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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Mississippi CPA Gets Five Years

Nicholson Carl

A Mississippi CPA, whose crimes included under-reporting income from the sale of his own firm, has been sentenced to five years in prison. Carl Nicholson was convicted February 8 of conspiracy to defraud the United States, along with six counts of aiding in the preparation of false tax returns and four counts of filing false tax returns.

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Intuit Tests Full Tax Prep Service

Goodarzi sasanIntuit has tested a version of TurboTax Live via which it will provide complete tax preparation services to customers. CEO Sasan Goodarzi acknowledged the test this week during the webcast for earnings for the third quarter ended April 30. 

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Tax Filings: Up, Down and then Even

Tax montage army

In the last month, the number of returns filed with the Internal Tax Service has a) been less than the number filed in 2018; b) exceeded 2018 returns; c) been virtually unchanged. The answer is all of the above as the statistics have bounced around and in the totals for this year through May 10 ended up virtually unchanged  from a year ago in the latest IRS weekly report.

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Intuit Admits Hiding Free File Page

Intuit's CEO has admitted his company decided to not have its landing page for the IRS Free File program ranked for search results. In an internal video published on the web site ProPublica, CEO Sasan Goodarzi said the company has removed the limitations.

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Liberty Gets Recapitalization Bid

Tax prep glassesLiberty Tax Service has received a $12-per-share recapitalization offer from Vintage Capital Management, which already controls the tax services company. Vintage also indicated that it could quickly add other "operating assets" to Liberty’s business, along with the debt-and-equity offer.

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Wayfair to “Ripple” through Indirect Taxes

The Supreme Court’s Wayfair decision, which lets states tax online sales, is going to have an impact across the indirect tax market, according to Scott Peterson. Peterson, director of government affairs for Avalara, said this month the decision will force all levels of government to rethink taxes.

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Preparer Arrested in False OID Claims

A California tax preparer utilized Form 1099-OID withholdings to seek $5.49 in phony tax refunds, a federal indictment allegedthis week. Cubby Wayne Williams, 63, of Alhambra, was indicted on 22 counts of assisting in preparation of phony returns for clients and four counts for preparing bogus returns for himself.

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IRS Seeks IRSAC Members 

Internal Revenue Service is seeking applications for membership for the Internal Revenue Service Advisory Council. The council serves as an advisory body to the commissioner of Internal Revenue.

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Former Mo Money Preparer Draws Five Years

A franchisee of the former Mo Money tax store chain has been sentence to five years in prison. Teresa Chism is the latest person formerly associated with the chain, which had once more than 300 stores in 13 states, to be convicted for tax return fraud. She continued operating tax businesses after the chain itself was closed.

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DIYs Responsible for Tax Season Growth

Tax formThe number of returns filed for the tax season through April 19 was up .2 percent over the year through April 20, 2018. The statistical report from the Internal Revenue Service, which encompassed this year’s filing deadline, showed that all growth stemmed from self-prepared returns.

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