Instant Tax Service was the 4th largest tax preparation service in the nation. In 2009, ITS was ranked #1 on Entrepreneur Magazine’s Top New Franchises list, #1 lowest cost franchise in the US, and #3 fastest-growing franchise. Their friendly website is still full of happy customers holding checks, beautiful offices, and hefty promises of instant revenue. But is it all true?
According to the federal government, Instant Tax Service is not the way to go. Due to their widespread habit of “fraud and deception” (according to U.S. District Judge Timothy S. Black), ITS Financial LLC has been ordered by a federal court judge to shut down its operations, an order which was said to be “necessary to protect the public and the Treasury.”
What exactly did they do to deserve such a stark and abrupt intervention from the feds? Well, just about every facet of their operations allegedly includes false and deceptive practices. They fabricated W-2s and Forms Schedule C to depict fabricated businesses and income. They filed federal income tax returns without the taxpayer’s consent and fraudulently omitted reportable income. They instructed their franchises to lie to the IRS in the event of an audit. They charged their customers junk fees (and even raised fees without the customers’ knowledge). They partnered with a lending business, claimed it was a ‘third party’ lender, and then encouraged customers to apply for clearly out-of-reach loans just to charge them with more junk fees once they were denied. According to the feds, the executives at ITS “knew of and has reason to know of this pervasive illegal conduct, but did virtually nothing to stop it, and, at times, directly or indirectly encouraged it.”
Yikes! One might think that selecting a large, reputable company would be a safe option for their business, but no. Clearly, even the nation’s largest companies can be just as fraudulent as (or even worse than) any shady no-name business.
Undoubtedly, choosing a trustworthy place to outsource work is vital to the life and success of your business. So, pick and partner with only those you can trust. The same is true for every aspect of your business, from contracting to hiring employees. I believe that integrity and trustworthiness will win in the long run, so don’t be tempted by risky, temporary, less-than-honest schemes or too-good-to-be-true promises. Cutting corners may look like a “get out of jail free” card, but dishonesty at any level will corrode the foundation of all you’ve worked so hard to build (and hiring someone else to cut corners for you is no different). As a small business owner myself, I strongly encourage you and your staff to seek out ethical and honorable practices and partners.
If you’re looking for a trustworthy, honest, yet economical accountant to partner with, feel free to contact us for a referral to someone we trust.
