Tax filing business claims IRS won’t let it do work online

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Updated: January 19, 2012 6:57PM

Gary business Quick Sam Tax Refund, which has been under investigation after four of its employees were charged with lying on federal tax returns, is suing to force the IRS to let it file online tax returns for customers.

The business, at 3812 Broadway, filed the lawsuit Wednesday in the U.S. District Court in Hammond, claiming that the IRS in October sent the owner, John Newlin, a letter saying it was revoking his company’s right to file tax returns online. However, the lawsuit says the letter was sent to an old address for Newlin and was never forwarded on to him, so he didn’t discover about the revocation until Jan. 13, when he tried to file some tax returns online and was told he couldn’t.

Newlin claims in the suit that the IRS’ action was done in connection to a criminal investigation into his business by federal prosecutors. Four of his employees were charged last year in federal court with lying on tax returns they filled out for clients. All four have pleaded guilty.

The lawsuit says that the business’ attorney spoke with the federal prosecutor, Jill Koster, who is overseeing the criminal case, and she said she was aware of what the IRS did but that she hadn’t ordered it.

“(Assistant U.S. Attorney) Koster stated that she had been aware of the suspension decision because there had been discussion within the law enforcement authorities that they were surprised that Quick Sam had continued to display a sign in its business window reflecting that it is an authorized e-File provider,” the suit says.

The suit says about 80 percent of Quick Sam’s business comes from tax returns filed online. Along with the lawsuit, the business also filed a motion for a temporary restraining order against the IRS so Quick Sam can again file tax returns online. However, U.S. Judge Philip Simon ruled against the motion, saying that Quick Sam should continue to try to contact the IRS first about resolving the matter. He set another hearing on the matter for Tuesday.