'Radioactive' Tax Returns Prompt Suspension by State

UPPER MARLBORO, MD – Maryland Comptroller Peter Franchot has suspended tax processing at a Washington, D.C. business, along with two firms in Prince George’s County, for submitting what he called “radioactive” tax returns.

Franchot’s office is probing what it says are problematic filings such as reporting business income when the taxpayer did not own business; requesting refunds significantly higher than in previous years; inflating and/or failing to document business expenses; claiming dependents when not providing 50 percent of support/care; and inflating wages and withholding information.

“It’s remarkable to me that despite the actions we have taken over the past three months, there continue to be preparers who are brazenly submitting radioactive state tax returns,” Franchot said in a news release. “Those out there who are still conducting themselves in this manner should be warned – we are going to catch up with them.”

As a result, the comptroller has suspended tax filing operations at these businesses in the area:

• Taxpoint Solution Accountants, 1401 Mercantile Lane, 3rd Floor, Upper Marlboro
• ICS Group LLC, 8855 Annapolis Road, Ste. 205, Lanham
• Tax Time LLC (also known as Speedy Tax Service), 1002 H St., NE, Washington, D.C.

That brings the total number of firms to 65 at 68 locations throughout the region and out of state that are now barred from filing either electronic or paper tax returns for Maryland taxpayers. Included in the ban are 23 Liberty Tax Service franchises.

Taxpayers should be suspicious if a tax preparer deducts fees from their refund, does not sign their tax return, or fails to include their preparer taxpayer identification number “P-TIN” on the return. If you suspect fraud, call the Comptroller’s Office at 1-800-638-2937 or 410-260-7980 in Central Maryland, or send an email TAXHELP@comp.state.md.us.

Find a full list of tax preparers the state has suspended from processing returns, visit the comptroller’s website at http://www.marylandtaxes.com/

The comptroller began processing returns in January, and the filing deadline for individual taxpayers is April 18.