don't need any proof of your records as they are for you to keep because "it is between you, God and the IRS"?
Stand up and testify- All of you 2010 and under franchisees if there are any left by now.
One way to even the score is to go after preparers and not just the zees deemed as "rogue" now. So it seems the Liberty Tax defense strategy is becoming a bit more well-rounded and spread out on their counter attacks.
Has anyone been aware that John Hewitt and Danny Hewitt are the one's under the largest investigation? But this story is important, because it shows just how low they will go to keep focus off themselves. They will throw their own under the bus with American flags hanging out each window as no one will hear the thumps through the cheering of ringing the Nasdaq Bell, starting a sign spinning company for little Danny to get his back taxes paid.....and on and on....
As long as Danny keeps doing things dad's way, he will continue to pay his severence, legal defense and allow him to be a sign spinning vendor to replace wavers, because "that is how they hewitt". It is time for the Danny to speak out as he did to me, yet, he sits in silence and selfishness all this time holding each other under blackmail. Only Danny has the power to blow the whistle on daddy CEO and stop the insanity; yet he is chicken because he is now making more $$$ since he resigned. Bankrupt, loosing cars and homes and territories swiped by your own father gets old like asking for rent money when he was busting his rear end on salary. He....."have kids you know, can't just come out like that and risk it all until the right timing." Yet, he sent messages such as "You did not deserve what they did to you" to show his compassion. Who has any compassion for all the people that have been trained using closing the sale techniques which now includes preparers to even out the franchisees (zees) they have attacked? Now let them make a webinar called, "HOW TO NOT GET YOUR PREPARERS NAILED TO THE CROSS", so they can appear concerned. It is disgusting what they are doing but Danny must not be ready to speak out, only make new friends and client's for his own interests and very quick money by networking through Liberty Tax before the walls cave in because HE has kids to send to college and we did not? His words to me end of April 2012 was "I don't speak to those people anymore and not with the company, I got tired of seeing this happen and everyone get screwed over as I did for 1.1 million." Well that statement got blown all to Haiti, now didn't it? He sure takes plenty of trips and friends many new franchisee suckers rebuying stolen territories.
-Trisha
"One way to even the score is to go after preparers and not just the zees deemed as “rogue” now. So it seems the Liberty Tax defense strategy is becoming a bit more well-rounded and spread out on their counter attacks."
Trish: I don't understand what you mean by this.
Why is law enforcement going after preparers instead of franchisees?
And what does Liberty Tax have to do with it? Why would they want their preparers getting charged, dragging down the LT name?
It is not dragging the brand name by doing this. It is helping them. They are not telling their current franchisees or the public about their federal lawsuits and investigations going on right now and heated up with new evidence. They are quick to announce on znet about when OTHER competitors are in trouble as they know so much about it. Why do so many franchisees sue Liberty by their 5th season is another question you should be wondering about. Why have they sent many franchisees renewal contracts saying " I forgive any wrongs Liberty has done in the past and will not sue anyone", yet don't tell what they did wrong? As a part of their ongoing defense strategy, they need to show a nationwide epidemic of "rogue" employee, zee and now, preparers spread out more evenly between territories, because a pattern over the years has now been noticed by the head authorities. John Hewitt made a comment in the press that he has never seen a CEO have to be responsible for franchisees' actions.The DOJ and IRS have been led for many years to people and diverted from the main investigation of scheme promoters, John and Danny Hewitt, intentionally. Look up what an IRS 6700 investigation is. Once they noticed the same pattern with the competitor names before and after Hewitt was kicked out, (yeah they fired him, he did not sell Jackson Hewitt and he kept plants inside Jackson Hewitt until they came work for him recently, such as Mazer and Wheaton) then they changed their defense plan to now include showing there are also just bad preparers who they claim were never trained by Corp to do things a certain style to close the sale, and not just bad franchisees and trainers. It is also another intimidating way to get the franchisee not to talk to the IRS, as hundreds have, about their training with certain people such as Annie Fuller and others. Liberty Tax stole her territories and DMA back by terminating her contract, regardless of her intimate relationship with the CEO like Martha O'Gorman and others, not standing by Fuller, and is suing her for(can't say) as well and claiming they are "disgusted at her training and had no idea of her teachings and was not present for certain training sessions" which is false and angered the IRS. LT could not even provide a roster and denied certain boot camps and somehow lost all their conference calls and emails that existed in 2007-2010 involving her trainings and speeches that the IRS requested. The cases are still pending quietly, such as a new opening of the South Carolina case for racketeering based on new evidence (RICO case of clients against Liberty Tax). This case is a large threat to their financial position on both civil and criminal levels and they won't be telling anyone on the fan bus about it and keep prolonging it as much as possible for a decision to settle or let it go to jury trial. They are shorting their own stock and need to keep turning and burning territories quickly by reaquiring and reselling old territories and getting rid of older franchisees that may be called in as witnesses if they were in the system before 2010. This has been going on since mid 2010 when they gagged Annie, then bribed her to testify falsely and she did, then they sued her anyway and never paid her their agreement of $300k. That is why Annie does not speak to anyone and soon they will gag others or try. Anyone interested in talking about their experiences with their trainings and ethics concerns, please contact JerryArrington at IRS dot gov. I don't care how they come out on their lawsuit, I have the truth and proof. They are dirty and getting sloppy so they will take your first born to save their tail right now from crippling losses and a shutdown. You may contact me by writing to Admin on this site for permissions to share email address if you have more questions. Once again, I must remind Corporate they are not allowed to speak with me directly or indirectly about the RICO case as it will be considered intimidating a federal witness AGAIN. --Trisha
New Liberty post:
LIBERTY TAX Leaked Email Exposes Sleazy Sales Tactics
How come F&D-Tard and Mike, Stained Dress Trisha haven't posted this yet....
Nasdaq stocks posting largest percentage increases
Top 10 Nasdaq-traded stocks posting largest percentage increases
Associated PressAssociated Press – 2 hours 12 minutes ago
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Companies:
CollabRx, Inc.
Insmed Incorporated
Oconee Federal Financial Corp.
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I guess because the stock is still below it's initial asking price of $14.00.
Looks like it went over today....
Board got quiet. Company will be bigger than Jackson Hewitt this year and on it's way to be number 1 by 2020 now that they will be in Wal-Mart all over the country.
You need to worry about Jackson Hewitt. They are quietly on the rebound. Starting to use Liberty tactics for free advertising. I think their next move will be a price war, if they can figure out how to afford it.