The IRS announced on Tuesday that it has filed suit against five Jackson Hewitt franchises for fraudulent tax return preparation practices. The government alleges that illegal practices by the defendants, such as claiming refunds based upon phony W-2 forms and exagerrating claims, has cost the U.S. Treasury a loss of over $70 million.
The lawsuit seeks an injunction against the defendants to prevent them from preparing further tax returns. In July 2006, a federal court in Miami, Florida barred a large Jackson Hewitt franchise from making frivolous claims on tax returns.
Source: http://www.irs.gov/newsroom/article/0,,id=169251,00.html
