In our last several stories we have discussed the need for tax professionals to adhere to professional standards and to follow the law. We discussed the substantial increase in tax scams and the unethical practices of some large national tax representation firms and others.
Instant Tax Service, which claims to be the fourth largest tax return preparation firm in the nation, was recently permanently enjoined by a federal judge from preparing tax returns. Judge Timothy S. Black stated that Instant Tax Service demonstrated “an astonishing array of repeated, fraudulent and deceptive conduct” and that the evidence “was so overwhelming that the Court concludes easily” that a permanent injunction against Instant Tax Service was necessary. Instant Tax Service was alleged to have cheated its customers by marketing fraudulent loan products, requiring franchisees to charge phony fees and forging customers’ signatures on loan checks.
Were your tax returns prepared by Instant Tax Service? It may advisable to have those tax returns reviewed by a qualified CPA to ensure that they are honest and accurate. “The IRS randomly sampled 2010 tax returns prepared by five ITS franchisees and found that over half of the over 24,000 tax returns prepared by those franchises were non-compliant,” according to Forbes.com. When choosing a tax return preparer, be sure to only hire a qualified CPA and never hire an individual who promises a refund. Please review our Beware of Scams! page on our website.
Photo Source: instanttaxservice.com