Maryland Comptroller halts processing of Liberty Tax tax returns – Maryland Liberty Tax Scam

My State Refund State Listing - Maryland Comptroller halts processing of Liberty Tax tax returns – Maryland Liberty Tax Scam

Maryland Comptroller halts processing of Liberty Tax tax returns. Maryland Liberty Tax Scam

The Maryland Comptroller’s Office has halted the processing of electronic tax returns filed at several Baltimore area locations of Liberty Tax Services. Details of this Maryland Liberty Tax Scam surfaces below:

Comptroller Peter Franchot said  the returns and the businesses are being investigated for possible fraudulent activity.

The investigation involves seven Liberty Tax Services locations. The businesses haven’t been shut down, but the tax filings from those locations are not being processed, pending the investigation.

Franchot announced that his office has suspended the processing of electronic tax returns prepared at the Pennsylvania Avenue location, along with those on East Monument Street, North Avenue, Liberty Heights Avenue, Pennsylvania Avenue, Greenmount Avenue, Lexington Street and on Wise Avenue in Dundalk.

Comptroller investigating Liberty Tax Branch locations

The Maryland comptroller’s office is investigating seven Baltimore area Liberty Tax Service locations over concerns regarding questionable tax returns.

Franchot said his office received a high volume of what he called “questionable” tax returns from the businesses.

“We found 1,100 fraudulent tax returns, what we think are fraudulent tax returns, in a very short period of time,” Franchot said. “These returns were reporting individuals owning businesses and asking for business reductions when the individual didn’t have any businesses. (There were) wildly inflated expenses (and) just all sorts of warning signs going off.”

All of the locations are franchises and the owners were sent letters about the suspensions. Franchot said that the returns in question were flagged and put aside for further investigation.

Franchot said customers who filed their taxes at those locations will experience a delay in receiving any tax returns.

“We will look at those returns manually, and if it passes the normal markers so they are appropriate, we will process it,” Franchot said. “But, it’s going to have to be a delay. It’s not going to be the 2.1 business days (we typically average for state returns).”

Maryland Liberty Tax Scam

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