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Injunction filed against tax preparation franchise

You may want to reconsider using Instant Tax Service to prepare your taxes this year.

Federal authorities said Friday the co-owners of the Las Vegas franchise, Benyam Tewolde and his wife, Yordanos Kidanits, along with the franchisee, Koraggio LLC, consented to a civil injunction that prevents Tewolde from preparing taxes and Kidanits and Koraggio are enjoined from violating federal tax laws and consumer protection laws.

The defendants agreed to the civil injunction without admitting to the allegations against them, which include helping employees prepare phony tax-return forms with fabricated businesses and income, claiming false filing status, selling deceptive loan products and filing tax returns without customer consent or authorization. Tewolde is also accused of preparing fraudulent returns.

Contact reporter Francis McCabe at fmccabe@reviewjournal.com or 702-380-1039.

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