I'm pretty sure the local Jackson Hewitt offices are franchises. Th father of a friend of mine used to own (and may still own) the local franchise.

It's interesting (and somewhat disturbing) how the ripple effect of bad PR related to one franchisee can affect the company, their shareholders, other franchisees who could likely be small business people with everything they own tied up in their franchise, not to mention consumer confidence in the company and its services.

Thanks for that comment, Randy.

The Knoxville area Jackson Hewitt locations are independently owned and managed. I have worked for Jackson Hewitt off and on for the past several years and currently manage the Maryville office located in the Moroney's Corner shopping center. Why I haven't met all of the staff in the Knoxville area which extends from Sevierville to Morristown to Norris to Harriman to Loudon to Maryville, I have met many and I can't think of one who would be involved in intentionally filing a fraudulent return.

Jackson Hewitt’s proprietary software requires us to ask an appropriate series of questions to ensure the accuracy of the return. That’s not to say that there have not been times that we’ve had the gut feeling that the taxpayer is lying; however, as the article in the NS states, we don’t audit the information. About all we can do is explain the question to the taxpayer; if taxpayer insists the information is correct, there isn’t much we can do other than report it. The taxpayer signs more than one document stating the information they have reported is accurate.

In addition, the preparer penalties, I suspect would more that offset any income that either the preparer or the franchise owner might earn preparing an average tax return. It’s hard to believe that the typical JH trained employee would be involved in the alleged fraud. My guess would be that it involves a select few employees who the franchise holder felt could be trusted.

In short, Jackson Hewitt requires it’s employees to prepare returns in a professional manner and guarantees the accuracy of the return based on the information provided.

Thanks Stan for your comments. Jackson Hewitt's philosophy is universal in the traning, proprietary software, accuracy and being professional. I thank you for comments regarding the preparer.

I am a supervisor at an Atlanta office, which is owned by the franchisee involved in this case. I'm sadden as well as shocked about the situation. However, I am glad to know that there is someone out there that knows about "gut feelings" and the recourses for the preparer of fradulent returns.

I can't speak on what transpired, because it's news to me just as it is to the rest of America. I make it a personal & professional practice to follow "due diligence". In my ten years as a Jackson Hewitt employee, I have learned that it doesn't hurt to turn away a customer if I knowingly know the info is fraudlent or they ask me to do anything as such. As previously mentioned, there are definitely times you may be limited in what you can do as a preparer, but the multitude of documents/pages the taxpayer signs affirming the information provided is accurate is supposedly to provide some protection for the preparer in the event the information is not accurate.

The alleged incidents may be isolated, however the whole franchise is taking a hit for it. Unfortunately, our society will look at the company as whole. I hope that everyone that is keeping a close watch on this case keeps in mind that not all employees of Jackson Hewitt and/or this franchisee are involved. But as the saying goes one rotten apple can spoil the whole barrell.

Tax Preparers, who work independently, for a company /franchisee, whether they're an enrolled agent or not certified at all, take some risks in preparing returns when providing a service to the general public. It is that person's responsibility to be accurate, ethical and professional in their practices.