The government complaints alleged that the franchised corporations
"created and fostered a business environment in which fraudulent tax
return preparation is encouraged and flourishes."
If federal judges in each city agree, the bans go into effect
immediately in Chicago, Detroit and Atlanta. A fourth location, in
Raleigh-Durham,N.C., will be allowed to continue but with restrictions and
monitoring.
Several individuals also were dealt with, including Farrukh Sohail, who
owns all or part of each of the corporations involved.
Jackson Hewitt Tax Service of Parsippany, N.J. is the second largest
tax preparation firm in the United States.