LIBERTY TAX SERVICE Franchise Complaints

5,730 thoughts on “LIBERTY TAX SERVICE Franchise Complaints”

• Franchises target people who are risk aversive. They appeal to your desire to work for yourself, be independent, and yet have the security of a job. They appeal to your needs to get you to sign the contract. Unlike the SEC which requires a stock prospective to be factual, the FCC allows franchisers to voluntarily disclose franchisee performance and if they do disclose this information they can cherry pick which matrix to use. i.e. the top ten franchisees.

  At the same time I was opening my Liberty office in 2006 I meet another tax accountant who was starting out in the same area. He told me he looked at Liberty but he just couldn’t see committing himself to an idea where they told you what to do and you had to pay them money to do it. At the time I was confident things would work out. It’s now 2015 and I’m working for someone else and he is in his ninth tax season as an independent.

  There is nothing in life that is a sure thing. Be honest in your evaluation of yourself and be skeptical of any thing that looks like a sure bet. If Liberty was such a sure bet why would the company sell any franchise?

  Buyer Beware!!!

• Up until recently, franchises had a great reputation for helping people make a good living on the outside. On the inside of the nuts and bolts of not so sure if that was ever the case.

  As time has gone on, Franchisor’s have been changing the goal and have a “living” contract or as LTS has an “operations manual” which can be changed at a whim.

  Remember with LTS, you sign a 5 year lease for a territory, but you can’t make a full decision until you go to a training session and receive the operations manual.
  They have it chocked full of rules and regulations

  We didn’t follow the operations manual especially, if it was something we should of seen prior to signing the 5 year lease on the territory. I would tell them, that was not in the lease at time of signing. Of course I paid my royalties on time etc.

  People when looking remember nothing is as it seems. LTS is one of these situations.

• We need to keep this LTS forum front & center up at the top of this column as often as possible.

  When I joined as an LTS franchisee for one 5 year term, it was very early in the company’s infancy. They made sure a contract was signed BEFORE an operations manual was handed out, training sessions were given or ANY info. (that was all bullshit) was given out. In retrospect, THEY carried all the cards, where it really should be the other way around. There was no “Unhappy Franchisee” website, there was no “history” of all the lawsuits filed by Liberty against franchisees for every Tom, Dick & Harry reason………there was no one to say anything negative!

  NOW there is so much truth, dirt and legal crap about this company, NO ONE in their right mind should hand over their heard earned money for this piece of crap “territory”.

  With all the negative dirt on this company, it’s a wonder that anyone would still join this terrorist organization.

  It took many years of stress, but I am SO much better off without this Nazi company and it’s Nazi leaders. I lost so much $$$, but I still come on here to warn others of the pitfalls of this company. It stinks. (That’s putting it mildly) There aren’t enough colorful adjectives to describe this awful, awful, awful experience.

  Please to all considering joining this company for next Tax season—DON’T! back away and go elsewhere. As I’ve said before, you will be so relieved to know you’ve dodged a huge bullet.

  Still patiently waiting for JTH and his cronies to see the inside of a padded jail cell. Can’t wait!!! :)

• SanFranDan: I agree that we have to keep this forum front and center. Unfortunately I don’t see anyone going to jail at JTH for how they market and run their company. The whole franchise system and the laws that govern it are tilted in favor of the franchisor. All we can do is continue to educate the public and push our public officials to change the FCC regulation of franchisors. Specifically section 19 which should require all franchisors to disclose the average performance of franchisee’s by age of store.

  I’m so glad that this company went public because unlike when selling a franchise when your sell stock you must disclose actual information and there is a regulator agency to oversee that. Today Liberty issued a press release that disclosed that sales through February 13 are actual off by 1/10th of a percent. This might not sound like much but it comes during the peak of the season. Of course being good spin doctors they came out with a new term “permanent” locations which they say increase by 101 stores. However, seasonal offices declined by 224. Another new term this year is processing centers which increased by 17.

  The reality is that the “Fastest Growing Tax Prep Business” is on the verge of having a second straight year of declining sales and is now starting to lose market share.

• Good points Bill, SanFranDan –

  When looking at signing a 5 year LEASE of a “manufactured” territory remember the following: (I feel like a broken record, but these can’t be stated every couple of weeks, incase of new people looking at LTS as a purchase)

  1. All territories are “manufactured” by either LTS or by the first person to buy into a territory.

  2. All good territories are taken!!! All good territories are taken!!! All profitable territories are taken!!!

  3. As NCHillBilly has stated in the past, the operations manual is a living breathing EVER changing contract. When looking at a territory and the “manufactured” crapola that is sent to a prospect, you are only aloud to see a tip of the iceberg. The FCC disclosure statement is “manufactured” and not credible. Even if it is approved by SEC or whomever, it will not be the truth of the territory you are looking to purchase. It only gives the info the “good and profitable” territories already in existence.

  4. Did I mention “ALL GOOD AND PROFITABLE TERRITORIES HAVE BEEN PURCHASED.”

  5. The remaining territories are used to churn and burn from one franchisee to another. They pay additional money to John John and his henchmen.

  6. Keep in mind, when purchasing a territory if it is too good to be true, IT IS!

  6. As Mike always states…Buyer Beware!

• I agree guys, keep posting to this site to warn prospective buyers of the problems they will face if they buy in.

  Right now many of us are busy doing tax returns. Just think, if Liberty would have been reasonable with us, then they would be growing not shrinking.

  What happened to all that extra business because of the Affordable Care Act? Just another pipe dream to sucker more to buy territories.

  We should pick-up the pace on our postings after tax season. Bill will have more financial reporting information for us. Yes Bill, their going public helps the curtain to be pulled from there lack of success.

• @Bill: What do you think are those “processing centers”? A backroom full of taxpros?

• ^^Franchizee:

  6) It’s BILL that always states, “Buyer Beware”!!! :)
  And it is sooooooo true!

  I am not a (current) numbers person, so when people like Greg (a million years ago) and Bill and NC Hillbilly actually address current numbers, it makes my heart sing. Love it because that shows real ‘negative’ growth.

  Isn’t it true that JTH made this into a stock company so that they couldn’t shut the company down??? Only go after their leaders??? Who is checking into his “bank” he purchased on some island somewhere? There is so much dirt on just this one person!!! And he has the nerve the write a book for more money? He is SCUM and NO one should be giving him a dime of their money any longer. For shame. It’s time the tables are turned and he gets a dose of the same cruel medicine he’s inflicted on to others for decades.

• Can anyone confirm whether this man is Liberty Tax franchisee Bryan Patrice from Long Island, NY who has stores all over the country?

  http://www.cbs12.com/news/top-stories/stories/vid_23723.shtml

  We were told this by an anonymous source. This Bryan Patrice has been charged with attempted murder of a baby (!) Pretty horrific story.

• Sure looks like him on his fb, interesting, if it is him wonder what screwitt will say?

• ^^I was just in West Palm Beach a few weeks ago.

  ADMIN:

  It is a horrific story and I’m not trying to make light of the situation at all. But after what I went through with that company, I mean STRESS of incredible proportions, I don’t doubt that if the company had anything to do with his state of mind, it does explain how people CAN go off the deep end.

  They squeezed me so badly I am still feeling the repercussions many, many years later. That is why I come on to warn others about this company. They are not for the faint of heart at all. I’m not going to speculate on how this guy got to this point or whether the company had anything to do with his state of mind. But I can say I’m not surprised if the company had some sort of effect on his psyche because they are that evil.

  Not good publicity for LTS…..oh well :)

• A while back we reported on a celebrated Stratus Building Solutions franchise salesman charged with killing his girlfriend and their two sons:

  http://www.unhappyfranchisee.com/shazer-fernando-limas-killer-franchise-salesman-stratus-building-solutions/

  He was the top salesman of a dubious franchise opportunity and had been sued for his allegedly aggressive and unethical tactics. It occured to us that the same personality traits/disorders that led him to being a top closer – narcissism, lack of remorse or empathy, sociopathic tendencies – were potentially the same traits that led to this tragedy. Not saying that all franchise salespeople… well, you get it.

• I think its about over, at least with the stock aspects of the company. Everything has been predicated on “fastest growing” and “bigger than H&R Block by 2015, or 2020 etc etc.”
  There are no doubt successful franchisees with Liberty but the average office is not successful. Heck, Barrilla does half of LIbertys returns himself.
  The problem is growth is over or turned off to a trickle. Even with the new chain of stores for the latino market, the numbers are down. Im sure that the books are cooked as the real size of the loss of clients. No More can they say growing. Anyone who entertains the slightest belief that Liberty will even sniff 50% of Blocks volume is certifiable.
  Stock is down 20% in February. That’s hot times for the tax industry. I think the 5% off before the big drop was the folks in the know trying to dump as much as they could before the announcement.
  The continual addition of new stores had in the past increased market share by gain a hundred or so returns in each of those but obviously that’s not enough to be profitable for the franchisee as many of those new stores closed. Liberty had gained market share by putting the expense on unsuspecting new franchisees. The expense associated with that increase in market share was far in excess of the revenue generated by that increase and the franchisee ultimately suffered that burden.
  What Im waiting to hear is John Barrilla, who is so fond of pointing out that poor performance is all the fault of the individual to come and shine those words on the Liberty “system”
  Id say if he is touting that Liberty is going to be bigger than Block by 2020 and in 2015 first peak they lost clients there would be no choice but to claim failure as the growth has turned into loss taking away 20% of the time needed to increase returns 10 fold to reach block. (yes, its total clients served by each company figures)
  It will be interesting to see how it pans out.
  At any rate, another public offering of the stock……….well, I wont buy any if the small company is shrinking.

• I was sent these links and it sure looks like the Liberty franchisee but I don’t want to say for sure.

  https://www.linkedin.com/in/bryanpatrice
  https://www.facebook.com/bryan.patrice
  http://www.ptindirectory.com/tax-preparers/new-york/freeport-ny/300661/liberty-tax-service/bryan-g-patrice-ea
  https://www.google.com/search?q=bryan+patrice&tbm=isch

  Bizarre and sad story for sure

• So I have fee intercept coming out and have a ZERO balance owed to Liberty. I have called and emailed with all AD’s, etc. I was told today that it is in our contract that they can fee intercept based on future AR balances. Anyone else have this problem? Happening to them?? They said they are doing this across the board on all zees. Is it in our contract?

• 100% THAT IS BRYAN PATRICE

• It’s him
  Accounting Today has a write up about it. He was apparently an AD as well as a franchisee

• It would not be the first area devoloper thatis messed up. I wonder if he goes by barilla?

• 

  Bryan Patrice
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• Sad to say… this is what it says in the franchise agreement

  “k. Automatic Payment Transfer. All of the tax preparation, transmitter, software, and electronic filing fees, and any rebates that you receive from Financial Products or customers who purchase Financial Products, shall initially be paid to Liberty. The term“Financial Products” as used in this Agreement means refund-based loan programs and/or a means for customers to obtain a refund using electronic deposit services that Liberty, or a company associated with Liberty, may offer to you. Liberty will remit any remaining balance to you from the above described fees and rebates after deducting monies you owe to Liberty , and/or Hispanic Tax if applicable, and deducting monies to hold for application to upcoming amounts due to Liberty and/or Hispanic Tax.”

  Unfortunately the last sentence in this contract gives them the right to withhold funds for future debt you might incur.

• Let’s get back to the good stuff!! LIBERTY IS GOING DOWN!!!!

  U.S. Tax Season 2015 Results Through February 13, 2015

  U.S. Tax Returns Processed1 (‘000s) CYTD 2/13/15 CYTD 2/14/14 Percent Change
  Offices 909 910 -0.1 %
  Online 63 73 -13.7 %
  Total Tax Returns Processed 972 983 -1.2 %

  U.S. Offices2 Change
  Permanent 3,764 3,663 101
  Seasonal 262 486 (224 )
  Processing Centers 43 26 17
  Total U.S. Offices 4,069 4,175 (106 )

  OFFICES DOWN TAX RETURNS DOWN, HEWITT MUST BE SOOOOO PISSED, I WILL BET THE FRANCHISEES AREN’T FOLLOWING THE SYSTEM!!!!! HAHAHAHAHAAHAH

• Top Zee Goes Down Vanessa Dickens stores absorbed by Jth (Liberty Corp Stores) she had the top store through Feb 13th. How many Liberty Stores that do over 1000 returns live off filing fraud returns? Corporate turns a blind eye as long as the revenue keeps rolling in. They will not take back a franchise unless acted upon by a 3rd Party. I.e. irs investigation, banking partner issue, etc. it helps to have fraud returns because it lines Johns pocket/ Ads Pocket and helps him sell more stores to unsuspecting suckers like you and me that Can’t get out because we’d lose our investment. So we keep going churning out returns hoping for an exit strategy to pop out it front of us.

• Wow
  That’s pretty impressive. An area developer and multi territory franchisee tries to murder a baby and the franchisee of the year having her stores taken back by the company and reported loss of clients all in the same week! Wow!

• It’s very concerning about Ms.DIckens. Guess would be growing too fast and could’nt keep controls in place. By the way, don’t consider myself a sucker and don’t do fraudulent returns. Update if you find out what happened to Ms.Dickens.

• John Hewitt must know that the end of liberty is beginning! Hip hip hurray!

• Regarding Vanessa Dickens, she may be the zee in Maryland and started in 2012 and was regarded being a great Zee, just weeks into the tax season 2013. She was on several calls and we heralded by home office as the greatest zee since previous one. As usual, people go from Hero to Zero in a nano second in this company.

  She just started and we experienced people were suppose to do what she does, however she was in a high EIC area – some big city in Maryland. It was painful to listen to the garbage. Absolutely stupid listen to someone first tax season with LTS and she was an expert.

• Ms. Dickens trained her employees on Sch C fraud like Annie get your gun Fuller, Johns favourite Top Rising star and filed hundreds of fraudlent Sch C Eic fraud for homeless people. She d file them for $700 to $800 bucks each.

  Liberty should reject all fees collected from fraud return clients and give that money back to the IRS. Problem is they would owe back 10s of millions of dollars. John wont do that, Ads wont do that. Turn a Blind eye John youve been doing it for Decades.

  What percentage of Liberty Revenue is derived off of Sch C Eic Fraud? Ask Dolesky? Castellini, Bablu, Perry, Baldeep, Nazim, Rivera, Quantum and anyone with offices in extreme poverty neighborhoods they know. They profit millions off it. But John and high level Ads profit more through 12% derived off fictitious fraudulent and inaccurate numbers.

  Don’t waste your money with these clowns unless you are a clown yourself (Liberty Loves clowns look at our wavers!) If you are honest and Hard working you dont need them. If you are a scammer yes Liberty will Finance you and help you Grow.

• ^^Concerned zee:

  Your post is accurate. It goes even further than LTS turning a blind eye to fraud returns. How about LTS having something to do with the fraud returns in the first place and maybe, just maybe having something to do with calling the IRS on their own franchisees, hmmmmmm?

• I had heard Top Gun Zee, Vanessa, on a conference call the first week in January and I got sick at my stomach, as she was explaining her People 2 People (P2P) marketing approach, going door to door in the neighborhoods. She was even boasting about the number of returns that she had already completed in the first week of January.

  This should have set off red flags for Liberty Corporate. Instead the hostess was encouraging everyone listing to the conference call to follow what this Top Gun Zee was doing and the great results she had achieved. This call quickly reminded me of another former Top Gun Zee, Annie Fuller, on the same tactics that she used until being caught and shutdown.

  This is just a another reminder that Liberty has no true and real national marketing plan. Individuals like Vanessa are being very creative on getting customers mostly using illegal practices. Instead of Liberty investigating what Vanessa was doing, instead they promoted what she doing nationally using conference calls.

  Vanessa’s office was located in a very low income area in Baltimore Maryland where individuals are use to and expects government handouts. The clients were mostly likely mislead and promised just sign a few papers and expect a check in 3 weeks at her office.

  It was the State Comptroller of Maryland that shut down Vanessa’s office and prevented all Liberty offices in Baltimore City from doing any type of bank products for a period of time. This affected all Liberty Offices in Baltimore Maryland and the immediate area from doing bank products, basically bringing Liberty in the Baltimore area to its knees..

  Liberty Corporate’s money is in bank products. Since JTH has its own bank they make $39.95 for every refund transfer. Read Liberty’s financial statement and you will see the money is in financial products not royalties.

  John Hewitt is all about numbers at any cost and he does not care who is the sacrificial lamb.

  Buyers beware stay far-far away from this company.

• So who is regulating this mess? Good for Maryland that they caught this. We the taxpayer keep funding these EIC refunds or we have to borrow money to do so. I believe the whole of our country is doomed for financial failure because the money is flowing freely thru various government departments to these fraudsters. It is difficult for the government agencies to keep up with all of this.

  Shame on us for just letting it happen. SHAME! SHAME! SHAME!

  Liberty is turning a blind eye to this! How can you promote someone that does so many fraudulent returns? I know they audit franchisees for high numbers of returns with certain types of tax credits. Did they think it normal there were so many Schedule C business people filing so early in the tax season, for one Zee? No, that is why she was considered – “special” and an example for all. Promoting fraud? Are you doing so Liberty?

  They just want there 19% and we the taxpayer are giving it to them, indirectly through the bogus returns.

  IRS/FEDS/STATES – SHUT THEM DOWN AND INVESTIGAGE!

• Maybe my last word – Investigage was a Freudian slip. We need to look into this company and be engaged and outraged as taxpayers to these types of fraud.

• All of the majors have some of these. Block, Jackson Hewitt, etc. It’s gotta be more than Schedule C returns for Maryland to stop the bank products. Don;t forget most of these are done by those using online software. It can only be stopped by ending or cutting back the EIC.

• The reality is circular 230 only addresses the preparer and or the owners of the firm or tax prep company who prepares the returns. The way the laws are written a franchisees are considered independent business operators that pay a franchisor a fee to operate under their name and business model. Despite the amount of control franchisors exercise over their franchisees, the franchisor is not considered the owner of the business and is not held accountable for any misdeeds of the franchise.

• So, Liberty is free from any culpability because a few renegade Zee’s go off the reservation. My point is; what kind of internal controls are in place by the Franchisor to stop this?

  For Concerned Zee; would it not be a great exit strategy if Liberty was shutdown and you keep your clients and go it alone? I know this is unrealistic, but one could dream.

  The pressure of making a profit for yourself, after you give back 19% of your hard earned money, is a great pressure on the Zee.

  Again, Liberty bears none of the burden, even when fraud is committed. They will just resell these territories and probably advertise what a success they are, oh so many clients they have (ha! ha!)

• Remember, they promoted this gal. Also, all returns flow thru them to the IRS.

  If they are so called tax experts, how do they not spot a trend? SanFranDan may be correct, they (Liberty) may turn them (the fraudulent Zee) in when the Zee goes bonkers with fraudulent returns. Liberty looks like the good guy and they get back a territory to resell. What a great deal!

  I really feel for the current Zees. Successful or not, giving them 19% of your revenue is just so tough to stomach.

  If any potential investors are still thinking about buying into this mess, think again! Do not do it!

• Sad but true: Liberty monitors everything that the franchisee does. So it can see these trends. However, the franchise laws don’t hold the franchisor accountable for the actions of the franchisee so Liberty can just ignore the trends. Based on past post we know the IRS tried and may still be trying to link Liberty through its training and marketing methods with encouraging these fraudulent behavior.

• Guest….you are absolutely right in that all of the majors have franchisees that break the rules. The problem is that only one of the national chains; liberty, makes the fraudster the national franchisee of the year after 2 years in business and gets them to preach the tactics to all of the other franchisees.
  That’s the problem. Encouraging and rewarding the behavior.
  If Hewitt encourages and rewards this type of behavior to gain market share what does it say about other business practices? What does it say about how he might treat franchisees if the rules don’t really matter? In his own backyard, an hour or so from va beach he let a new franchisee do this stuff? Then kicked her to the curb when she was caught?
  Run, run far and fast!

• Greg, your assumption is that the majority of the returns prepared in a successful store are fraudulent. I’d bet thats not the case. There are millions of filers who lawfully qualify for the EIC and they need the money to support both their families and Walmart.
  Trouble starts with greed sets in. Trouble also starts when owners lose control over their stores because they become too big.

• guest; I think you misread Greg’s posting. He can explain, if he wants to.

  Thanks bill, love your insights.

  Facts are facts; Liberty does not care for the franchisee, the customer, or the public at large. All about making money for the owners. Stay away!

• 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

• Barilla – You are totally wrong on most everything, because you are a hot head.

  I am very suspect of you flying off the handle because of stating the obvious that goes on in very large offices. It happens everyday and now they have moved to Turbo Tax, Tax act etc.

  Obviously you have not taken any classes or updated what the Federal government is looking for in laundering money. Take the due diligence class on line with the IRS. Get certified by the IRS. If you are a CPA, you are the worst CPA out there. You are encouraging tax fraud.

  This has nothing to do about poor people, but people stealing tax money from the taxpayers and people who make sure they fit in at the minimum level of income to receive the highest EIC tax credit with children.

  Also, Barilla – Self employment tax CAN and IS paid for by EIC everyday. Do a tax return, and look at the 1040 and read it. It will amaze you how the credits and EIC can pay for Self employment tax and one can STILL receive a REFUND! Shazam!!

  Now, about Fox News, whatever. I haven’t had cable for the past 16 years, so you don’t know what you are talking about. However, it takes one to know one!