In the Know
CANON CITY,#2UPDATE EX-employee responds
Thu, November 07, 2013
Judge Finds that Instant Tax Service Franchisor Defrauded Customers, Obstructed the IRS and Violated Court Orders on Lending Practices
A federal court has entered a permanent injunction ordering ITS Financial LLC, the parent company of the Instant Tax Service franchise, to cease operating, the Justice Department announced today. The injunction order, which was signed yesterday by Judge Timothy S. Black of the U.S. District Court for the Southern District of Ohio, also bars Fesum Ogbazion, the sole owner and CEO of ITS Financial, from operating or being involved with any business relating to tax-return preparation. The court issued the order following a two-week trial in Cincinnati in June 2013.
Instant Tax Service, which is based in Dayton, Ohio, claimed to be the fourth-largest tax-preparation firm in the nation. According to the court, ITS Financial had about 150 franchisees that filed over 100,000 tax returns each year in 2011 and 2012. Two other entities owned by Ogbazion, Tax Tree LLC and TCA Financial LLC, were also defendants in the case and were also ordered to cease operating.
The court found that Ogbazion and his defendant companies had:
Read more here: http://www.justice.gov/opa/pr/2013/November/13-tax-1196.html
Help for Instant Tax Service Victim
Dayton,#3UPDATE EX-employee responds
Wed, April 11, 2012
Hello "In the Know"!! Have you seen that the Department of Justice has filed a civil lawsuit to shut down Instant Tax Service? I am sure they would love to hear what you and your friends have to say. How could they contact you?
In the Know
CANON CITY,#4UPDATE EX-employee responds
Wed, April 11, 2012
I was a store and regional manager for a franchise owner of this company for five years and helped within their corporate office as well. The main location in Dayton allows and ENCOURAGES this. All of those fees are refundable. The Service Bureau fee is to help pay their franchise fee to headquarters.
They have been filing taxes illegally and fraudulently the five years I was there, and this past year (I have friends who still work for them).
If the justice department wants to get hold of me for testimony against them, I would be willing to tell all that I know about how they run business.
They only use ADP to download W2's, otherwise they will get the company info and EIN off other websites (such as knowx.com) so they can file without the tax clients knowledge. When these offices are audited by the IRS they go in to files and print off system printed W2's and doctors pages that were supposed to have been filled out originally, then lie to the IRS auditor. They also allow all preparers to use each others log in information into their software so you never really know who actually filed their taxes. I ran across about 200 returns in just one year that I never touched. They actually gave my password to someone else, and the owners would come in after hours and e-file returns that never should have been.
I tried warning them the entire time I was there. I'm tired of seeing them rip good people off.
Help for Instant Tax Service Victim
Dayton,#5Consumer Comment
Mon, March 26, 2012
Unfortunately, you are one of the many Instant Tax Service victims in Dayton, OH. They prey on hard working people who are in need of their refund. The company's CEO is fully aware of the misleading activities, and flat out fradulent practices that go on in the offices. The company is under investigation by the IRS and the Department of Justice for these practices, but they just can't get enough people to come together and complain. When customers realize there return has been filed without their consent, or illegally without their W2, or incorrectly, or they have been charged ridiculous fees they are rightfully angry. They call the office to complain, they call the corporate office, and they tell their friends. But once they have received their refund, it seems their anger subsides, and the issue is just let go. I encourage you to contact the Ohio Attorney General to log your complaint and for you to encourage others that you know who have been preyed upon by Instant Tax Service to do the same. The only way they will be stopped is for people to make as much noise as possible, to the right people!
Jeanski
Buffalo,#6Consumer Comment
Sat, January 28, 2012
Your case is sad, but typical. For the life of me I will never understand why people choose to use a service like this when filing your taxes has been made ridiculously simple.
Unless you have a complicated return (investments, a business, real estate) or a reading disability, it's not hard. The new tax software is so easy to use. Also, there are many options for people who need a little help. I know my local library offers a tax prep service for free to certain people. If you receive any kind of government assistance there are probably options through them as well.
I know that a lot of people are lured in by the instant refund, but it truly isn't worth it. You spend a few hundred dollars for tax prep, interest on the "refund", and you have the additional headache of falling into a trap like the OP describes.
As an alternative, people can use one of the free e-file programs available online (start with the IRS - www.irs.gov) and have their money within a week or two if they use direct deposit.
From my own personal experience: I used H&R Block the year I got divorced. They offered a free tax consultation. After all was said and done they told me I would be paying hundreds in taxes. I couldn't believe it, as I had always gotten a refund. I told them I wanted to think about it. I did NOT sign a contract with them. I ended up buying the software ($25) and doing it again, to find that I was getting giant refund because they screwed up my filing status. I went back to them and asked for my W-2s. They refused, saying they had done all this work. I pointed out we had no contract. We argued, I left, and called my brother the lawyer. Within 10 minutes H&R Block was calling me back saying I could pick up all my paperwork. Turns out my brother's firm also represented H&R Block :-)
Moral of the story: do it yourself and save money.