Business ProfileforFreedom Insurance Services

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

It came to BBB's attention that a government action complaint was filed against defendents Steven M. Doletzsky, V.J.S.D. Services LLC, Michael A. Garno, Michael A. Bass, and Bad Wolf Taxes and Accounting LLC.
On August 7, 2019, it is ordered and adjudged against Michael A Bass and in favor of the United States for $260,000, under Count IV of the complaint (seeking disgorgement of ill-gotten gains from filing federal tax returns that claim improper tax refunds, understate customers' federal tax liabilities, or otherwise include false or fraudulent claims) for which sum let execution issue. (Case no: 8:18-cv-780-T-36CPT)

On April 3, 2018, the United States has sued Steven M. Doletzky, Michael A. Garno, Michael A. Bass, and Florida corporations they used to operate Liberty Tax Service stores in the St. Petersburg, Florida area. (Case 8:18-cv-00780-CEH-CPT). The complaint seeks to permanently bar Doletzky, Garno, and Bass from preparing federal tax returns for others. In addition, the complaint seeks orders from the federal court requiring all defendants to disgorge to the United States any ill-gotten fees Doletzky, Bass, and Garno charged customers for the preparation of false or fraudulent federal tax returns.

According to the complaint, as part of his tax fraud scheme, Doletzky recruited homeless individuals as customers by offering food, beverages, and false promises of assistance with obtaining welfare benefits on their behalf. Doletzky allegedly obtained vans to transport homeless individuals to his Liberty Tax Service stores from locations in the St. Petersburg area where homeless people were known to congregate. Doletzky then directed others to prepare false tax returns on behalf of these homeless individuals that claimed fraudulent tax refunds, the bulk of which Doletzky retained as tax preparation fees, the complaint alleges.

According to the lawsuit, Doletzky directed the preparation of false or fraudulent tax returns at his Liberty Tax Service stores and provided tax preparation training to Garno and Bass before they became independent Liberty Tax Service franchisees. The complaint alleges that Doletzky, Garno, and Bass directed their preparers to prepare federal income tax returns that claimed fraudulent claims for tax credits, including for education credits and the Earned Income Tax Credit (EITC). For example, from 2013 to 2015, Doletzky, Garno, and Bass' Liberty Tax Service stores allegedly prepared and filed federal income tax returns that claimed over 1,250 separate, false claims for education credits.