LIBERTY TAX SERVICE Franchise Complaints

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• Guest,
  Actually I didn't assume that at all. I didn't assume anything.
  What I dix assert was that a 2nd year franchisee goes so amazingly successful that she is named the franchisee of the year and brought on to teach other franchisees how to do it. This same franchisee was so fraudulent she was shut down by the authorities in short order. Legal authorities don't shut preparers down this quickly unless there is profound evidence of fraud. You get warnings and warnings before they shut you down unless it's on a massive scale. That's what happens. In 2 years this franchisee caught the eye of the authorities and the eye of john Hewitt.
  John Hewitt said "way to go, your the best franchisee this year. Come on conference calls and teach the others your secret of success"
  The authorities said "hey what's going on here. We better check this person out." Then after a short investigation said "my god. Shut her down right now"
  I didn't mention eitc in my post.
  Eitc is a great credit that legally benefits millions of citizens. It's been praised by presidents in both sides of the isle. It has also benefited the paid prep market by incentivizing millions of taxpayers to file returns where before the credit they were below filing requirements. I never said otherwise. It is apparent that it also incentivized this liberty franchisee to commit fraud for financial gain. She did it right outside of va beach. She was rewarded by John Hewitt. She is being held to account by the authorities.

• All "three" big tax preparation services promote and encourage fraudulent returns everyday during the first peak. When a schedule C is attached to a "cash" business, you know things are going south real quick. If my people have a "cash" business, no business license, no advertising, no business cards and especially no 1099-MISC. and not credible receipts. They end up with a tax bill from me! Pay your self employment fraudster.

  H&R Is the big hitter in my community. They also encourage and promote "cash" business' for EIC. I ended up with several of them when I opened my LTS store. They came in droves. After a year or two, I sent them packing with their self employment payment to pay up or clean up.

  Someone up top mentioned the top fraudster's in LTS. Especially one out of California, he sent would be on phone call's talking up a storm about how much business he had on January 1 and 2. As the cpa in our phone call stated, how do you do that and be legal? Our top gun guy just stated, they all have a cash business and they reconstruct the receipts and money to file a return. I bet an IRS agent would love to drop by his stores in early January to see the operations. These people mentioned above have 500-1000 returns before peak even starts and they are all "cash" businesses.

  So the big places have fraudulent returns, more than a smaller office with tight measures put in place. People go to these offices because no one ask any questions and they are in and out in less than 15 minutes. Nothing is asked to prick their conscience. LTS and H&R just charge them $500 - $600 a return just to turn a blind's eye to this theft.

• Franchisee,
  My point is that you will never see an H&r block or Jackson Hewitt franchisee of the year shut down like this. Yes they are everywhere. There are cheats everywhere. In my area it's the independents. There have been several shut down and sentenced. If you are saying that fraudulent eitc is limited to franchisees of the 1 big and two little national chains you've got blinders on.
  The difference is that those successful by fraudulent means in the liberty system are rwarded by and elevated by the franchiser

• Franchizee/Fox News Viewer,

  One franchisee out of 2000 is accused of fraud and you assume all 2000 are committing fraud. What You are such a moron you are! I bet you believe all Muslims want to kills us because of a few bad apples.

  What if a person truly gets paid in cash for his services, please tell me what he is supposed to do according to your self created tax laws? Pay Self Employment Tax and be exempt from getting the EIC becuase you say so and you believe it should be that way?

  Who would issue him or her a 1099? His customers that he or she provides services to? Do you even know tax laws? Only businesses that cut checks to individuals are suppose to issue them a 1099. Individuals don't issue other individuals 1099s.

  Also, please stop watching Fox News, as I would bet 100% you have that one right now at your house. I know your type! I bet you didn't do any customers with ITINs either did you? I could see you now "Ya'll should not be in my country anyways" while you are driving you pick up truck with you confederate flag on it.

  Maybe you need to learn the tax laws before you prepare tax returns? You were giving a tax bill to all your customers that had a business where they were paid in cash? Please tell me when it became a crime to get paid in cash for services? What happened to the world before credit cards and debit cards. Should these people not report their income at all, is that what you would recommend? I am just curious as to where in the tax code or any type of law that says it is illegal to get paid in cash by your customers. You are true idiot!!!

  As a matter of fact right now, if you have any income you have earned, whether in cash, credit cards, checks or whatever you are required to report it on your tax return whether or not you received a 1099. If based on the calculations you qualify for an Earned Income credit, who are you to decide they should have a business license, or business card or have a 1099? Again, not sure who you think would be issuing them a 1099. You are just assuming everyone that makes little money is a scammer and is committing fraud. Also, you apparently have a problem with our laws and the Earned Income Credit. Again, please stop watching Fox News you dumb idiot!

  Again, been busy all weekend supervising my offices. We continue to grow every year. Also, before you reply I can tell you Schedule C EIC returns is a very small part of my business as my offices are not located in Inner Cities but in a low to mid income suburb of a large city. I def get some in the early season but that dies out quick and we are sure not doing them right now.

• Hey John you are back.... Welcome for making even more widespread statements.

  Fraud is everywhere. It is especially in the big 3 because they are trying to do everything fast and furious during a short amount of time.

  People receive money, but if it is only CASH, there are red flags and they don't have a bank account, they don't care a business license, they don't have business cards, they don't have any listings, then what in the world are they doing? They don't have an EIN and nothing seems above board, there is a red flag.

  Take a course in SEC/Finra on fraud. Take an ethic's class online. Don't tell me what you are writing does not come into play as borderline "money laundering". Take a course on Money laundering in general.

  Obviously, John has not done an EIC with a schedule C on a tax return. Had he done EVEN one, he would know that there are litany of questions regarding a schedule C that must be answered and be documented.

  If I was the IRS, I would be looking at your EFIN's and pulling tax returns to see what you are not noticing.

• Barilla,
  You guys take the cake. "Accused" of fraud? No, they shut her down.
  Just one of 2000 franchisees?
  No, the franchisee that was singled out as the best. The best of the best.
  Just a franchisee? No. The franchisee that was brought in to conference calls to teach the others.
  Remind you of anything? Annie Fuller? Another of the top guns? The best of the best?
  I never said anything remotely close to all 2000 are committing fraud. I said the one the john Hewitt praised and rewarded and held up as the standard bearer, the one he wanted to teach the other franchisees how you "Hewitt" is a fraudster. Yea, she apparently can't do taxes anymore.
  Get it? Stretch it all you want. This past week there was a liberty AD that tried to murder a baby. The franchisee of the year shut down and reported decrease in returns.
  Say that I said whatever. It's cool. You know I didn't say anything like all 2000 franchisees were committing fraud. You also know it's not just some random franchisee out of 2000.
  Spin it how you want. Spin is the king with liberty.

• Also, if you've ever been to an audit were business vs hobby/ business qualifying for eitc you would know it's not as simple as your making it out to be.
  Bet you do a lot of "house cleaners" and "lawn mowers"
  If the client can't provide me with more than a couple of figures scribbled on the back of an envelope I'm not signing an eitc return.
  If you have a business irs requires it to be run like a business. Documentation and Proof of income. Documentation and proof of expenses. Mileage logs etc etc.
  If your doing a lot of schedule c's in the first week of January yea, I'd looked at you.
  Do I think a business that gets paid only in cash doesn't deserve eitc? No way. But if that "business" comes in with "income=$17000 expenses=2500" scribbled on the back of an envelope and "I'm claiming my sisters kids"....yea, I'm not too into signing my name to that return.
  That happens to the tune of about $16,000,000,000 a year.
  Check out Mo Money Taxes from a few years ago.
  Yes. This is what it looks like the liberty tax franchisee of the year was doin.

• Again you are an idiot. Maybe you don't realize in poor communities around the US most people don't have have a bank account. Last time I checked you are not required to have one by law. Second, last time I checked there are tons of business that don't require a business license. There are no laws that I am aware of that require you to have a business card. My point is that you seem to have created you own laws out of hatred of poor people getting the EIC.

  Again, what if someone cleans houses for a living, gets paid in cash by customers he , is not required to have a business license. Would you tell this person they should not report the income they have been paid? If they report it and are qualified for the EIC, you would tell them they better not claim that credit because that would be a fraudulent return?

  If the US Congress wants to make the EIC available only to individuals receiving a W2 or 1099 they should change the law to that, but as of right now it does not state that.

  I will more than welcome the IRS to audit any of my tax returns as I don't do any fraudulent returns. I am a CPA and I don't need to nor would I encourage anyone to do it or allow it in my office. I do plenty of business doing it the right way. Like I said EIC with Schedule Cs are a very small part of my business.

  I think our definition of fraud is where we differ. In your world unless you have a 1099, a business license or business card you are committing fraud claiming the EIC. I think you just turned away business because you don't like these people getting the earned income credit because of your personal views of them. Again I know your type.

• You may want to check whether you are logged on as Franchizee, Bill, Admin or Greg since you are confusing what you wrote on each one and are probably the same person. Again, you are not worth responding too but today I could not help myself.

  She was suspected of fraud and before it went any further both party agreed to separate from each other. If she was was stopped by the authorities from preparing tax returns and charged with fraud, please show me where those facts are coming from. That is a 100% lie that you have come up with yourself.

  Again, i could care less about her or you. My business is run the proper way and I am successful. She is just one of 2000 franchisees. Good night sick of wasting time with you.

• Barilla,
  I think you might have a problem with comprehension.
  If you are saying that every single person that comes it on your office and states they made x amount of dollars that happens to hit high eitc range and they don't have any expenses and it's all cash and you just put that down and claim the eitc you are not doing the return properly per irs due diligence requirements. Nobody said anything remotely close to what you are claiming they said.
  Franchisee is following irs requirements for tax preparers to perform due diligence for eitc claims. It is required by IRS to ask the questions and document. If a client can not sufficiently provide documentation of income a preparer following IRS rules can not sign and file that tax return. Period.
  If you file returns without that documentation you are breaking the law and your EFIN and PTIN are at risk. Period.
  I'm not sure what any of this has to do with Muslims and Fox News. It's interesting that you brought that up in a discussion of liberty tax turning in results showing fewer tax returns prepared. The franchisee of the year being shut down and an area developer trying to murder a baby. But hey, feel free to try to steer the conversation from these facts.
  As well as being interested in the tax industry, I'm also interested in media and religion issues in our society and how they shape our perceptions of others. I guess I did learn a little something when news media and religion are randomly introduced Into a totally unrelated conversation.
  Anyway, be careful out there Barrilla. Based an what you are saying it seems you might not be fulfilling your obligations to perform proper due diligence when filing an eitc credit for a cash based business. At the least, if your client is audited and can not substantiate their income the eitc will need to be paid back and that can be a significant burden to a lower income client