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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ProSeries Cloud? Not Yet, But

CeCe Morten, IntuitIntuit does not currently see the need for a cloud version of its ProSeries tax preparation package. But if the need does arise, any Internet version would be based on the Lacerte tax engine, says CeCe Morken, EVP of ProTax at the Mountain View, Calif.-based tax software company.

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DIY Tax Return Filings Grow

irsThe do-it-yourself tax filing market continues to grow. Statistics from the Internal Revenue Service for the tax season through February 19, shows the number of self-prepared efiled returns up by 3.1 percent over last year's season through February 20. Meanwhile, efiled returns prepared by paid professionals remains down from a year ago.

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Tax Filing Scams Rise Dramatically

John Koskinen, Internal Revenue Service The Internal Revenue Service says it has seen a 400 percent surge in phishing and malware incidents this tax season. And the IRS said this week it has observed fraudsters are more frequently asking for personal tax information, which could be used to help file false tax returns.

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H&R Block Opens Advisor Stores

Meg Sutton, Block AdvisorsH&R Block has opened a new chain of stores, Block Advisors, to serve the needs of business customers and those with more complex returns. Designed to operate year-round, the stores are likely to be expanded and at the moment are all company owned.

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Preparer, Art Appraiser Bars Sought

dojThe Justice Department is seeking to bar a Texas tax preparer and an art appraiser who were convicted of a scam involving inflated values of African tribal art for write-offs for charitable donations. The Department of Justice has asked a federal district court in Houston, Texas, to bar John E. Carter, previously sentenced to prison for tax fraud, and Sulayman Mamadou Jarra from preparing federal tax returns for others.

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Consumers and ID Theft—Who Us?

IDT911A majority of taxpayers do not fear tax filing identity theft. A survey conducted recently by IDT1911found 63 percent of the 1,500 consumers are not worried about having their identities stolen during tax season while 52 percent say they do not trust or are not sure if they trust, online tax services.

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TaxAct Revs Up 13 Percent in 2015

Bill Ruckelshaus, BlucoraTaxAct, the tax preparation business of Blucora, had a 13-percent rise in revenue for 2015. That came as the company's proforma revenue was up 7 percent over 2014 with the company's purchase of HD Vest on December 31, Blucora said during a recent earnings webcast.

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Liberty Tax Responds to Maryland Action

Jim Wheaton, Liberty Tax Service Liberty Tax Service says it is cooperating with Maryland, which has stopped accepting electronically filed state tax returns from 23 Liberty offices in that state. Maryland Comptroller Peter Franchot took the action because of what it said was a high level of suspicious returns being filed from those offices. The action does not affect electronically filed federal returns or any returns filed on paper.

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Nation Tax Services Ordered Closed

NationTax Services, which operates stores in four Southern states, has been ordered to close. A federal court in Orlando, Fla., has told owner Jason Stinson to shutter his stores immediately, finding that they had engaged in a pattern of preparing and filing false tax returns.

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Former LBS Franchisee Barred

LBSA Lake Worth, Fla., man who was once part of the former LBS tax chain accused of systematically preparing phony returns, has been barred from preparing federal tax returns. Wilfrid Antoine agreed to a preliminary injunction to shutter his seven stores in Florida and to disgorge $100,000 after being accused of continuing the same business practices followed by LBS in targeting low-income customers.

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