LIBERTY TAX SERVICE Franchise Complaints

5,730 thoughts on “LIBERTY TAX SERVICE Franchise Complaints”

• Leftcomments before. Quite LTS when theystated they could add or remove any page LTS felt it needed in the Agreement without ZZZs signature.

  Now filing a FORMAL COMPLAINT with IRS concerning LTS.

  LTS directed me to violate the IRS reg requiring EROs to secure TAX DATA for 5 years.Waiting for comment from IRS.

  This could have been a good company ecept JH hires for attitude rather than knowledge… thas why LTS workers dont know what they or you are talking about.

• Deleting and adding pages to our agreements without signatures has been Liberty’s way of doing business for years. I had issues with them on bank paperwork where they said it was not needed to be kept in the local office because the main office at corporate kept them electronically. This was according to my AD. Luckily, I did not listen to them because the bank came in and audited me and I passed the audit. I asked the bank auditor if I had done what Liberty said, what would happen. He said that I am required to keep this paperwork on premises.

  Just another example of their incompetence.

• please call if there is a class action lawsuit iam an abused liberty tax employee

• @laretha d

  Stay tuned. You are not alone. News coverage is on the way. Please request through ADMIN of this site for my email and contact info. We need your story. Please post a general summary here as well.

  -Trisha

• @guest4444,

  Are you saying that Just because paperwork has not went through as a class action that it is over? You are sadly mistaken. Just as the original filing of that particular case…technicalities happen and it is all a process. Both witnesses reopened that case with new testimony. The only time they will be safe is when the FEDS get all of it first. It is all a process that John Hewitt is good at causing delays with. His fire is running low, he sure looks sick these days.

  If you are one of Liberty Tax Lawyers, then you should not say things like that. It leads people to believe the company is not under scrutiny and some people just may react in a very harmful way and leak very very private documents of that case which would surely humiliate every Liberty Tax, Jackson Hewitt in the Country and it would go Nationwide Coverage. Believe me Martha is not woman enough to handle it with her pathetic rebuttals to media. Time to trade her in for a younger girlfriend because she is burnt out and he is tired. Since John stutters and talks with his hands, he should have bought some fresh, younger talent for what is ahead.

  PS. To the franchisees still trying to stay open and working for free, I still pray for you all. Move it and improve it. You are not hopeless. This business is much easier without the baggage, drop them. You will never get an honorable agreement. They are at war with you all and always have been. They have no intention on making you a happy franchisee or leaving you with anything less than one shoe to walk with. Stop the cheerleading and take off the rose-colored glasses. They are made. Now they are turning your clients against YOU because you cannot pay them, service them, refund them…nor pay your employees. They say this is YOUR problem and not a f*** is given by them on any day of the week now.

  Put everyone of your complaints on the news, nationwide. You should not take the blame!!!!

  -Trisha

• I can’t wait for the news coverage! I hope it finally exposes this organization for what it is-a group of punks with lawyers stealing from entrepreneurs. Maybe this will push the government’s efforts to close the snakes down. I certainly hope so!

• The reason I started posting on this site was to provide information to potential franchisees that they would not get from Corporate or the list of franchisees that still had a Liberty Tax Service. All of the name calling by certain guest is to take away from what are experiences have been as franchisees. We have much more credibility when we stick to the facts.

• Ditto. Valuable information would be things like: if you have more than one location – have you able to shut down a location that was not profitable without running into problems with your royalty requirements? There are many local tax businesses that might want to sell. If you bought one or made an agreement with one – did you just fold it in and then pay royalties? How did you fight back when another franchisee flooded the market with free coupons? No restrictions! This is important information. Not who slept with whom.

• @Bill,

  Totally agree, this site should not be about current zees vs. ex-zees. This should only be about one thing: FORWARNING POTENTIAL FRANCHISEES TO THIS COMPANY!!! IF ANYONE IS READING THESE POSTS…THE VOLUME OF POSTS SHOULD BE ENOUGH TO SCARE YOU!!!

• I don’t think any organization should get a reputation for having it’s big guys drown it’s own little guys under the pretense of getting customers from the competition. Not wise to think you can break or close other tax shops by being a bully.

• How many people had to sign the at least 2012 form with or without their 5yr renewal that was a single page addendum claiming “I forgive Liberty and all people affiliated with Liberty for any wrongs in the past”? What wrongs and how many people had their payroll releases threatened until they signed it if they were under FAC or requested a fee intercept release of funds?

  How many people were pushed to expand in the rent to own program or the like when they were already in debt? Also, their financing approval was contingent upon these decisions as well and some were told to open multiple new stores just a couple years into growing their first and second store. Did you feel this set you up for failure with debt to net ratio suffering and sinking all the good results from the older stores you showed growth year over year?

  -Trisha

• How many people were pre-approved on their financing from Corporate this past year and then when the time of need during peak arrived, they pulled the plug already knowing your dependence of the terms and times of fund releases?

  -Trisha

• I wish this site would of been available when I purchased two territories. I truly would of only purchased one. It seems, once you have more than one territory, the expenses double or triple, because of payroll. Payroll sinks a zee and with payroll taxes, workers comp and all the other incidentals that come with employees. It seems if someone is doing extremely well, the AD and home office want to you to expand so you can’t leave them with money. They do rig their P and L to fit their model, nothing to do with reality, like I am in the hole by tens of thousands.

  This company thinks it owns the “customers” and those customers can’t go anywhere they want to go, I mean what a stupid concept. They only have that person for that tax season, there is no guarantee they will ever come back, especially when a customer is looking for a specific person and they act stupid and tell them, they have never heard of them. People end up thinking Liberty is a “jack arse” company and they loose the customer permantly.

  Trisha – I would like to email privately to you, so I will try and send an email through ADMIN.

• Advertising, where’s the advertising? Advertising, where’s the advertising?

• Probably the advertising royalty is paying either someone’s payroll or funding their retirement account, because there is nothing happening during last peak. This year, radio advertising stopped when the first delay from the IRS. I saw one mailing with either $35 off or free. All I received were $35 off. In year’s past much more advertising and much more radio. It has been silent all the while, H and R is pounding the airwaves.

• If news coverage is really coming, then that’s the best news I’ve heard in years regarding this stinking company. Why has it taken so long to develop a case against this man? Over 40 years he’s been allowed to get away with this kind of repulsive behavior. FEDS: Wake up!!! This man needs to be stopped. ASAP.

  I hope they take him DOWN (permanently) and everyone else in the corporate office too, especially and including the dozens of lawyers that are learning how to be the biggest pricks of all.

  Franchizee: you are right on target with your thinking. Having more than one office was a nightmare. Employees rip you off left and right. The customers that you work hard to cultivate are NEVER your own under this so-called system. The corporate office NEVER followed up on software issues, etc. always an excuse.

  I WOULD NEVER, NEVER, NEVER RECOMMEND THAT ANYONE EVER PLUNK DOWN THEIR HARD EARNED MONEY TO BE INVOLVED WITH THIS JOKE OF A COMPANY. THE HARRASSMENT FROM DAY 1 IS SOOOOOOO NOT WORTH IT.

• Even with the problems H&R had from the 600,000 education credit forms, they’ve had time to let people forget it. So now they are filling the TV slots with ads about their expertise. Nothing from JH or Liberty. You’re right the ads stopped in early February and nothing since. Marketing royalties should stop after Feb. if there are no ads.

• Is Jackson Hewitt done?

• After catching your own customers – hold some seminars to teach others how to do it.

• I agree with the comments and have filed my own complaint against LTS. I suggest if you read these posts then you must have a problem with LTS sooo now may be the time to file a complaint with the IRS asking for the IRS to pull the authority for LTS to process tax returns. This is the same penality preparers and EROs are up against. The next step is to write to congress ask them to look into LTS operation telling EROs to violate IRS rules and regs. LTS may give to political parties but we control the voters and congress will listen. We have started our letter campaign this week and will continue until LTS is dealth with according to IRS Pub 17, Cir 230 etc..

• Freedom:

  Have you contacted Jerry Arrington at the numbers that Trisha has posted a few times? He is a good person to talk to and many of us that post here have already talked and/or met with him in person. He is coordinating the effort nationally. I would strongly recommend that you contact him if you have not already done so.

• Freedom; We should all make some noise with congress. There needs to be better regulation regarding the Franchise disclosure document. Franchise performance representations should be standardized and based on facts suchs as annual store results of all stores not just a select few. The idea that you need to do your due diligence is hindered when most franchisees are in fear of the franchisor.

• With the recent list of results as of 04/08/2013 – many stores are not represented on either the single store or multi-stores. My stores have not been on for many years. Why am I still paying royalties. I wonder if this represent’s that my stores are not part of the full disclosure of not making any money?

• Does anyone who has left Liberty miss it at all? How has your business’ been doing since you don’t have Liberty’s handout? It seems no matter how is it managed, you can’t make enough to make it to the next season….It is the strangest model EVER! No way of making a profit or breaking even….

• Love being without Liberty!!!

• @Balancetrend – Are you making any money elsewhere?

• I tried for 4 years trying to make Liberty work at the end of that time I had spent $100,000 and owed them royalties and advertising fees of around $23,000. Intially they wouldn’t let me out of the deal but eventually they agreed to a mutual termination agreement without me having to pay.

  I had to take an accounting postion with a local firm. That said a good number of clients followed me. I know another guy who had a bigger book of business and is still handling most of them on the side out of his house and there was noting
  Liberty could do about it.

  Its been 4 years and I’m still anger that I didn’t just invest in myself. If anyone is
  thinking a franchise will provide you with more secuirity, think again. They have the same failure rate as any business started by an individual.

• @franchizee – I’ve always had a full time job, so now I just do that, but it’s great that I do not have to plow my regular earnings into Liberty!

• Moms and pops making the most money. Spent alot of money learning that. Investment only if you can sell later at a profit. Local mom and pop has 3 busy stores with a lot less money invested. Pouring money down the drain.

• Thanks for the info. Of course I will barely be able to pay the balance of the minimum royalties. I had more expenses because of paying off other expenses not related to this one store. I am trying to make the decision to let it go or try one more season. Awaiting for the five year agreement to come in the mail.

  Balancetrend, I bet is it wonderful to have all your hard earned money and not give it to Screwit.

  Does anyone know when you give back a territory and if Liberty want’s to open a store, but there is no location for them to open…..But we may still have a location and put another business in that location, what will happen if they are not able to open a store in that territory? The business would not be taxes thou.

• I hate this company My 5 year agreement is up this summer so I am done done done. they will screw you out of every dime if you let them BEWARE NEW PEOPLE DO NOT INVEST IN THIS COMPANY don’t believe a word they say. I am going outside my 25 miles and I am going to open right next to a Liberty and put a sign out that I will beat their price EVERY TIME. It’s not about the money to me it’s the lack of principles with this jerk

• @ Franchizee,

  How much does Liberty Tax Corporate know of your intentions or ideas to look for options? IMHO, Once you start asking questions like this to them, they can prepare for their best interest and things can change quickly out of your control. You could be a target at that point because closing stores is not something they may want to see. They focus on expansion and not so much as individual goals of profit or cutting (YOUR) the franchisees losses in my experience. It could be different for you as it is for another person in another location with other metrics on all ends.

  Also, what do you mean you are “waiting” on your 5yr renewal? You need time to get a lawyer and an analyst to account for everything in the paperwork, review your 5years of accounting and understand what you are signing. It should not be sent to you at their leisure especially during a tax season when you may be forced to rush and possibly sign under duress. If your 5yrs is here, demand the paperwork so you can do your review right away to get informed of what changes are in the contracts. Compare them to older ones and compare them to other franchisees renewals for any changes.

  Giving back a territory? Ask a contract lawyer to help review your agreement. Do not forget to also get a financial analysis to examine the accounting of every penny from the start and good idea of projections. You need to know what you truly own if anything. You need to know if you have a true cash flow with loss or a hope of profit at all. What is going in your bank and what are you banking on overall in the end? You may or may not own any real paper notes to anything. A professional needs to step in at this point with this much time vested. You need to know why the numbers are working the way they are which has always been the confusing million dollar question. A breach of contract can cause them to take back your entire entity and they can try to not pay you a dime without suit. Do not put your entire entity at risk.

  What type of business are you thinking of pursuing that is not in taxes? I have found that when tax season is ending, there is a good demand for the seasonal peaks of HVAC business as well as Roofing from working with insurance adjusters from Hail, Wind and Hurricane claims. However the Roofing/Siding/Gutter contracting that feeds from Catastrophe no-fault claims cannot be controlled on location if your company has to dispatch to different states but HVAC can be in your backyard servicing all your locals. HVAC is just getting really busy with the weather change. Just a thought of a marriage between wanting two seasonal businesses. ;-)

  -Trisha

• @Trisha – I only owe the royalties for this year. Once paid, I am square with them. Neither of us owe each other. I have another business I do full time and this part time, so just open that business in the same location.

  I have not stated anything to them. I keep close to the cuff unless they can figure who I am, which I could careless. The location I am in, has very limited areas to rent, which is why it was never purchased prior to us purchasing it. It only has one peak, so not a two peak area, which really bites into the money.

  My contract is up later this year, so thanks for the info. I am under no duress with this company. Everything is paid off except my own bank account. Just frustrating, no way of saving anything to make it to the next season. It reminds me of the Robert guy who had just enough money to make it to the next season just to turn around and pay off the royalty. I am just tired of funding Hewitt and his crony’s.

  Have you made any money this year? I have made money, just goes into the account and straight out again…… I am hoping this is normal for this business model. It has full year costs on now 8 weeks of payments. Or has it turned into 6 weeks.

• Franchizee:

  Are you seriously considering signing another 5 year contract??? WHAT don’t you understand???

  WHO in their right mind would EVER re-sign with them???

  Are you kidding??? They are sharks and will eat you alive! You CANNOT open a tax business at the same location or within 25 miles of your current location. They will sue you and that’s just the beginning.

• @SanFranDan – I haven’t read the 5 year contract. Want to see it before making a decision. I would not own the tax business, someone else would, so technically, I can work for someone, but can’t own an EFIN or business. My location is owned by me, not leased from anyone else, so I can make anyone lease out of the location, in fact I own two locations in the same territory.

  Did Liberty put another zee in your territory after you left?

• I have started a new category and series of posts of “Franchise Bullying.”

  http://www.unhappyfranchisee.com/category/franchise-issues/franchise-bullying/

  If any Liberty Tax (or other) franchisees can share instances in which they have felt bullied by the franchisor – either to hide their true experiences or opinions from prospective franchisees or in other ways – I invite you to share them here or via email to me at UnhappyFranchisee[at]gmail.com.

  Thanks,

  ADMIN

• Thanks ADMIN.

  Franchizee:

  It’s not gonna happen. They will sue whatever tax business is in that location. Been there, done that. Did they put another Zee in my same territory? They got some poor sucker to fork over @ 100k for that territory and location. They then proceeded to tell whomever asked for me that I had died. True story. You can’t make this stuff up. It’s disgusting and despicable.

  I cannot wait till this guy and this company are hanged out to dry. The amount of franchise “bullying” is at a record all time high. Having never been involved with a franchise before I have nothing to compare it to. However this was and continues to be one of the most horrendous experiences of my life. And it looks like I’m not alone. He needs to be stopped. And locked away for a million years.

• I would not put my tax business in the same location but my other business. They have already tried to tell people I don’t exist, however I am extremely well known with my other business, so people can see my picture and phone number. Anyway’s my tax business is in an unapproved location, so I guess they could sue, however, it is officially an “unapproved” location, which I set up inspite of there was no where to go or hand back the territory. I am sure I will get a notice to “cure”. God, please “cure me of this affliction”! :) They have my address wrong in the phone book, which is working in my favor.

  I live over 25 miles away from my territory, so we will see. I have my next business ready to go, however I don’t own it, and I am not a LLC nor a sole propiertor with Liberty. I have been planning this for about a year. I don’t owe them any money, so they could technically state I am doing taxes, however as long as I don’t own anything, they can’t touch my ptin.

• @SanFranDan – Thanks for all your info!

• Franchizee: I’m not sure how they could touch your PIN anyway since it is your fingerprints on the application card, not theirs. Once you are at least 25 miles away in your new tax business, you are in compliance. This will still not stop them from attempting to sue you for whatever reason possible. Since they are so crooked, they will stoop to any level to get you into litigation.

  Liberty also told my clients that I had left town or died, depending on the day the client called them. They also tried to call the clients and offered them Free tax returns if they stay at Liberty instead of going with me. Most of my clients saw the ploy for what it was-to see how ignorant they were to stay with a supposed brand name.

  The other thing that some of my clients were informed by Liberty was that the new management of my ex store was “very Aggressive” in maximizing their refunds. That was true since that Liberty store produced a few outright fraudulent returns that my clients were very uncomfortable with. Liberty went as far as to produce fictitious businesses, false home energy credits and schedule A’s that had no basis in reality. The IRS figured it out too and audited them. Liberty was not available to assist with the audits- what a surprise!

• @Scammed – Does it make a difference at what level of or lack of tax return numbers they are willing to sue an entity over? I mean you do way less than 600 returns, do they really care about that territory or market?

  I have prepped my people but only the ones I want to have follow me. I know once I send in the territory I cannot contact them, so I am doing everything prior. I have also messed with phone numbers, so most don’t work this year! :) Also have not updated phone number nor emails or taken them off completely.

  It is typical procedure for companies especially East Coast firms to do the dirty pool as you are speaking. We had a large agency before and what people told us in a our area was basically ridiculous. What it did in this area is loose business for the big company which they have not recovered. It has been almost 10 years. Being friend’s with the CEO of that large firm, he took serious notice. They changed their way of business, but it the damage was done. I plan on basically doing the same with Liberty, but they seem to do it all themselves. They will be ruined eventually, because people are not putting up with hateful comments and when people see you are alive and in another firm will only make them not like Liberty…..

• Also, I am forcing Liberty not to be able to open in my old store front’s and making them get new stores. It has pissed them off, but nothing they can do. I have people take over other places and they just ride on your good works and honesty and integrity. Nope – They are on their own! I already did one store like that and it has been devastating for them!!

• To the Liberty Jackals, it makes no difference to them the number of returns you did. I would say, however, the more returns you do, the quicker you will be to draw their ire! Watch out for the lawsuits-they are a coming!

  By now Hewitt and his gang of clowns must realize that the end of the gravy train is approaching. It is a matter of who he eventually sticks the company to (notably, the shareholders will be left holding the bag). The only real way to beat them is to out “liberty” them. Adopt their tactics since they are very good at this. Be prepared for a lot of lawyers in your life, Yours and theirs.

  I like the protective measures you are taking. I wish I had at the time the same knowledge that this board provides. Good Luck.

• Seriously…when does the 5-year notice to end come? Should we be expecting by month’s end?

• April 15th, 2013

  My hope & prayer is that this will be the very last tax day that JTH and LTS will ever have.

  He needs to be stopped and put out of business forever. He has ripped off people for way too long.

  I want him to suffer the way he has lead thousands of people to “drink the kool aid” and suffer devastating losses.

  I have found great pleasure in turning people away from buying into this franchise. The rest of the world now needs to know the TRUTH. Can’t wait.

• I suspect that the 5 year contract comes to an end when you signed it 5 year’ prior. Supposely, they are to mail it to you 6 mos in advance.

  @SanFranDan – It will happen one way or another. People in my area either want to sell or walk away, however most are tied to the FAC they had taken and can’t leave. I can walk away any day, just seeing what the 5 year contract looks like.

• NOW THAT THE BANKS MADE $100,000 DOLLARS WITH THE ICA’S, THEY NOW CHARGE US FOR PROVIDING THERE SERVICE TO CUSTOMERS. I THINK THE BANKS SHOULD PAY US FOR HAVING TO DO THERE WORK!

  OVER PRICED PRODUCT. I HAVE A 25% WALK OUT ALL OVER THE PRICE.

  YOU WILL NOT MAKE ANY CASH HERE. START A MOM AND POP AND MAKE SOME MONEY THERE. THEY CHARGE WAY LESS AND STILL MAKE MONEY.

  HAD A WOMAN COMPLAINING ABOUT THE PRICE, WE LOOKED UP HER ADDRESS. SHE LIVES IN A NICE GATED CONDO COMMUNITY. AND SHE COMPLAINING OF MY FEES AFTER A 25% DISCOUNT.

  DO NOT JOIN THIS FRANCHISE.

• IF YOU HAVE 40-80 LAYING AROUND. EITHER GO TO VEGAS AND ENJOY THE SCREWING YOU WILL GET THERE AT LEAST YOU WILL ENJOY IT. OR SEND IT TO ME, I NEED TO REPLACE THE FUNDS I LOST WITH THIS “FRANCHISE”.

• Ask yourself, “Am I better off this year than last year as a Liberty Tax Franchisee?” I would say the overwhelming answer is no. Any money people will be seeking would be for the huge lawyer fees that are coming.

• I would say most likely I could of done this without their headaches and throwing money at them. I would have a great profit if I did not have these royalties. This should be the last year for me!