Tax (1538)

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: Email Phishing Spreads

 John Koskinen, Internal Revenue ServiceTaxing authorities says that a scam aimed at obtaining employee W-2s emails from the corporate world has spread to other sector,s including school districts, tribal organizations and nonprofits. The email-based phishing is also being combined with an older wire transfer scheme.

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Preparer Receives 150-Month Term

irsAn Atlanta, Ga.-based tax preparer has been sentenced to 150 months in prison for filing fraudulent returns that claimed more than $20 million in refunds. Cheryl Singleton, age 29, who owned and operated Advanced Tax Services, used a variety of tools to increase client refunds, along with stealing identities.

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Free Filers Can Use Mobile Devices

 free fileTaxpayers who utilize the Internal Revenue Service's Free File program can now use smart phones and tables to prepare and file federal and state tax returns. The IRS and companies which offer use of their software for free have implemented a design that supports desktops, laptops, mobile phones and tablets.

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Practice Aids Move into Deskbooks

Thomson Reuters is making its Interactive Practice aids are being incorporated into Checkpoint PPC Tax Deskbooks. Practice Aids can be accessed from inside Checkpoint and saved to a Checkpoint folder. They can also be exported.

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IRS Warns of W-2 Phishing Scam

IRSThe Internal Revenue Service is warning of an email in which scammers use corporate officers' names to request W-2 forms and personnal information about employees. The IRS says this is the second time this particular phishing expedition has been seen.

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Tax Season—Land of the Free

IRSTax season kicked off this week with an emphasis on free. This free tax preparation and filing for do-it-yourselfers with simple returns. It also starts with some high-profile advance and loan products, of special interest for those whose tax refunds are being held until mid-February.

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TaxAct, Block App, Offer Pro Connections

John Clendening, BlucoraTaxAct can now connect its software customers with tax professionals. The capability has been added through integration with Taxfyle, a tax and accounting marketplace.  Similarly, H&R Block has introduced TaxEdge, to link users of Everlance and Hudir, which provide tracking and reporting income and expenses for freelancers, with Block preparrs.

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IRS Issues eMail Scam Warning

irsTax agencies are warning professionals about scam emails from people posing as clients soliciting their services. Accounting and tax preparation firms are being solicited nationally in an attempt to collect information for preparing fake returns.

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N.J. Preparer Draws 37-Month Prison Term

A Toms River, N.J.-based tax preparer has been sentenced to 37 months in prison pocketing refunds she sought without her client's permission. Doreen Gentile has also been ordered to pay $1,863,013 in restitution. She also admitted failing to pay taxes for her business from 2006 through 2009.

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IRS: Four of Five Returns to Be eFiled

John Koskinen, Internal Revenue Service The Internal Revenue Service expects four out of five returns submitted during the tax season that kicks off on January 23 to be efiled. The agency also predicts a similar proportion of refunds issued through direct deposit.

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