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 Refunding Preparer Test Fees

irs tv logoThe Internal Revenue Service is scheduled to return millions of dollars in fees paid by those who took the Registered Tax Return Preparer test. The IRS next week plans to mail checks of $116 each paid for the roughly 89,000 tests that were paid for and taken between November 2011 and January 2013. Some preparers took the test more than once.

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Indirect Tax Battle Becomes Global

Scott McFarlane, AvalaraIt is unlikely anyone would call the market for indirect tax products exciting. But in the last few months it has become much more interesting as the outlines of global competition for customers in this arena has started emerging. And it has gotten more interesting because of the amount of money invested in the battle in response to worldwide trends.

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Avalara Offers SALT-in-Box

Patrick Falle, Avalara

Sales-and-use tax vendor Avalara has launched SALT-in-a-box, a web-based package of tools, resources and services. The program is designed to help accountants and bookkeepers serve clients that face sales tax issues. Among these is a Nexus determination tool, which the Bainbridge Island, Wash.-based vendor says can bet used by any bookkeeper or accountant to determine if their client has established nexus in a jurisdiction.

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Texas Preparer Draws 30-Month Sentence

TexasMichelle A. Morin, a tax preparer based in Laredo, Texas, has been sentenced to 30 months in prison for filing phony tax returns. Morin also was ordered to undergo a year of supervised release and pay $20,146 in restitution to the Internal Revenue Service. She was accused of causing the government to lose more than $228,000 in taxes through the operation of her Discount Tax Service.

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Jackson Hewitt: Good Tax Season

Jackson HewittJçackson Hewitt was the only one of three national tax store chains reporting significant growth in the number of returns prepared. The Parsippany, N.J.-based franchisor said total returns were up by nearly 3 percent, although the same store assisted returns were up by only .5 percent. And all totals reported indicate Intuit's TurboTax won the recent consumer tax season in a rout.

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Small Firm Services Gets New Site

CCH Small Firm Services has established a new website for the users of its two professional tax preparation software packages. The new site is replacing the atxinc.com for the ATX site and taxwise.com for TaxWise customers.

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Liberty, TaxAct Returns Off

John Hewitt, Liberty Tax Among publicly held companies in the tax business, everyone had a so-so-tax season, except for Intuit. The last companies to report results for the 2015 tax season were Liberty Tax Service, which said the number of returns prepared by its offices were up .6 percent, over the prior year, and Blucora's Tax Act, whose total returns were flat. That came as the Affordable Care Act failed to drive customers to paid preparers in any numbers.

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Florida Preparers Indicted

dojTwo Miami, Fla.-area preparers have been indicted on charges they used first-time homebuyer credits to swindle the government. The separate indictments charge Noe Mompoint of Southwest Ranches, Florida, was charged with 14 counts of aiding and assisting in the preparation of false federal income tax returns. Lucvens Francois, of Aventura, Fla., faces 19 counts on the same charge.

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Tax & Accounting Leads Thomson Results

Stephane Bello, Thomson Reuters The Tax and Accounting business led all Thomson Reuters segments in growth of revenue, EDBITDA and operating profit for the first quarter ended March 31. The unit saw a 17-percent increase in operating profit and a 10-percent rise in revenue before currency. And currency was a major issue as the strength of the U.S. dollar pushed corporate results down.

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Block Returns Drop, Revenue Rises

William Cobb, H&R Block The number of individual tax returns prepared by H&R Block during the recent tax season was down by .9 percent from the 2014 tax return. The tax services company said this week that the number of assisted returns through April 16 fell by 4.6 percent from the prior year. However, Block said the number prepared through its software products—including online, desktop and mobile—rose by 8.2 percent.

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