Tax preparing company settles with IRS on lawsuit

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Updated: March 4, 2012 8:15AM

A Gary tax preparation business’ lawsuit against the IRS has been dismissed after the business filed a motion saying it had reached an agreement with the government.

John Newlin filed the suit last month in U.S. District Court after he discovered the IRS had banned his business, Quick Sam Tax Refunds, from filing online income tax returns.

The FBI had investigated employees of Quick Sam recently and charged four of them with lying on tax returns. However, according to the suit, no one ever banned Quick Sam from continuing to operate. The IRS initiated the online ban last fall, but Newlin never was notified, the lawsuit said. It wasn’t until he tried to file returns online in January that he discovered what had happened.

Quick Sam’s motion to dismiss says the government “issued a revised notice of suspension.”