The Progressive Accountant - Tax (1550)

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Tax 1537

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

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IRS Says Virtual Currency Is Property

bitcoinThe Internal Revenue Service has taken the position that virtual currency, such as bitcoin, is property. An IRS notice said that virtual currency, which is not recognized as legal tender anywhere, is subject to general rules for property transactions for federal tax purposes.

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Liberty Tax Backer Cashes Out Big

Gary Golding, Edison VenturesEdison Ventures, one of the investors in JTH Holding, has sold its interest in JTH, parent company of Liberty Tax Service. The firm said it had invested $3.3 million in Liberty in July 2012 and its proceeds of $45 million were just under 14 times the original investment.

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Queens Tax Preparer Indicted

dojTax preparer Williesteina Jacobs has been indicted for 27 counts that allege she aided in the preparation of false returns. Jacobs operated International Professional Business Services, which was located in South Richmond Hill, N.Y., and Jamaica, N.Y., both in the New York City borough of Queens.

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Thinking About a Business Valuation Practice

The practice of conducting a business valuation is a mix between art and science. There are standards that guide the professional appraiser, such as the Statement on Standards for Valuation Services (SSVS) published by the AICPA and the Uniform Standards of Professional Appraisal Practice published by the American Society of Appraisers.

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Florida Tax Preparer Barred

justiceA Plantation, Fla., tax preparer has been barred from preparing federal tax returns for others. The Department of Justice said that Keisha Stewart cost the government as much as $1.6 million for tax years 2010, 2011 and 2012.

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Latest Tax Season Results: More of Same

irsThe profile of this year’s tax return has settled into a pattern. Self-prepared returns are leading the way to slight growth in the total number filed while those from tax professionals lag the 2013 season. That is the general picture for statistics released this week by the Internal Revenue Service for the season through March 14.

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Detroit Preparer Guilty on 10 Counts

dojA Detroit, Mich.-based tax preparer, Matthew Bender, has been convicted of one county of obstructing the Internal Revenue Service and of nine counts of aiding and assisting in the preparation of false federal income tax returns. Bender failed to report more than $500,000 in fees he earned for preparing at least 3,000 returns between 2006 and 2011.

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Second Brother Draws Preparer Ban

dojAn Acworth, Ga.-area tax preparer, whose brother has already been kicked out of the business, has agreed to stop preparing tax returns for others. Andrew R. Heath agreed this month to a civil injunction order barring from the business as brother Larry J. Heath had done earlier. The two were alleged to have cost the United States more than $108 million in lost tax revenue.

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Financial Products Help Liberty Results

John Hewitt, Liberty Tax ServiceRevenue from financial products turned sharply upward in the early part of tax season, JTH Holding, parent of Liberty Tax Service, said in reporting its financial results for third quarter ended January 31. JTH said net income rose about almost two and a half times while revenue was up 8.3 percent over last year's corresponding period.

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DIY Returns Up, Pro-prepared Off

IRSDo-it-yourself taxpayers continued to feed the growth in the number of tax returns for the current tax season. However, the market is catching up with the backlog created by the January 31 site and the total number of returns filed through March 7 is only one-tenth of a percent ahead of the totals for 2013 through March 8.

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