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July 20, 2010
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U.S. Government Sues Jackson Hewitt Tax Preparation Franchises, Alleging Pervasive Fraud

The United States has filed civil injunction suits against five corporations that operate Jackson Hewitt tax preparation franchises, as well as 24 individuals who manage or work at the franchises, the Justice Department and the Internal Revenue Service (IRS) announced today. According to the four lawsuits—filed in federal courts in Chicago, Atlanta, Detroit and Raleigh, N.C.—the corporations operate under franchise agreements with Jackson Hewitt Tax Services Inc. of Parsippany, N.J., the nation’s second largest tax preparation firm.

The suits allege that one of the individual defendants, Farrukh Sohail of Atlanta, Ga., wholly or partly owns each of the five corporations, which prepared and filed over 105,000 federal income tax returns last year. The five corporations allegedly operate more than 125 Jackson Hewitt retail tax preparation stores in the Chicago, Atlanta, Detroit and Raleigh-Durham, N.C. areas.

According to the government complaint, Sohail and other defendants “created and fostered a business environment” at the Jackson Hewitt franchises “in which fraudulent tax return preparation is encouraged and flourishes.” Examples of fraud alleged in the lawsuits include filing false returns claiming refunds based on phony W-2 forms; using fabricated businesses and business expenses on returns to claim bogus deductions; claiming fuel tax credits in absurd amounts for customers clearly not entitled to any credits; and massive fraud related to claiming the federal earned income tax credit. Read more at usdoj.gov.

 

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Did You Know?    
 
 
If you have employees, you are responsible for Federal Taxes
If you have employees, you are responsible for several federal, state, and local taxes. As an employer, you must withhold certain taxes from your employees pay checks. Employment taxes include the following. Federal income tax withholding Social Security and Medicare taxes Federal unemployment tax act (FUTA).

 


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News about Taxation cases in Michigan and nationwide:

U.S. Asks Federal Court to Bar Dallas Man from Preparing Tax Returns for Others
The United States has sued a Dallas, Texas, man, seeking to bar him from preparing federal income tax returns for others, the Justice Department an...
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2005 Federal Earned Income Tax Credit
Earned Income Credit Amounts Increase

The maximum amount of income you can earn and still get the credit is higher for 2005 than it is for ...

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Disaster Extension Gives Extra Time for Taxes (Ohioans Affected by Recent Hurricanes Get 45 Extra Days)
September 30, 2004 – UPDATE: Additional Ohio counties – Athens, Meigs, Gallia, Mahoning, and Vinton – have been designated as fede...
Read more >


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Taxation Terms

 


Today's Terms

Federal income tax

Definition:
The federal government levies a tax on personal income. The federal income tax provides for national programs such as defense, foreign affairs, law enforcement, and interest on the national debt.

Family daycare providers

Definition:
A family daycare provider is a person engaged in the business of providing family daycare.

Work Opportunity Credit and Welfare-to-Work Credit

Definition:
The work opportunity credit and the welfare-to-work credit are scheduled to expire for wages paid to individuals who began working for you after 2003.

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Tax Legal Resources

 


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Taxation Hot Topics

 
Topics Related to Taxation Law:
  • Income Tax Cases
  • Recent Estate & Gift Tax Cases
  • Recent Income Tax Cases
  • State Statutes Dealing with Taxation

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Michigan Taxation Attorney

 
If you live in the following cities and need an taxation attorney you should contact our Taxation Attorney as soon as possible:

  • Adrian
  • Ann Arbor
  • Battle Creek
  • Bay City
  • Belleville
  • Canton
  • Clinton Township
  • Dearborn
  • Dearborn Heights
  • Detroit
  • East Lansing
  • Flint
  • Grand Blanc
  • Grand Rapids
  • Hamtramck
  • Highland Park
  • Holland
  • Howell
  • Jackson
  • Lansing
  • Lincoln Park
  • Livonia
  • Macomb
  • Mount Pleasant
  • Muskegon
  • Niles
  • Northville
  • Plymouth
  • Port Huron
  • Redford
  • Rochester
  • Roseville
  • Saginaw
  • Sterling Heights
  • Taylor
  • Traverse City
  • Trenton
  • Troy
  • Warren
  • Westland
  • Wyandotte
  • Ypsilanti
 


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