The Justice Department said it has resolved lawsuits against several corporations that owned Jackson Hewitt franchises, with the companies agreeing to be barred from tax preparation after the DOJ found a pattern of fraud.
The franchises were located in Atlanta, Chicago, Detroit and Raleigh-Durham. The owners are selling their Jackson Hewitt franchise rights to new owners. One corporation that owns a franchise in Raleigh-Durham will continue to operate, but will be subject to restrictions and monitoring.
The government also has barred some individuals as part of the settlement. One of them is Farrukh Sohail, who owns all or part of each of the corporations holding the Jackson Hewitt franchises. He will be barred from preparing taxes for five years, subject to the approval of the U.S. District Court for the Northern District of Georgia, and with restrictions afterward. His franchises prepared and filed over 105,000 tax returns last year.
Two defendants in the Raleigh-Durham case have agreed to a limited injunction against the franchise in North Carolina. The corporations that agreed to the restrictions include Smart Tax of Georgia, Smart Tax of North Carolina, Smart Tax Inc., Ask Tax, and So Far.
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