Wednesday, March 21, 2012

Charlotte Tax Preparer Shut Down

Charlotte Tax Preparer Shut Down:
After a series of Eyewitness News reports, North Carolina investigators shut down a local tax preparer.

The North Carolina Attorney General's office ruled Instant Tax Service was deceptive and broke the law.

"Finally. Thank God," Shantay Goldston said when she learned about the injunction.

Eyewitness News first broke the story in January when hundreds of people lined up outside Instant Tax Service demanding their money.

According to court documents, the company got customers to take out instant loans, and then workers filed returns without their knowledge or permission. Often times, the returns were inaccurate. The state found workers did not disclose customers about prices upfront, and then charged exorbitant fees.

Goldston ended up paying $890 to file her taxes and she still hasn't received her state return.

"It's not right. They take away from a lot of people who think they are a legitimate business," Goldston said.

The complaint said the owner, Eden Kidane, preyed on people in poorer areas in and near Charlotte.

The state filed a permanent injunction against three locations Kidane owns, including the businesses on Freedom Drive and West Boulevard in Charlotte, and East Franklin Boulevard in Gastonia.

While Goldston was relieved to hear the company was being shut down, she's dealing with another headache now.

"My federal was even wrong because I just got something from the IRS saying I'm being audited," she said.

Because of state law, the company will have to repay many customers. Instant Tax Service is liable for civil penalties in an amount equal to three times the amount of the refund anticipation loan (RAL).

If you were a victim, call the Attorney General's office at 1-877-NO-SCAM.