Liberty Tax president chides IRS over new elimination of debt indicator

Posted on August 27, 2010 by Franchise Gator Admin

In a strongly worded letter to the Internal Revenue Service, Liberty Tax Service founder and CEO John Hewitt reacted to the recent move to discontinue the debt indicator. According to Hewitt, without the indicator, tax preparers will no longer be able to figure out how much a customer can expect to get in refunds as easily as they could before.

He also said that the franchise would not have as easy a time when it decides which customers to approve for Refund Anticipation Loan options.

"It’s a disappointing decision for consumers. The demand for Refund Anticipation Loans is customer-driven. We are emerging from the greatest financial downturn since the Great Depression," said Hewitt. "This really isn’t the time to take financial options away from those who choose them, and more importantly need them."

The news hasn't been all negative for the tax preparation franchise in recent weeks. PODER magazine recently listed the franchise as one of its Top 26 franchises for the Hispanic community. The company received the honor based on "historical performance, brand identification, franchisee satisfaction, training, ongoing support and financial stability."