After Troubled Season, Liberty Forms Compliance Group

Liberty Tax Service has developed an executive task force to examine issues within the company “and take aggressive action” to ensure all franchisees meet the tax prep giant’s standards.

Liberty closed several offices nationwide after the IRS and other authorities questioned returns processed by offices in New York, California and Maryland.

“In the last several months, the company’s internal compliance program has identified issues at franchise locations that have led Liberty to close or take over certain offices. State and federal authorities have been involved with some of these offices,” the company said in a statement.

“An extremely small percentage of franchisees are under scrutiny. Where we have found violations, we have terminated franchisees and in some cases even brought legal suit,” said John Hewitt, founder and CEO.

Gordon D’Angelo, a member of the board of directors, will head the task force.

Liberty said it has also “enhanced its compliance and risk management department to uncover violations, blacklist tax preparers suspected of wrongdoing and report those suspicions to the IRS.”

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