Jackson Hewitt Tax Fraud Probe Grows

Franchisees Probed by Justice Department and IRS

Jackson Hewitt disclosed to the Securities Exchange Commission last week Thursday that the Internal Revenue Service has expanded its investigation to an unspecified number of its franchisees and company-owned centers for filing fraudulent returns to help customers get bigger refunds.

The Justice Department as early as April 3 filed civil injunction lawsuits seeking to halt fraudulent practices at more than 125 Jackson Hewitt retail tax preparation stores in and around Chicago, Detroit, Atlanta and Raleigh-Durham, N.C. Those centers were largely owned by an Atlanta franchisee, who has agreed to temporarily suspend all his franchise operations. [via Kiplinger]