{{short description|Tax preparation company}} {{use mdy dates|date=May 2022}} {{Infobox company | name = Liberty Tax | logo = File:Liberty Tax Franchise Logo.jpg | logo_size = | logo_upright = <!-- default = 1 --> | logo_alt = | logo_caption = | image = Liberty Tax at Cornell Square - Hillsboro, Oregon.JPG | image_size = | image_upright = <!-- default = 1 --> | image_alt = | image_caption = | trade_name = | native_name = | native_name_lang = <!-- Use ISO 639-1 code, e.g. "fr" for French. For multiple names in different languages, use {{Lang|[code]|[name]}} in native_name = and leave native_name_lang = empty. --> | romanized_name = | former_name = | type = Subsidiary | traded_as = | ISIN = | industry = | genre = | predecessor = <!-- or: | predecessors = --> | founded = {{start date and age|1997}}<br />{{Nowrap|Virginia Beach, Virginia, U.S.}} | founder = John Hewitt<ref>{{cite book |last1=Carter |first1=Gary W. |title=Getting Started in Tax Consulting |date=March 29, 2004 |publisher=Wiley |isbn=9780471201434 |url=https://books.google.com/books?id=8dY8Lxi8nS8C&dq=%22liberty+tax%22&pg=PA95 |access-date=April 17, 2022}}</ref> | defunct = <!-- {{End date|YYYY|MM|DD}} --> | fate = | successor = <!-- or: | successors = --> | hq_location = | hq_location_city = | hq_location_country = | num_locations = | num_locations_year = <!-- Year of num_locations data (if known) --> | area_served = <!-- or: | areas_served = --> | key_people = Scott Terrell, CEO | products = {{Plain list | * Tax preparation * Consumer loans *Business loans }} | production = | production_year = <!-- Year of production data (if known) --> | brands = | services = | revenue = | revenue_year = <!-- Year of revenue data (if known) --> | operating_income = | income_year = <!-- Year of operating_income data (if known) --> | net_income = <!-- or: | profit = --> | net_income_year = <!-- or: | profit_year = --><!-- Year of net_income/profit data (if known) --> | aum = <!-- Only for financial-service companies --> | assets = | assets_year = <!-- Year of assets data (if known) --> | equity = | equity_year = <!-- Year of equity data (if known) --> | owner = <!-- or: | owners = --> | members = | members_year = <!-- Year of members data (if known) --> | num_employees = | num_employees_year = <!-- Year of num_employees data (if known) --> | parent = BasePoint Capital | divisions = | subsid = | module = <!-- Used to embed other templates --> | ratio = <!-- Basel III ratio; used for banks only --> | rating = <!-- Credit rating; used for banks only --> | website = {{URL|https://www.libertytax.com/}} | footnotes = }}
'''Liberty Tax''' is a chain of franchise and company-owned locations that provide tax preparation services. It is known for its wavers, people in Statue of Liberty costumes and Uncle Sam costumes, used as a form of guerrilla marketing.<ref>{{cite web |title=Black Enterprise |url=https://books.google.com/books?id=HCgRAQAAMAAJ |website=Black Enterprise |publisher=The University of Michigan |access-date=April 17, 2022 |date=September 24, 2010}}</ref> It is the third largest institutional tax preparation service provider in the United States and second largest in Canada.
==History==
The company began in Canada in 1997 when John Hewitt, co-founder of Jackson Hewitt, acquired a Canadian tax franchisor, U&R Tax Depot. In 1998, the company became Liberty Tax Service and opened five offices in the United States.<ref>[http://www.skopem.com/liberty-tax-franchise-business-review/ Tax Service Franchise Reviews] {{webarchive|url=https://web.archive.org/web/20111028072756/http://www.skopem.com/liberty-tax-franchise-business-review/ |date=October 28, 2011 }}</ref> In 2012, it was named as a "Top 20 Franchise for the Buck" by Forbes, having grown to over 3,500 franchise locations.<ref>{{Cite web|url=https://www.forbes.com/sites/jjcolao/2012/02/08/top-20-franchises-for-the-buck/|title = Top 20 Franchises for the Buck|website = Forbes}}</ref>
In 2009, Liberty Tax was ordered to pay $1.3 million for engaging in unfair business practices related to its refund anticipation loans.<ref name="SFGATE">[http://www.sfgate.com/bayarea/article/Court-rules-against-Liberty-Tax-Service-4215104.php Court rules against Liberty Tax Service]</ref><ref>{{Cite web |url=http://www.kmtg.com/node/2630 |title=Attorney General Prevails In Lawsuit Against Income Tax Preparation Company |access-date=February 15, 2015 |archive-url=https://web.archive.org/web/20150216005052/http://www.kmtg.com/node/2630 |archive-date=February 16, 2015 |url-status=dead |df=mdy-all }}</ref> It later settled with the Department of Justice over allegations that its franchisee locations inflated some customer tax returns between 2013 and 2018.<ref>{{cite news |last1=Pierceall |first1=Kimberly |title=Liberty Tax to pay $3 million settlement to IRS, make fraud fixes |url=https://www.pilotonline.com/business/vp-bz-liberty-tax-settlement-20191204-vgoqtb24ozhp3nfocwow6mrmya-story.html |access-date=April 17, 2022 |newspaper=The Virginian-Pilot |date=December 3, 2019}}</ref> Founder Hewitt was terminated as CEO in September 2017 after Liberty Tax reported poor financial performance and was forced to close down dozens of its offices due to allegations of tax fraud.<ref>{{Cite news|url=https://www.accountingtoday.com/news/liberty-tax-ousts-john-hewitt-as-chairman-and-ceo|title=Liberty Tax ousts John Hewitt as CEO|work=Accounting Today|access-date=2018-01-22|language=en}}</ref> Hewitt formed a competing business, ATAX, in 2019<ref>{{cite news |url=https://www.franchisetimes.com/article_archive/forced-out-of-liberty-tax-service-founder-john-hewitt-will-try-again/article_8b9fa831-1eee-5f5a-892f-66b1ea99ce3f.html |title=Forced out of Liberty Tax Service, founder John Hewitt will try again |first=Beth |last=Ewen |date=January 24, 2019 |magazine=Franchise Times}}</ref> and was sued by Liberty for stealing business from them by using inside information.<ref>{{cite news |url=https://www.pilotonline.com/business/vp-bz-liberty-tax-sues-hewitt-20210209-i2f2bk3d6vhz3b6hs4phfusclu-story.html |title=Liberty Tax sues former founder, CEO accusing him of using confidential info to interfere |first=Kimberly |last=Pierceall |newspaper=The Virginian-Pilot |date=February 9, 2021}}</ref>
In 2019, Liberty Tax became a subsidiary of the Franchise Group.<ref>{{cite web |last1=Thomas |first1=Brad |title=Franchise Group: A New Strong Buy That Should Climb To The Sky |url=https://seekingalpha.com/article/4455476-franchise-group-a-new-strong-buy-that-should-climb-to-the-sky |website=Seeking Alpha |access-date=April 17, 2022 |date=September 16, 2021}}</ref> In 2021 it was purchased by and became a subsidiary of NextPoint Financial.<ref>{{cite news |title=Virginia Beach's Liberty Tax to be sold for $243 million |url=https://www.pilotonline.com/business/consumer/vp-bz-liberty-tax-loan-0223-20210222-xlbmt7gafbgb3gkkguv4pefwhm-story.html |access-date=April 17, 2022 |newspaper=The Virginian-Pilot |first=Kimberly |last=Pierceall |date=February 22, 2021}}</ref> The same year it was combined with LoanMe, a personal and small business loan company based in California.<ref>{{cite news |title=Kansas City-based Lead Bank forms two new fintech partnerships |url=https://www.bizjournals.com/kansascity/inno/stories/news/2021/09/23/lead-bank-fintech-partnerships-loans-networking.html |first=James |last=Dornbrook |date=September 23, 2021 |work=Kansas City Business Journal |url-access=subscription}}</ref> As of 2021, it is the third largest institutional tax preparation service provider in the United States and second largest in Canada.<ref>{{cite web |title=Liberty Tax Service Set for Supercharged Growth as Winning Franchise Opportunity |url=https://www.franchising.com/sponsored/liberty_tax_service_set_for_supercharged_growth_as_winning_franchise_opport.html |website=Franchising.com |access-date=April 17, 2022}}</ref>
In July 2023, NextPoint Financial, Liberty Tax's parent, filed for bankruptcy in Canada, and Chapter 15 bankruptcy in the United States.<ref>{{Cite web|url=https://www.accountingtoday.com/news/liberty-tax-parent-restructures-after-bankruptcy|title=Liberty Tax parent restructures after bankruptcy|date=July 26, 2023|access-date=February 4, 2024|website=Accounting Today|language=en}}</ref> In January 2024, NextPoint Financial completed a going-concern sale transaction to BP Commercial Funding Trust, Series SPL-X. Liberty Tax will continue to operate normally under the new ownership.<ref>{{Cite web|url=https://finance.yahoo.com/news/nextpoint-financial-completes-going-concern-222900442.html|title=NextPoint Financial Completes Going Concern Sale Transaction|date=January 2, 2024|access-date=February 4, 2024|website=Yahoo! Finance|language=en}}</ref>
==References== {{reflist}}
==External links== * {{official website|https://www.libertytax.com/}} * [https://www.nextpointfinancial.com/ NextPoint Financial]
Category:Tax preparation companies of the United States Category:Tax preparation companies of Canada Category:Financial services companies established in 1997 Category:American companies established in 1997 Category:Companies that have filed for bankruptcy in Canada Category:Companies that have filed for Chapter 15 bankruptcy Category:Companies based in Virginia Beach, Virginia Category:Franchises