NASHVILLE, Tenn. (Legal Newsline) - Tennessee Attorney General Bob Cooper announced on Friday that his office has filed a contempt petition against a tax preparer and its co-defendants after they allegedly failed to meet the terms of a 2008 agreement.
Cooper filed the contempt petition in Williamson County Chancery Court on Thursday against JK Harris, manager John K. Harris and sister company Financial Recovery Systems.
The petition alleges that the defendants violated a 2008 agreement and have continued to mislead consumers with claims that the companies' services would be provided by "former IRS agents," "tax professionals," "tax experts" and similar claims without required disclosures that those performing the services would be unqualified for those titles.
JK Harris allegedly advertised that it had over 450 offices worldwide, including six in Tennessee, though the only office to handle consumers' files was in North Charleston, S.C. The other offices allegedly consist of sales representatives alone.
Additionally, JK Harris allegedly misrepresented that consumers were qualified for the IRS Offer in Compromise program when they were not in fact qualified. The complaint also alleges that the company continued to accept payments from consumers who did not qualify for the program.
Finally, the petition alleges that JK Harris has continued to represent that it would perform services in a specific manner that it has not actually provided while continuing to bill or charge consumers for services it did not perform.