(AP) — The government says it is trying to shut down more than 125 Jackson Hewitt tax preparation stores in four states, including Illinois, for systematic "tax-fraud schemes."
The franchises in question, including those in Chicago, go under the names "So Far Inc." and "Smart Tax."
The Justice Department accuses the franchises of bilking the government out of more than $70 million through fraudulent practices such as using phony W-2 forms, bogus deductions and fuel tax credits and false claims regarding the earned income tax credit.
Jackson Hewitt Tax Services Inc., with more than 6,500 franchises, is the nation's second-largest tax preparer after H&R Block Inc.
The franchises were either totally or partially owned by Farrukh Sohail, the Justice Department said, and involved "a pervasive and massive series of tax-fraud schemes," according to court filings.
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