Posted on 02/02/16
| News Source: WBAL
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:
The four other tax preparation offices added to the probe:
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.