Tax (1572)

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

IRS Adds Day To File

David Kautter, Internal Revenue Service The Internal Revenue Service has given taxpayers until midnight April 18 to file taxes. The IRS took the action because of computer outages on Tuesday, morning, April 17, but said it did not impact many taxpayers. Taxpayers do not need to take any action to receive the extension.

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IRS, eServices Down

The Internal Revenue Service has experienced computer outages today. Web pages for eServices and DirectPay with Bank Account remained down in the late afternoon.

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Tax Season Results Soften

irsWith the filing deadline this week, the filing gains for 2018 tax season fell back. For the reporting period ended April 6, the number of returns received and processed were up .1 percent from the period ended April 7, 2017. For the prior reporting period, those two categories were up .5 percent and .3 percent from the 2017 results.

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Prominent Florida CPA Faces Tax Charges

 Darryl Sharpton, The Sharpton GroupA prominent Florida CPA has been indicated on changes of tax evasion, failing to file tax returns and filing to turn payroll taxes over to the Internal Revenue Service. Miami-based accountant  Darryl Sharpton is accused of filing personal income tax returns from 200 through 2008 and in 2010 but failing to pay taxes.

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IRS, Tea Party Settlement Proposed

NorCal Tea Party PatriotsA cash settlement of $3.5 million has been proposed in a class action suit brought by the Tea Party against the Internal Revenue Service. The litigation by the NorCal Tea Party Patriots was brought against the agency alleging the IRS discriminated and retaliated against certain group when they applied for tax-exempt status.

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Maryland Blocks 20 Preparers

Peter Franchot, Maryland ComptrollerThe State of Maryland has stopped accepting tax returns from 20 preparers in the last week. That brings the total to 74 who have submitted what the state says is a high volume of suspicious returns.

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Refunds Continue to Lag 2017

IRSThe number of refunds and amount of dollars issued to taxpayers through the tax season through March 30 remained down from totals through March 31, 2017.  Efiles by paid preparers also remained behind the 2017 season for the compared periods. But total returns received and processed have now shown an increase over a year ago for three consecutive weekly reports.

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Maryland Blocked 54 Preparers to Date

Peter Franchot, Maryland ComptrollerThe state of Maryland has stopped processing electronic tax returns for 54 preparers during the current tax season. Comptroller Peter Franchot said late last month his office has blocked returns from 20 more tax preparers at 24 locations in Maryland, Virginia, Texas and California, in addition to 34 previously flagged.

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Feds Sue Three Florida Liberty Operators

Steven M. Doletzky, Liberty Tax FranchiseeThe United States has sued three men who operate Liberty Tax Service stores in stores recruited homeless individuals, promising to get them welfare, and the then filing fraudulent tax returns in their names. The Justice Department seeks to shut down as many as 15 stores operated  by the three and to recoup fees ranging from $650,000 to $1 million.

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IRS Releases Guidance for Issues Under New Law

irsThe Internal Revenue Service has issued guidance for a variety of issues stemming from the Tax Cuts and Jobs Act. These issues include transition tax on foreign earnings, business interest expense limitations and on withholding on the transfer of partnership interest by foreign persons.  

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