Local News

Jackson Hewitt to Suspend Most Tax Services in Triangle

Posted April 10, 2007 12:08 p.m. EDT
Updated April 10, 2007 7:07 p.m. EDT

— Jackson Hewitt Tax Service said Tuesday it has reached an agreement with a Triangle-area franchisee to temporarily suspend preparation and filing of tax returns at all of its locations.

The move comes a week after the U.S. Department of Justice and the Internal Revenue Service sued the franchisee, Farrukh Sohail of Atlanta, alleging the tax outlets he operated filed phony tax returns that cost the federal government more than $70 million.

The suits allege that the franchises hired poorly trained workers to complete tax returns for customers.

Some Jackson Hewitt franchise managers and employees received kickbacks from customers for helping them file fraudulent tax returns, according to the suits.

The agreement between New Jersey-based Jackson Hewitt and the franchises affects most of the 34 Jackson Hewitt outlets in the Triangle, though at least one, on East Millbrook Road in Raleigh, is owned by another franchisee, as well as those in Atlanta, Chicago and Detroit, where Sohail has other franchises.