Miami Franchise Disciplined For Improper Returns

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A federal court has barred a Jackson Hewitt franchise from preparing federal income tax returns claiming an improper federal income tax exemption for casino proceeds paid to Native Americans.The owner of the Miami-area tax preparation franchise, Ahmad Labib Baltagi, along with two of his employees, were disciplined under the injunction, after the Justice Department filed a complaint in April. Labib Baltagi operates approximately 20 Jackson Hewitt offices and employs about 150 tax preparers in the Miami area.

The franchise and individuals agreed to the injunctions and admitted that the firm prepared the tax returns improperly. The Miami court ordered the firm to notify all customers for whom it had made such a false claim and to provide the Justice Department with a list of the name, address, Social Security number and telephone number of each of the Seminole Tribe members for whom they prepared returns with the improper deductions.

The franchise and the individual defendants are also barred from taking any unrealistic position in tax returns prepared for customers in the future.