Justice Dept. bans tax franchise owners

WASHINGTON, Sept. 28 (UPI) -- Owners of Jackson Hewitt tax preparation franchises in three cities have been banned from the business, the U.S. Justice Department announced Friday.

The government complaints alleged that the franchised corporations “created and fostered a business environment in which fraudulent tax return preparation is encouraged and flourishes.”

If federal judges in each city agree, the bans go into effect immediately in Chicago, Detroit and Atlanta. A fourth location, in Raleigh-Durham,N.C., will be allowed to continue but with restrictions and monitoring.

Several individuals also were dealt with, including Farrukh Sohail, who owns all or part of each of the corporations involved.

Jackson Hewitt Tax Service of Parsippany, N.J. is the second largest tax preparation firm in the United States.