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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Maryland Preparer to Serve Term

jc TAXA Baltimore, Md.-based tax preparer has been sentenced to a 20-month prison term for preparing phony tax returns. Charles Imariagbe, the operator of JC Tax ServiceS, drew the sentence after being found guilty on February 8 on 15 counts of aiding and assisting in the preparation of false income tax returns.

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Security Summit Outlines Plans for 2017

John Koskinen, Internal Revenue ServiceA W-2 Verification Code test will be expanded to cover about 50 million forms in the next season, one of several steps formulated by the Security Summit. The Summit, which is comprised by the Internal Revenue Service, software companies and other leaders in the tax preparation industry, was formed last year to combat identity theft and released plans for 2017 this week.

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Florida Preparer Draws 75 Months in Prison

A Florida Tax prepared has been sentenced to 75 months in prison, the same sentenced a co-conspirator drew in April, for their role in using stolen identities to seek more than $1.5 million in tax refunds. Rhonda Perry Gittens, of Pembroke Pines also must serve three years of supervised released and pay $794,444 in restitution to the Internal Revenue Service.

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ETAAC: eSignature Needed for Employment Forms

irsThe ability to use electronic signatures on employment forms is critical to the Internal Revenue Service reaching electronic filing goals, the Electronic Tax Administration Advisory Committee said in its annual report to Congress. ETAAC noted the IRS has a goal of having 80 percent of all major return categories electronically Filed. However, the employment taxes, the Form 94x Series, reached only an estimated 37.2 percent this year. Read more...

Florida Preparer Must Disgorge $1M

dojA Florida preparer must disgore $1 million after he agreed to be barred from preparing tax returns for others. Demetrius Scott of Orlando must pay the money that the United States says represents proceeds from phony tax returns he and his staff preparer for customers.

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New 990 Data Format Available

irsThe Internal Revenue Service says public data for electronically filed Forms 990 will be available in a machine-readable format through Amazon Web Service. Data was previously available only in image files, but will now be available as a downloadable file for filings from 2011 to the present.

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Brooklyn Preparer Gets Three-year Sentence

irsA Brooklyn, N.Y., preparer, who continued to file fake returns after her firm's Electronic Filing Identification Number was revoked, has been sentenced to three years in prison. Awilda Rosario, 40, drew the sentence after pleading guilty to two counts of aiding and assisting in the preparation of false income tax returns.

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Liberty Results Up; Returns Drop

John Hewitt, Liberty Tax ServiceThe number of returns prepared and stores operated by Liberty Tax Service were down for the 2016 tax season. But when the company ended its fiscal year on April 30, net income more than doubled and revenue was up by 7 percent over fiscal 2015 with revenue from tax preparation fees and financial products rising as the company cut expenses by 4 percent and realized an increase of 5.3 percent in the average net fees

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IRS Online Transcript Service Returns

John Koskinen, IRSThe Internal Revenue Service has brought back the IRS Get Transcript Service. The service went offline last spring, but has been relaunched with what the agency describes as a more secure framework to block potential criminal access, such as affected it last year. The IRS says the enhanced authentication process will provide a foundation for additional self-help service.

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Two Mo' Money Preparers Sentenced

Mo moneyTwo Memphis, Tenn., area residents, who were partners in a former Mo' Money Taxes tax store, have received prison sentences. Jeremy Blanchard and Erik Pittman, both 35-year-old Memphis residents, this week drew the terms for filing numerous phony individual tax returns. The Mo Money chain was ordered shut down in September 2013 after being accused of systematically preparing fraudulent returns.

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