Citing Fraud Suspicions, Franchot Suspends Electronic Tax Filing From 7 Baltimore-Area Locations

Comptroller Peter Franchot on Wednesday said his office will suspend the processing of electronic tax returns from several Baltimore-area Liberty Tax Service locations, after a number of returns showed questionable information.

The affected locations are at 2400 E. Monument St. , 7730 Wise Ave. (in Dundalk), 1742 W. North Ave. , 2401 Liberty Heights Ave., 1808 Pennsylvania Ave., 3308 Greenmount Ave. and 503 W. Lexington St. All except the Wise Avenue location are in Baltimore.

All have been sent written notice of the decision, and Attorney General Brian Frosh, labor regulators and other tax agencies have been notified as well.

What was suspicious enough to cause Franchot to take this step? Taxpayers would report business income despite not owning a business. Refund amounts requested were much higher than previous years. Business expenses weren't documented. Dependents were claimed when the taxpayers didn't provide the required minimum 50 percent support. Some taxpayers would inflate wages and withhold income information.

Franchot's office advises taxpayers to review their returns and be suspicious if a tax preparer deducts fees from the refund to be deposited into the preparer's account; does not sign the return; or failes to include the preparer's taxpayer identification number. Anyone suspecting fraud is asked to report it to the comptroller at 1-800-MD-TAXES or 410-26-7980.

The Liberty Tax decision was one of the topics Comptroller Franchot addressed Wednesday during an interview with Mary Beth Marsden on Maryland's News Now.