Non-Profit Group Alleges Tax Fraud

If you ask Stephen Black, you better pay attention when getting your taxes filed.

“We found a shocking amount of not just negligence and mistakes but also willful fraud,” says Impact Alabama founder Stephen Black. He says his agency sent undercover men and women into 13 different tax prep services across the state like H&R Block in Birmingham, and Jackson Hewitt and Mo Money Taxes in Montgomery. He says 11 applied the earned income tax credit incorrectly, giving it to parents that didn't deserve it.

“That’s' how they increase their own revenue they get more money the bigger the return they create for the person in front of them with very little regard for the true interest of the child and the laws of the United States,” says Black. He says a majority of low income Alabamians use tax preparation services. Black says don't be afraid to ask questions.

“They need to ask how much experience that preparer has and what kind of history they have they need to make sure the tax preparer understands all the details of their personal life that's relevant and they need to make sure they sign the return,” says Black. While Black says you have to be careful when getting taxes prepared there are other options available.

Evelyn Holt is the local coordinator for the AARP Tax Aid Program. It'll be at the Via Health, Fitness and Enrichment center in February. It's one of several non-profit, free services to help low income people with returns. For more information on that program you can call 251-445-5243. For more information on other non-profit tax services you can call Impact Alabama’s Hotline 1-888-99-TAX-AL. You can also see Impact Alabama’s study Impact Alabama's Study.

At deadline, H&R Block sent an e-mail regarding the alleged incident at one of their Birmingham locations. The statement said that they have a zero tolerance policy for intentional misstatements or errors. The statement says they are investigating.

9:30 PM CST Update: Earlier this evening we recieved this e-mail statement from Jackson Hewitt spokesman Sheila Cort:

Jackson Hewitt is committed to and expects nothing less than accurate, quality tax preparation and the highest levels of customer service. We are aware of the report and are aggressively reviewing this matter with our franchised location.--End of Statement.