Comptroller Peter Franchot on Tuesday expanded an investigation into possibly fraudulent returns filed electronically from Liberty Tax Services locations.

Last week, he suspended acceptance of electronic returns from seven Liberty franchisees. On Tuesday, he expanded that order to 16 more Liberty locations and four other preparation sites. The Liberty locations affected:

  • 11262 Georgia Ave., Wheaton
  • 200 N. Highland Ave., Baltimore
  • 201 Back River Neck Road, Middle River
  • 2039 W. Pratt St., Baltimore
  • 2201 N. Charles St., Baltimore
  • 2927 Emmorton Road, Abingdon
  • 312 S. Broadway, Baltimore
  • 343 Belair Road, Baltimore
  • 3414 Eastern Ave., Baltimore
  • 3427 Dundalk Ave., Dundalk
  • 435 C Eastern Blvd., Essex
  • 4422 Park Heights Ave., Baltimore
  • 6518 B Reisterstown Road, Baltimore
  • 7305 York Road, Towson
  • 7565 Ritchie Highway, Glen Burnie
  • 8020 New Hampshire Ave., Langley Park

The four other tax preparation offices added to the probe:

  • EB Tax Services, 1809 Pennsylvania Ave. & 2322 Monument St., Baltimore
  • B & B Tax Services, 4707 Harford Road, Ste. B, Baltimore
  • DE Brown, 36B E25th St., Baltimore

What made the suspicious returns stand out? Taxpayers would report business income despite not owning a business. Refund amounts requested were much higher than previous years. Business expenses weren't documented. Dependents were claimed when the taxpayers didn't provide the required minimum 50 percent support. Some taxpayers would inflate wages and withhold income information.

Franchot's office advises taxpayers to review their returns and be suspicious if a tax preparer deducts fees from the refund to be deposited into the preparer's account; does not sign the return; or failes to include the preparer's taxpayer identification number. Anyone suspecting fraud is asked to report it to the comptroller at 1-800-MD-TAXES or 410-26-7980.