Death by tax fraud
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Some Jackson Hewitt franchise owners may be feeling the heat after U.S. sues a franchisee for tax-fraud schemes.
On April 17 Jackson Hewitt franchise owners may be getting a little hot under the collar.
That’s not because of today’s tax deadline, but rather because earlier this month the Justice Department sued the operators of more than 125 Jackson Hewitt tax preparation offices, accusing them of cheating the U.S. Treasury out of more than $70 million through a “pervasive and massive series of tax-fraud schemes.”
Investigators accused 24 defendants in the Jackson Hewitt case of encouraging individuals to file bogus tax returns through such means as claiming fake deductions and fuel tax credits, seeking refunds based on phony earnings statements, and abusing the federal earned income tax credit.
“The news is going to negatively impact other stores,” according to Robert Purvin, chairman of the American Association of Franchisees and Dealers. “Hearing about a bad experience at one location may make you less likely to go into another location,” he said.
“That’s a fact of life of franchising.”
CNN Money
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