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 Says 2013 Returns Slightly Down

irsThe number of self-prepared tax returns efiled for 2013 grew up 4.6 percent, according to the Internal Revenue Service. That means the D-I-Y growth continued to outpace the number efiled by tax professionals. The IRS also reported this week that the number of all returns received and processed were down slightly.

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IRS to Warn on EITC Claims

eitcThe Internal Revenue Service plans to send warning letters to preparers who are suspected of filing inaccurate claims that involve the Earned Income Tax Credit. To be sent out this month and in December, the letters detail issues identified on returns and explain the consequences of filing inaccurate EITC claims.

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Court Shutters Instant Tax Service

Fesum Ogbazion, Instant Tax ServiceA federal court in Ohio has ordered ITS Financial, parent of Instant Tax Service, the nation's fourth largest tax franchise chain to cease operating. An injunction also bars Fesum Ogbazion, owner and CEO of ITS Financial, from operating or being involved with any business relating to tax-return preparation because of a widespread pattern of fraud by the chain.

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PTIN Renewals Swamp IRS

IRSAn unexpectedly large number of Preparer Tax Identification Number renewals attempted last week swamped computer systems at the Internal Revenue Service. The result was slow performance, timeouts and an inability of those trying to renew their numbers to do so.

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ATX Roadshow Starts This Month

cchsfsCCH Small Firm Services, which had major problems with its ATX tax software during this year's tax season, is taking the 2013 version of the application on the road. The company this week announced a seven-city road show at which tax professionals can give the last edition a hands-on test.

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IRS Rolls Out Fast Track Settlement

IRSThe Internal Revenue Service has introduced Fast Track Settlement, a program designed to enable small businesses undergoing an audit to settle issues. The program is designed for small businesses and self-employed individuals who are under examination by the Small Business/Self Employed Division of the IRS.

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U.S. Wants to Bid Aloha to Preparer

justiceThe United States has taken action in a federal court in Honolulu, Hawaii, to stop James A. Ericson from preparing tax returns for others. The complaint alleges that Ericson, said to have prepared more than 1,000 returns a year, created phony businesses and inflated credits and deductions on clients' returns.

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2014 Tax Season Delayed

irsEarlier this year, Congressional haggling delayed the start of tax season. Now, the Internal Revenue Service says the recent government shutdown means the 2014 season will also start late with the delay estimated to be from one to two weeks.

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Drake Rolls Out Hosted Apps

John Sapp, Drake SoftwareDrake Software has placed its entire product line in the cloud via hosting. The Franklin, N.C.-based company said the platform is supporting the Drake Professional Tax Solution, Client Write-Up, Payroll and Document Manager, as well as hosting important Microsoft applications.

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Firms Targeting Elderly Shut Down

Fraud Recovery GroupTwo tax preparation companies that specialize in serving the elder, and their owner, have been barred from preparing tax returns for others. A court in Columbus, Ohio, issued the order against Tobias Elsass and his companies, Fraud Recovery Group and Sensible Tax Services. The parties were taking 30 percent to 35 percent of some clients' refunds.

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