Tax preparer holds refund checks

NORFOLK, Va. (WAVY) - Gladys Johnson went to Mo' Money Taxes Wednesday to pick up her nearly $4,000 refund check. She found the business closed. But, she knows they have her money.

"I contacted the IRS on Monday," Johnson said. "They told me mine was direct deposited into the banking account."

Keith Hill, owner of the Mo Money Taxes franchise on East Little Creek Road in Norfolk, acknowledges Johnson's money is in his company's bank account. But, he says a computer glitch would not allow his business to cut checks for at least 20 customers.

When WAVY.com confronted Hill about Johnson's check Thursday afternoon, he said it would be ready Friday morning.

"Her money is getting printed out now," Hill said. "We had a glitch going on with our software, connected to the bank that didn't get the right signal. So we had the money in there, but we didn't know whose money actually came."

Hill says employee paychecks were also affected by the glitch.

"I don't want no more explanation." Johnson said. "I want my money. That's what I want."

WAVY.com did some digging and found Mo' Money Taxes is a national company. None of the franchise locations listed on the Better Business Bureau web site are accredited, meaning they do not get the BBB's seal of approval when it comes to good business practices. Many on the list received an "F" rating.

Two states have taken public action against Mo' Money Taxes. In Arkansas, Mo' Money Taxes had to pay $25,000 in fines for illegal business practices. 

"I don't blame nobody for being concerned," Hill said. "We know people got bills and situations they need to take care of."

Hill assured WAVY.com Johnson's check will be available to her Friday morning.

The Virginia Office of Consumer Affairs says no formal complaints about Mo' Money Taxes have been filed with the office.

The Attorney General's Office says there is no history of legal action with the company in the Commonwealth.

Mo' Money Taxes has eight locations in Hampton Roads, according to a recent flier.

RESOURCES

• To check the status of your refund on the IRS Web site, click here.
• To make acomplaint against a tax preparer, contact the Attorney General's Office
• 10 On Your Side Tax Tips