INSTANT TAX SERVICE Scam Artist Dallas, Texas

In December 2010, this company was running a television advertisement for the RAL (Refund Anticipation Loan).  The advertisement stated that if individuals would bring in their last paycheck stub for 2010, everyone would be approved for the loan.  When I got there, I was told the way it worked was that they would estimate how much of a refund you would get from the taxes withheld from your last paycheck stub.  If you got approved for the loan, you would get the RAL right then and you would come back in when you get your W-2 and have your actual income tax done and filed with the IRS.  If you didn't get approved for the loan, your taxes would not be filed.

After they were done estimating my taxes, I was given a document to sign.  I THOUGHT what I was signing was for the loan.  They then handed me a debit/prepaid card and told me my loan would be on that card.  They told me they didn't know how much of a loan I would be approved for and that I would just have to activate the card and find out. 

I left and went out to my car and called the number on the card.  The recording came on and said there was a balance of $10.00 on the card.  I then went back inside and told them there was only $10.00 on the card.  They told me that was how much of a loan I was approved for.  I told them $10.00 was not a loan and that I didn't want it.  I handed the card back to them.  I then spoke to the manager and told him that I would just go somewhere else and get my taxes done.  The manager (A.D.) told me that I can't change my mind because I already signed tax forms.  I told him I only signed an estimate and that they couldn't file an estimated tax return with the federal government.  He told me that they were going to file the estimate with the IRS anyway.

On January 28, 2011, I got a text message stating that "a deposit in the amount of $1,448.05 had been loaded onto your Insight card from US Treasury 220."  I then phoned the IRS to determine if this was legit or a scam.  The IRS told me that my income taxes had been filed by Instant Tax Service and my refund was in the amount of $2,058, but I only received $1,448.05 of that refund.  THEY CHARGED ME $610.00 TO PREPARE MY RETURN which is highway robbery.  They filed my taxes anyway and had the refund put on the debit/prepaid card that I had given back to them.

I phoned Instant Tax Service corporate office in Dayton, Ohio and informed them of what had happened and they told me there was nothing they could do because it was an individual franchise.  I find that hard to believe because there should still be laws and rules that even the individual locations are governed by.  The corporate office informed me that the $10.00 they were trying to pass off as a loan WAS NOT A LOAN, but was just a "thank you" to individuals who came in to have their tax returns done.

I went to pick up the card with my refund on it on or about February 3, 2011.  When I arrived, I asked to have a copy of my tax return that they filed with the IRS.  They REFUSED to give me a copy of what I signed and what they filed with the IRS and stated that I would need to bring in my W-2 form before they would release copies of what I signed.

I asked them what difference does my W-2 make now since they had already filed an ESTIMATED tax return with the IRS.  They told me that they needed the W-2 to put in my file with my return. I told them I was not going to give them my W-2 because there was no guarantee they wouldn't file an amended return and charge me additional fees. 

I ended up having to go to the IRS to get a copy of what they filed.  I will have to have an amended return prepared to correct what they screwed up.  On my last paycheck stub for 2011, all my federal and fica taxes were lumped together, so I don't rightfully know how they arrived at the federal taxes withheld figure on the return.  The return they filed shows Federal Withholding Taxes to be $3,696.  My W-2 form shows my Federal Withholding Taxes to be way less than that.  They grossly over-estimated my withholding taxes.

I have copies of my last paycheck stub from 2010, my W-2 forms and the tax return they filed.

I know that there have been laws broken here, and it is my intention to report this fraudulent activity in writing to the IRS, on this site, and any other means necessary so that Instant Tax Service does not get away with this type of business activity.