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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Tax Season Filings Move Up

Tax montage armyThe number of returns filed with the Internal Revenue System for the season through April 12 increased from the totals for the year-earlier season through April 13, 2018. It was the first time that returns for this year’s tax season exceeded totals for the corresponding period in 2018.

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eFiles Top 2018 Totals

Efiled returns for the tx season through April 5 reached 96,844,000, a 1-percent increase from 95,899,000 for the period through April 6, 2018. It was the first time during the current season efiles beat 2018 totals, all on the growth in self-prepared returns. 

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eFile Receipts Even with Last Season

Tax montage armyThe gap between the rate of filing for 2018 and 2019 continued to close with the statistical report for the tax season through March 29. With this report, the number of efiled receipts reported to date, 87,288,000, was virtual unchanged from 87,328,000 for the season through March 30, 2018.

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Returns Filed Edge Closer to Last Year

The results of return filing for the tax season through March 22 resumed closing the gap on last year’s season through March 23, 2018. While the average return continue to change little, the number of returns received gained on the prior season.

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IRS Revises EIN Application Process

The Internal Revenue Service has revised the process for applying for an Employer Identification Number. Starting May 13, only individuals with tax identification numbers can request an EIN as the responsible party on the application.

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IRS Expands Underpayment Relief

Mobile apps artThe Internal Revenue Service is lowering the threshold for taxpayers who wish to qualify for relief from penalties on 2018 federal income tax withholding and estimated tax payments. The agency reduced the threshold for penalties on underpayment to 80 percent of tax liabilities. 

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Philadelphia Preparers Charged with ID Theft

Two Philadelphia, Pa., tax preparers have been accused of buying and selling personal identifying information of children to claim as dependents on tax returns. Nvahbulai Quisiah and Gofin Kosia, both 43 years old, each face six counts of aggravated identity theft. They have also each been charged on 17 counts of aiding and assisting in the preparation and filing of a false tax return and six counts of wire fraud.

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Refunds and Returns Flatten Out

The average refund issued by the Internal Revenue Service through March 15 dropped by .1 percent over the comparable period ended March 16, 2018. Since the prior report had refunds up by the same percentage over the prior tax season, the pace of change for refunds appears to have plateaued.

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IRS Warns of Fake Advocate Calls

The Internal Revenue Service has reported scammers are making calls impersonating the the Taxpayer Advocate Service. The agency said this week the latest variation of the scam spoofs the telephone numbers of the IRS Taxpayer Advocate Service offices in Houston, Texas, or Brooklyn, N.Y.

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Average Refund Rises Slightly

The average refund rose slightly through March 8, continuing a steady increase regisered in each weekly report issued by the Internal Revenue Service this year. The average refund was $3,008, an increase of .1 percent, from $3,004 from the period through March 9, 2018.

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