Now this will get interesting

[taxguykarl]

This was apparently some time in the making.

BG/ Last year the (now ex) TM was caught on video removing boxes of files after the end of the last tax season. NBD as the office is closed for the off-season, or so the the franchise owner (FO) thought. /BG

Fast forward to this season:
XTM has opened her own tax prep place. Major problem: Our contracts have non-compete clauses which specify that 1) we are not permitted to solicit our clients 2) our location must be at least 30 miles from ANY location owned by FO.

XTM was soliciting in the strip mall where my office opertates. Her store is within 5 miles of the closest one owned by FO. I must say XTM was pretty audacious about this: trying to recruit those working for FO (she actually succeded with one office); a website with the location.

SM was late Saturday because she had to give a deposition on what she saw and knew (one of her steadies tipped her off). FO has lawyered up and served XTM with some legal papers. XTM has some 'spaining to do.

The fireworks should start any day now.....

[mosspack1]

Well obviously she did not know that. You can not expect her to read a contract. ::sarcasm off::

One would think after reading about all the EWs on this site the size of the brass ones some people walk aroud with would no longer surprise me but this one sure did. Would it make me a bad person to hope she winds up neck deep in some brown stuff?

[taxguykarl]

Would it make me a bad person to hope she winds up neck deep in some brown stuff?

Not at all as she was in deep excrement from the get-go.
Her PTIN (essentialy a temporary license) was under some kind of suspension over an outstanding tax debt, under IRS regs she can't prep a return (other than her own) or supervise such preparation. Between this and breach of contract, it will seriously suck to be her.
As for the others that she somehow managed to recruit: they too are likely to be in breach of contract and definately burned their bridges.

[mosspack1]

Geez, she has bigger brass ones than I thought.

[Victory Sabre]

Wow, just wow. I hope you're able to get more updates on this situation.

[taxguykarl]

Update of sorts:

XTM secured a continuance. She claimed to have only done 30 returns before being served with the injuction. FO still lawyered up.

[Teskeria]

Query - Will the people who's returns she illegally did be audited because or that? or will their returns be disqualified and they will have to do them again?

[wolfie]

Query - Will the people who's returns she illegally did be audited because or that? or will their returns be disqualified and they will have to do them again?

I doubt it. From what has been posted, it looks like the illegality involved is a violation of a non-compete agreement between this person and their former employer, which should be of no interest to the IRS.

[Teskeria]

Her PTIN (essentialy a temporary license) was under some kind of suspension over an outstanding tax debt, under IRS regs she can't prep a return (other than her own) or supervise such preparation

This is the part that makes me wonder if they will have to refile.

[taxguykarl]

Query - Will the people who's returns she illegally did be audited because or that? or will their returns be disqualified and they will have to do them again?

No automatic audits; however, those people are all on their own (as far as dealing with the IRS goes) as if they prepped their own returns. They have no cover of any kind.

[Pixilated]

Definitely hoping for updates ...

[taxguykarl]

Definitely hoping for updates ...

OK, here you go:
XTM was found of boasting of connections with our 'burbs government (she had done the mayor's return for free more than once). Well the village posted a C&D order on the front door.
The FO and SM straightened out this matter within an hour. The video surveilance clearly showed village officials, but there is still the suspicion that XTM was behind that.
Updates as they become available....