Liberty Tax
| Company type | Franchise and company-owned outlets |
|---|---|
| Industry | Tax preparation services |
| Founded | 1997 |
| Founder | John Hewitt |
| Headquarters | Virginia Beach , United States |
Area served | United States, Canada |
| Products | Tax preparation services |
| Parent | BP Commercial Funding Trust, Series SPL-X |
Liberty Tax operates as a network of both franchise and company-owned outlets specializing in tax preparation services. Noted for its unique guerrilla marketing tactics involving individuals dressed as the Statue of Liberty and Uncle Sam, it holds the position of the third-largest tax preparation firm in the United States and ranks second in Canada.
History
The origins of the company trace back to Canada in 1997 when John Hewitt, who co-founded Jackson Hewitt, purchased the Canadian tax franchise U&R Tax Depot. The following year, it rebranded to Liberty Tax Service and launched five locations across the United States. By 2012, Liberty Tax had expanded to more than 3,500 franchise sites and earned recognition from Forbes as a "Top 20 Franchise for the Buck."
In 2009, Liberty Tax faced a penalty of $1.3 million due to unfair business practices connected with refund anticipation loans. Subsequently, it reached a settlement with the Department of Justice over claims that certain franchise branches exaggerated customer tax returns during the period from 2013 to 2018. Due to financial difficulties and office shutdowns linked to tax fraud accusations, founder Hewitt was dismissed from his CEO role in September 2017. He then established a rival company, ATAX, in 2019, which led Liberty Tax to initiate legal action against him for allegedly using proprietary information to compete.
Liberty Tax became part of the Franchise Group in 2019. Two years later, NextPoint Financial acquired the company for $243 million and merged it with LoanMe, a personal and small business lending firm based in California. As of 2021, Liberty Tax maintained its status as the third-largest institutional tax preparation provider in the U.S. and second-largest in Canada.
In July 2023, NextPoint Financial sought bankruptcy protection in Canada and filed for Chapter 15 bankruptcy in the United States. By January 2024, NextPoint completed a going-concern transaction transferring ownership to BP Commercial Funding Trust, Series SPL-X, allowing Liberty Tax to continue its operations under new management.
External links
- Articles with short description
- Tax preparation companies of the United States
- Tax preparation companies of Canada
- Financial services companies established in 1997
- American companies established in 1997
- Companies that have filed for bankruptcy in Canada
- Companies that have filed for Chapter 15 bankruptcy
- Companies based in Virginia Beach, Virginia
- Franchises