LIBERTY TAX SERVICE Franchise Complaints

August 11, 2009 asked: Are LIBERTY TAX SERVICE Franchise Owners Happy? If you’re familiarliberty_logo with the Liberty Tax franchise, please share a comment below.

Entrepreneur magazine has ranked the Liberty Tax Service franchise #3 behind  McDonald’s & Subway.  However, some commenters who claimed to be former Liberty Tax franchisees left stern warnings on the Franchise-chat forum.

BostonTax wrote:

I’m a former Liberty Tax Franchisee

I hope you are ready for a little enlightenment! I held a successful Liberty Tax Franchise for 5 years until I decided to let the franchise agreement lapse. I did this for a few reasons:
1. The royalty fees were outrageous! 14% went to normal royalty while and ADDITIONAL 5% went for so called advertising royalties. The ad royalties were supposed to be put back into your local market to build the brand name. This was never done! All advertising in addition to the ad royalty I had to pay for because it did not fit into Liberty’s concept of advertising. I don’t know exactly what the concept was because our AD could not give an answer and the approved methods changed by the week.
2. Corporate was totally unresponsive to the needs of the franchisees. The AD system is designed to recruit anyone who can write a check for 100K. No other skills or ability required.
3. The minute you are behind in a royalty payment, they send you a notice to cure. After that, if you don’tpay, they try to terminate your franchise agreement.
4. Upon termination, Liberty enforces through legal proceeding a 2 year, 25 mile radis non compete clause that is in the franchise agreement. This is enforceable in the Eastern Division of the Federal District court, where, at least 2 Liberty friendly judges preside.
5. Liberty does not recognize chargebacks for bad debts as an adjustment for your royalty fees. All royalties are based on your gross, not your net collectable. This was an ongoing issue with them and the accounting department did not have the ability or the inclination to resolve!
My best advice is do not go with these guys, they are bad news. If you like to have people collect royalties and provide no support, then this is the franchise for you! It is very expensive to get into, the initial fee is around $32K just to buy the territory plus those pesky royalties. You can’t make money on this concept.

Most of the surviving franchisees I’ve talked to in the last 2 years have experienced great difficulty not only in making a profit, but in the corporate support or lack thereof.Remember, 19% of your gross is getting kicked back to Liberty, which is excessive by any standards. Please do yourself a favor and call former franchisees ,those that are currently getting sued (they are very likely to talk, as I found out), and current ones to try to get the straight poop.

Barbara Green wrote:

I too was a Liberty Tax Franchisee and I agree with everything you said.

The only reason for purchasing any franchise is because the business model is a proven marketing success as evidenced by the profitable franchisees. That is why you pay a license fee of $25,000. Being profitable is not in the cards for a Liberty Tax franchisee. Liberty Tax’s market/ business model is aimed at individuals who have very simple tax returns, i.e one W-2 and standard deduction which is why they were very successful in Norfolk, Va. That market is full of military people with one w-2.

Liberty will sell anyone a franchise at any location, in any georgraphic area, even if there is not a chance in hell of the franchisee being successful.

At one time, I too owned a Liberty Tax Franchise for one tax season. It was only one season because of the behavior of the Regional Manager who called me on January 15th demanding and screaming “Why had I not generated 200 tax returns and that maybe this business was not for me. I was stunned and confused since employers are given until January 31st. to give w-2’s to employees. Apparently, he thought that I was in Norfolk, Va. where that is possible.

It only goes downhill from there. The bottom line is I lost all of my investment in this businees (approx. $80,000) because I closed it rather than becoming a victim of this unethical company. NOthing would make me happier than to be a part of a class action lawsuit.



4,646 Responses to “LIBERTY TAX SERVICE Franchise Complaints”

  1. Up Hill Battle says:

    Thank you SaraEA. That information is helpful. I have the background for the complex returns. I have read your posts and I have learned a few things (e.g. “I am not taking any more customers”). Also, I know that your office is busy all year by focusing on complex returns. Is it possible to make more money by focusing on the harder returns?

    Thank you for your insight.

  2. Franchizee says:

    I agree with SaraEA – I have been focusing on more complex returns with lots of schedules. Most of my new clients are from retiring CPAS, people turning EA and not doing smaller returns and no one taking new clients.

    I have some easier returns, but mainly semi to complicated returns. I don’t do any trusts, corporations or partnerships. I am finding that I am staying pretty busy with 250 returns plus running another full time business all year long.

    I would like to increase to 350 returns and hold steady. I have been advertising for new clients and they are slowly trickling in the door.

    I am hoping starting my 2nd year without LTS, I am having a full time relationship with my clients via email, voicemail and some texting or just stopping by the office. Not just the one time they come in and leave with $50.

  3. guest says:

    Expect it to take at least 2 to 3 seasons and a couple of classes on corporate returns before getting the complicated ones. The clients you get will probably be new businesses. Don’t even try it unless you can get help. Training is more important with these returns because fraud comes with bigger dollar amounts so due diligence is more complicated. With partnerships you can get partners who disagree. More complications.

    SaraEA has lots of experience. She’s right. These clients are not interested in self-prepared. But you won’t get her fee level for years. Her fees cover the headaches.

  4. SaraEA says:

    Note too that if you do businesses and entities, you often do their accounting too. Well, many companies have their own people enter income and payments into Quickbooks, but those always require some cleaning up before you can prepare and P&L and do the return. If you’re not into bookkeeping, there is still a way to get some of those returns.

    Many accountants do not do individual returns. I have many clients whose accountants do their books and entity returns but send them on their way for their personal returns. You could try networking with local CPAs to see if they will send some of that work to you. You could also try subcontracting with other independents to send some of their overflow your way.

  5. Bill says:

    Now is the time Liberty is pushing to bring in new franchisees. As former franchisees we know what a mistake it is. But it was nice to hear from “Concerned Zee”. Right now on Zee-Net the website for Liberty Tax Franchisees there is over 280 and franchisees for sale.

    For those looking at this franchise you need to realize this company that talks about how fast their growing has actual lost stores over the past two years. They talk about how HR Block is losing market share because they now only control 22% of the market. But Liberty tax which is now a 20 year old company only has a 2-3% stake and are 3rd to Jackson Hewitt.

    HR Block which according to Liberty Tax is losing market share has no new locations available. The locations they do have are for sale by franchisees and today there only 43 locations available.

    Buyer Beware!

  6. Sad but true says:

    Those 280 territories for sale are most likely territories that are losing money. Posting your territory for sale on ZeeNet and having it bought is a long-shot.

    To prospective buyers; do not buy the sales hype from Liberty Corp. You have been warned. Actually, I feel I have personally (and others have also) given you ample reasons to be wary of buying a Liberty tax territory. If you have an attorney, show them the Liberty contract. Your attorney will tell you it favors the franchiser. You should read the posts on this site before you buy. If you still buy a territory after doing these things, good luck to you.

    Finally, my instincts tell me Liberty will fail. Sure, the so called 800 millionaires John claims to have made will probably continue to make money for him. But, this company is not a good investment for those interested in the available territories. That is why 280 territories are for sale. If you buy now, you too will most likely be posting on ZeeNet, for someone to buy your territory.

  7. Sad but true says:

    Contract favors Liberty – franchisor – sorry about the spell check error.

  8. NCHILLBILLY says:


    In re: Liberty Refund Anticipation Loan Litigation, Case No.: 1:12-cv-02949


    You May be Eligible for a Payment from a Class Action Settlement.
    A federal court authorized the Notice . This is not a solicitation from a lawyer.
    This is not a legal action against you.

    The Notice describes a proposed settlement (“Settlement”) in a class action lawsuit between JTH Tax, Inc., doing business as Liberty Tax Service, and Liberty Tax Inc. (formerly JTH Holding, Inc.), collectively “Liberty Tax,” and customers who received a Refund Anticipation Loan or other loan product, Electronic Refund Check, Electronic Refund Deposit or a similar financial product provided by Republic Bank that was facilitated by Liberty Tax (Republic Bank Financial Products) from 2009 through 2012. These Financial Products allowed Liberty Tax customers to choose to pay their tax preparation fees by deducting the amount owed from their tax refund for a fee (typically $29.95 or more). If you used Liberty Tax to prepare your tax returns and received a Republic Bank Financial Product, you may fit the description of the Settlement Class.
    •You can make a claim for a portion of the $5,300,000 Settlement Fund (net of any deductions for fees and expenses). Your claim amount depends on the number of years you purchased the Refund Products and the total number of persons making claims. To receive benefits from the Settlement, you must fill out a claim form, as described in part 4 of the Notice , and submit it by January 2, 2016.
    •You can exclude yourself from the Settlement (and receive no money from the Settlement but retain your right to bring a lawsuit). Your request to exclude yourself must be postmarked no later than December 2, 2015. You must follow the process described in part 8 of the Notice . If the Settlement is approved and you do not exclude yourself, you will be bound by the Settlement and will release certain claims described below even if you do nothing.
    •You can object to the Settlement. The deadline for objecting to the Settlement is November 3, 2015. All objections must be filed with the Court by that day and mailed to Counsel of Record in the case. See part 7 of the Notice for details.

  9. SanFranDan says:

    I’ve kept a very low profile and not posted on this site since SaraEA decided to nastily ‘tell me off’.

    Sara EA and Guest: You both can say whatever you want, but unless you’ve actually been in my shoes when I signed on with this hellhole franchise right from the beginning, then you really don’t know what happened or how manipulative this company can be.

    Say what you will. It is extremely complicated and the company and Corporate are full of “hot air”. This is a money losing proposition no matter how you slice it.

    Anyone looking to sign a contract: Save your hard earned $$$ and do something else. Plunking your $$$ down for a franchise with Liberty Tax Service is a sure way for you to become bankrupt, in jail, owing thousands or sued left and right. It is definitely NOT for the faint of heart or for anyone looking to make an honest living.

    You’ve been warned. The rest is up to you.

  10. SaraEA says:

    SanFranDan, I certainly didn’t mean to “tell you off.” I was responding to a post in which you made it sound like you followed Liberty’s off-the-record training to inflate EITC claims. (I wasn’t the only one who read it that way.) You responded that you got in trouble with HQ for NOT following their advice. For that I give you a lot of credit and am sorry for all the grief it ended up causing you. Friends?

  11. SanFranDan says:

    We ALL have to realize that this is a forum to warn people about the pitfalls of being a Liberty Tax franchisee. Unfortunately many of their practices are manipulative, irresponsible and illegal.

    WE are all in this together as either past franchisees or Tax professionals that were smart enough not to sign. I still maintain the EITC has been, and still is a very easy way for Liberty to sell to unsuspecting franchisees “their method” of ripping off the IRS.

    Now, it’s up to each & every one of us to make sure future franchisees are warned and we need to stand united.

  12. Igor Stravinski says:

    Due to some recent decisions in VA, it appears that many noncompete agreements included in franchise agreements with Virginia franchisers are invalid. If you want more information, please contact [redacted]

    I want to contest mine but need some others to compete with me to reduce legal fees.

  13. Trisha Grabert says:

    Keep the class actions coming, leave no district and no parry behind. Someone in each should take it all the way to trial and made public detail and answer in full transparency of the negligency of each violation that was willfull, intentional and of malice and vexation even to the franchisees, customers and if one more vendor calls me so help me…. The franchisees need to stand up, old and new and those also solicited to from automated calls. Lawyers pick up the pace.

    Just saying hi to everyone from Kentucky!!

    Great job on behalf of advocates and thr Department of Jistice and lawyers of representation. Now beat the asset management for their loss prevention and get real exposure and I still hear no apology public from the company. Lay down settlements is not an apology nor are they trying hard enough to reach all customers. Reminds me of the Labor Ready lawsuit where clients also were supposedly hard to reach from their database. It would be a great idea to just incorporate a tax credit to every social involved for the past few actions. Much like the telephone excise rebate of 2006?? Any thoughts?

    Why miss one party who doesnt know these cases are there to pay until expired. New action shouldnt have to be hunted but perhaps individuals who missed their mailings can bring seperatw suit and not settle for the sake of the inconvenience and failure to search as hard for customers as they do for new clients and franchisees to bring in assets..maybe some accointability and remorse is in order?

  14. Texastee says:

    Call me, your number was not working. Thanks

  15. Trouble says:

    Where have the few pro-Liberty backers gone to? Busy meeting with lawyers?

    Trouble is always brewing for those whom are greedy!

    All the news seems to be bad these days. Oh, I forgot, Liberty is the fastest growing tax company ever. I wonder how all of the crash and burn, one year and done, franchisee’s feel about that slogan?

  16. Texastee says:

    I’m sure Liberty’s lawyers are also busy. They have to ramp up for the latest lawsuits they are going to initiate against franchisees. Doesn’t anybody realize that this organization is bilking millions of dollars out of consumers as well as taxpayers?

  17. bill says:

    Today I received a mailer from Liberty Tax Service targeting insurance agents and asking them to “Take advantage of the intersection of insurance and taxes. Take ownership and expand your business portfolio with taxes. Liberty Tax Service offers a low-cost franchise opportunity with proven profit potential.”

    As insurance sales people my guess is most of them will pick up on the wording ‘profit potential” as purely marketing and no substance. However, I’m here to warn all potential buyers to avoid the mistakes we made by becoming franchisees of this company.

    Buyer Beware!!!

  18. Franchizee says:

    We received one for territories in our state.

    Bare in mind, yesterday from the Health Insurance Industry, the average insurance agent owes back in commissions, $9,000 from the subsidies which the person was not entitled to after the tax return was completed.

    I tell people unless you know your EXACT income, don’t take them or you will owe it back.

    Being in the health insurance industry is not going to be pleasant. With insurance, you do have charge backs in commission.

  19. Doris Day Cromartie says:

    Is this legal? A Liberty tax service preparer filed my taxes for 2014, and told me that he would file my 2013 when I get my w-2s (had to order duplicates from DFAS, and it took almost 3 months) to him IF I paid for the two years when you get your tax refund from 2014 with a discount for the 2013 he charged me 595.00. He never filed 2013, but now claims he and assistance put work into filing 2013, but he refuse to file 2013 because will researching my information, he found, and gave me a transcript from IRS where someone had filed my taxes before I could file my 2013 tax return because of ID theft. He then refused to file the 2013 period (well he did not have my W-2, so he could not file them anyway.

    When my W-2s finally came in my sister recommended Halls Tax service, and I took my W-2 to Halls, where a young lady, prepared my taxes for 2013, and filed them despite my having filed ID Theft form and submitted the transcript that Liberty Tax Service gave me and dismissed me.

    Now, 8 months later, the refund comes in, and the liberty tax preparer takes payment for both 2013, which he did not filed, and for 2014 which he did file, again, for 595.00, perhaps more. What are my rights? How do I pay the preparer at Halls Tax Service? Who, by the way not only filed my federal taxes, but also my state taxes too.

    Can he charge me 300.00 for preparing my federal taxes only without my W-2s and still refuse to file my taxes because I would not be able to pay him with the ID Theft hanging in the balance?

    Your guidance would be appreciated greatly.

  20. out and glad says:

    Ms. Cromartie,
    I am sorry to hear about your experience. Liberty has had a 100% Satisfaction (Money Back) Guarantee. You can go back into that office, and look for the 877 corporate number. Let the person in the office know you want your money back. If they do not give it to you, ask for the corporate phone number. If they do not give it to you, call another office and get the number that way. If the office does not give you your money back, call the corporate office and complain. The corporate office should give you your fees back.

  21. NCHILLBILLY says:

    Liberty Tax Service Headquarters Toll Free: 800-790-3863

  22. bill says:

    Today liberty had a press release telling the media how ” Liberty Tax offices with onsite health insurance agents will open November 1, to assist Americans with offices will be opening on November 1st to assist with Obamacare enrollment and plan renewals.

    I understand political correctness but here is a company just blatantly disrespect
    ting our President. The health plan is called the American Affordable Care Act.

    I believe that if you do your homework and have tax knowledge you should just consider going out on your own. How you approach it is up to you. I should of just going out on my own. Liberty Tax was the worst mistake of my life. In the same period I could have invested in me, worked out of my own home, paid for my own software and still be in business.

    I know Liberty the company is monitoring this site but for any current franchisee who is not afraid we need your story…

    I take my experience with this company personal. I will not rollover and I encourage everyone especially current franchisees to post here.

  23. SanFranDan says:

    ^^”Liberty Tax was the worst mistake of my life. In the same period I could have invested in me, worked out of my home, paid for my own software and still be in business.”


    That was by far the best two sentences I have seen in a long time. SO TRUE. I am in the same boat. It was a horrific experience. Worst mistake of my life is correct. We will live with this mistake to join Liberty Tax for the rest of our lives.

    BUT we can warn others to stay away.
    We have been ripped off, cheated, scammed and any other adjective you want to insert.

    It was a learning experience I wouldn’t wish on my worst enemy. This experience was so negative & stressful, it will stay with me for the rest of my life.

    Others………back away & go elsewhere. It’s a sham of a business.

  24. bill says:

    I found this post on Yahoo Finance under liberty Tax Inc. (TAX) message board. It’s from a current franchisee who has been with Liberty for 12 years and a big defender of this company is now having second thoughts. .

    :”Liberty HAD a good franchise, what happened?
    25 years with Block, 12 years with Liberty, both offering the same service of tax prep and are in competition with each other. Offices come and offices go. Mostly location and prices have a lot to do with success or failure. Both need high quality tax preparers and training, training, training is the key. Opening a franchise with 1st year preparers was OK when we had the RAL crowds, but with RAL gone, what is Liberty doing to advertise offices that can do partnerships, corps, estates and complex returns? AND, why isn’t every Liberty franchise offering that service? That’s where Liberty needs to go now that software is cheap and easy to use at home. This old saying that “anyone can do taxes” is a big lie, and I spend a lot of off season time doing amendments and explaining IRS letters. I would seriously like to see Liberty demand franchises hire MORE experienced pros. They don’t have Block’s volume that has 6-20 workers in an office at the same time blending both pro and newbie. Older Liberty’s can do this, but new franchises don’t, and one failing franchise is a reputation killer to the rest. Competition should mean MORE and better service than the other guy.”

    the same old story – Liberty Tax Inc. does not spend money on advertising and has no regard for it’s own brand. They will sell to anyone to just churn the territory. Thanks to this site there are less and less willing victims.

  25. Anne Esq says:

    I want to thank all you people. I am an attorney, as you might have guessed, and my husband is an EA and a former H&R Block manager. In 2013, we decided to open our own law and tax office, and we considered both Liberty and something called America’s Tax Office. We dropped the idea of Liberty when we read this board, and we eventually decided to go it on our own without a franchise brand. The first tax season (2014) was slow, but I kept us afloat practicing law, settling a couple decent-sized cases. The next tax season this year was twice as busy, and my EA husband is so busy in the off season with IRS letters, amendments, corporate taxes and representations that we had to bring in a second EA for awhile to help him get caught up. It is great. I am so glad we did not go with Liberty. Thanks again.

  26. Guest says:

    Experienced preparers are developed within a tax business. They aren’t out looking to get hired by block or liberty. Not to worry, liberty will prepare your fancy returns for $500.00 each. Crazy,right? Good and bad in all business situations. Just too bad no advertising unless it’s free.

  27. franchizee says:

    Anna – Thanks for the uplifting story. I am looking at becoming an EA hopefully in 2016 but for sure by 2017. I am starting my 3rd tax season without LTS and 2014 I was much busier and took in more stable clients, not people who love jumping clowns outside.

    Looking forward to a profitable year in 2015 tax season (2016 year). I increased by almost 30 percent from the year before and like you were more busy on the off season. I still have more to do before efiling starts in January 2016.

    It can be done, with advertising and being available.

  28. Texastee says:

    Interesting comment by franchizee “It can be done, with advertising and being available.” How do you reconcile all the money given to Liberty and their policy is still no advertising? Just goes to show, if you can get rid of LTS and not follow their inane marketing formula, you can succeed. Good for you, franchizee!

  29. bill says:

    All of us are glad to hear from people like Anne Esq. and franchizee. It’s an endorsement of what we have all been saying: #1 Liberty is a bad investment…..and #2 there is no magic bullet but if you have the knowledge and the determination to succeed, then the best person to invest 100% in is yourself.

  30. franchizee says:

    Amen Bill and Texastee – Starting up my marketing campaign in November and most of it will run year long now. Having the money during the 8 mos after April 15th is very nice and it really is a part time business at that point.

    Just did my two year mark without LTS and it looks like it will work.

  31. bill says:

    This is the last push for Liberty sales team before the upcoming tax season. Anyone listening to them will be given the impression of what a great opportunity it is and will try to close the deal because of the approaching tax season. Please don’t let this pie in the sky sales pitch suck you in. They told everyone of us to do projections based on 600 returns and for 1000 by 5 years. Of course none of that will occur so please don’t sign or in three months you will be regretting your decision.

    Buyer Beware!!!

  32. franchizee says:

    Yup, we have all the emails stating 600 returns for the first season. We would be at 1,000 at the 5 year mark.

    It does not happen EVER, since the RAL product and loans have been cut back. Also with Circular 230 in effect, everyone is held accountable for fraud.

    Don’t do it, because it is hard to make up the losses!

  33. SanFranDan says:

    Anne Esq:

    It is people like you that make my heart sing with joy! You absolutely without question did the right thing. If you knew my story, you will thank your lucky stars you didn’t join this piece of crap company. That goes for you, Anne, and other potential franchisees reading through this forum. YES! I love to hear about anyone who backs away and does it on their own. Good for you!!! :) You saved yourself tons of headaches and tons of $$$.

    Btw: ^^there is no way an office will do 600 their first year. (Legally) I had several offices and I remember they all started out okay, except one of them that had less than 100 returns the entire Tax season! Yucch. Plus, when you’re not around, it’s SO hard to control what the employees do and don’t do, especially since they have very limited Tax knowledge and know how to cheat you (the franchisee) as well as the general public.

    ^^The people that should be held accountable for fraud are the very people that began and run the company.

  34. bill says:

    SanfranDan: I just looked at TAX on yahoo finance it’s still trading at almost 36 x earnings. This whole company was developed with being able to someday go public with an IPO and have the owners cash in.

    The franchise model is ripe for this kind of play. The franchisor sells territories and receives a fee for that territory and collects annual royalties along with a marketing fee. The franchisee bares most all of the cost of operations, Any disgruntled comments by franchisees are played off as not following the system. So as long as they can continue to sell territories and accrue franchise royalties they appear very successful.

    You would think the analyst on Wall Street would scrutinize the numbers but that doesn’t seem to happen. How can they justify to there clients or their superiors the purchase of company that struggles every year with cash flow, needs a large credit line to get through to the next tax season and follows the same business model as Jackson Hewitt which went bankrupt 5+ years ago.

    Buyer Beware!!!

  35. SanFranDan says:

    ^^How true, Bill, how true.

    I have followed TAX on yahoo for years. It’s a sham how it’s being artificially inflated.
    I have a theory that this so called “Tax franchise” was set up for much more than you & I will ever realize. I have heard it’s a front for something BIG. And extremely illegal. I just have a feeling that HE and THEY will fall hard when the time comes. HE has gotten away with this for so long because, after all, he’s the “grandfather of Tax”.


    He has perfected his method of ripping off the general public so well that no one can seem to penetrate his actions. No one questions his methods, because, after all, he’s the grandfather of Tax. Well he’s a jerk. The sooner they get him the better off we’ll all be. Apparently his ex-wife would agree. And LOTS and LOTS and LOTS of ex-franchisees. He has done more than just take our money. He has taken away our belief system in paying fairly for something and getting completely ripped off, and worse. He is worst kind of CEO that anyone should ever encounter.

    It’s about time something POSITIVE happened for ex-franchisees and something totally NEGATIVE happens to that franchise and the people running it. Better late than never.

  36. ADMIN says:

     John Hewitt

    "As soon as we heard John Hewitt, we knew." reads the headline of a full page ad in the October Franchise Times.

    The ad starts with the strangely personal detail that Becky Elder gained temporary guardianship of her cousins so she had to find additional income. Then her husband Eric was laid off. After hearing John Hewitt speak, Becky and Eric opened their first Liberty Tax office in January, 2012.

    "Success was soon knocking on their door. Their business was booming… The Elders now have six Liberty Tax offices, and they plan to have 10 offices in their 5th year in business."

    The ad quotes Eric Elder: "Our CEO has nearly 50 years of tax industry experience.  He has created a great system.  All we had to do was come in and commit to listening and following the system."

    "Discover what John Hewitt and Liberty Tax can do for you!"

  37. Happy Franchisee says:

    Thanks Admin. You might be Fair and Balanced after all showing that some franchisees are actually happy, not like the 3 morons that post on here twice a day.

  38. SanFranDan says:

    Unfortunately Becky and Eric Elder will be writing of their negative experiences on this forum within a few years. Or they will be in the 1% that is happy giving all of their hard earned money away.

  39. guest says:

    Way too much credit given to one person. The franchisees are making the opportunity. This organization never advertises the importance of those people. Borrowing money and reinvesting and coming up with their own marketing.

  40. guest says:

    Where’s the full page ad for the stores ? When’s that coming? Where’s the TV commercials? When’s those coming?

  41. NCHILLBILLY says:

    Liberty Tax Service franchises shut down in Detroit, Warren, Hamtramck, Ferndale

    By Macomb Daily staff

    Posted: 11/17/15, 8:54 AM EST |

    The owners of at least 10 Liberty Tax Services franchises in the Detroit and Chicago areas agreed to stop operating as a tax-preparation business, federal officials announced Monday.

    The U.S. Department of Justice says it reached a civil consent deal with Syed N. Ahmed and his companies last week for a permanent injunction against several entities operating as Liberty Tax Service. In addition to Ahmed, the consent agreement affects Mars Inc. of Hamtramck, Nasah Inc., Millinium Financial Solutions Inc. and Mahad Inc.

    “The civil injunction order prohibits Syed N. Ahmed and his companies from acting as federal tax return preparers and from owning, operating, or profiting from tax-return preparation businesses,” the DOJ says in a press release.

    Ahmed and his companies agreed to the injunction but did not admit the allegations, the DOJ says.

    In its original complaint filed April 22, 2015, the DOJ names 12 locations, including four in Detroit, one on Nine Mile Road in Warren, one on Wyoming Street in Ferndale and one on Joseph Campeau in Hamtramck. The complaint says the defendants’ employees prepared federal income tax returns containing false information in order to illegally generate higher tax refunds or higher refundable credits for their customers. Inflated tax refunds and refundable credits were gained for customers by preparing tax returns that included false or inflated Schedule C (Profit or Loss From Business) income and expenses, bogus dependents, false filing statuses, improper education credits and false itemized deductions, among other things.

    The Liberty Tax franchises prepared 17,759 federal income tax returns between 2010 and 2013, costing the federal government $2.8 million, although the DOJ says the figure “could be much higher,” the release says.

  42. Guest says:

    NCHILLBILLY: Idea for an ad featuring Syed N. Ahmed “As soon as I heard John Hewitt, I was screwed.”

    Happy Franchisee: If you think that ad was posted by ADMIN to praise John Hewitt, add yourself to the moron list.

  43. J says:

    Hi everyone
    I would really like your advice on this one. JOHN HEWITT
    has now started Siempre Tax + which focuses on on the Latino market. Besides tax returns they offer some sort of immigration service and etc. How profitable do you guys think these stores could be in a bilingual community. My investment costs would be around 40k but a smaller ~25k loan would be necessary for initial costs.
    It seems like the market would be good for a latino based tax franchise and tne advantage would be my personal low cost investment. What do you guys. The FDDs are pretty much the same as the Liberty Tax. Any comments or advice greatly appreciated. Thanks.

  44. Bill says:

    Ask Yourself the following questions:

    Do I speak Spanish?
    Do I know and understand taxes?

    If yes to both then answer these questions:

    Why do I need to pay someone $40,000.00 for an unbranded name?
    Why do I need to pay royalties of 14% on my fees to a company with no brand name?
    Why do I need to pay advertising fee of 5% on my fees to a company that doesn’t advertise?

    After 20 years Liberty tax has very limited brand recognition. Siempre Tax + has none.

    Keep your $40,000.00 to invest in yourself.

  45. mike says:

    J…the Latino market is very difficult, they generally pay low fees to mom and pop competitors, so charging over $100 is very difficult. There is a lot of fraud with dependents etc. If you live in an area that is first generation it is difficult to convince them to file because usually they claim many dependents and tend to owe..thus they won’t want to file unless going through immigration and are now being required to file. As for immigration reform that John has been dreaming of, not likely to happen any time in the next several years if ever. If Trump wins believe it or not it will be the best for the undocumented community. If Hillary wins, it is the same ol same with Latinos.

    Liberty will want/require you to do free ITIN’s which comes with some liability. If you are bilingual, open your own tax company and run/stay away from Liberty. They are a horrible company (my opinion). Good luck.

  46. guest says:

    Check this website for Fiesta Tax article. This concept is already in place for some smaller companies that also franchise.