Scuttlebutt Pipeline

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Well it didn’t take Scooby Doo to solve this mystery, just the IRS. Many of my mother’s customers this year have commented on how Jackson Hewitt got them back more money. One of the main gripes they had for her was that with JH they got EIC (earned income credit) and why wasn’t she letting them take it.

EIC is only available if the parents and children are all United States citizens or residents. If they have a TIN number, which is the number issued to keep track of illegals, than they don’t qualify and she won’t give it to them. Needless to say they head back to Jackson Hewitt who will let them take it. The tax preparers, accounts, and bookkeepers of this area have known about Jackson Hewitt’s less than legal methods but to say anything about it merely makes it sound like a case of sour grapes. After all the two big businesses in this area are H&R Block and Jackson Hewitt. To hear the local businesses speak out about their methods really doesn’t look good on the locals, so they deal.

Now there is some vindication to this:

NEW YORK (Reuters) - The U.S. government has sued the operators of more than 125 Jackson Hewitt Tax Service Inc. tax preparation offices, accusing them of cheating the U.S. Treasury out of more than $70 million through a “pervasive and massive series of tax-fraud schemes.” (source)

Yup, you read that right. 125 offices closed down! That makes me so happy to hear! Now maybe the IRS will be looking at all of the JH offices more closely and they’ll be forced to clean up their act. One can hope.

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