CHICAGO (abc24.com) - Illinois Attorney General Lisa Madigan has filed a lawsuit against Mo' Money Taxes for charging tax customers hidden costs and fees without their authorization.
According to court documents filed on March 14, prosecutors allege the Memphis-based tax preparation company made false representations of the services they provide, filed erroneous and unauthorized tax returns for their customers, charged hidden and exorbitant fees for services, charging for serviced not rendered, and not providing valid or timely refund checks.
"As a result of Defendants unfair and deceptive actions, over 400 consumers are still waiting for their refund checks," the document states. Prosecutors also asserted that Mo' Money targets their advertising towards low income and minority customers.
AG Madigan estimates at least $800,000 in hidden costs and fees were charged to Illinois customers. She also advised that customers contact the IRS immediately about their refund, and not deposit any refunds they receive from Mo' Money. Those who have cashed or deposited refunds processed by Mo' Money could be subject to an audit by the IRS due to the volume of returns filed by the business that were fraught with errors.
U.S. Congressmen Steve Cohen (D-TN), Bobby Scott (D-VA), Bennie Thompson (D-MS) and Scott Rigell (R-VA) want the House Judiciary Subcommittee on Crime to look into complaints by customers who say they haven't received their refunds after Mo' Money did their taxes.
"We believe that the firm has demonstrated that its operations pose a continuing threat to order and justice across the nation," the lawmakers wrote in a letter.
"We have received the information from the Illinois Attorney General," said Dominique Anderson, a corporate spokeswoman for Mo’ Money, via text.
"At this time we are focused on continuing to make sure all of our clients receive their refunds and any needed follow-up," She added. "We will be working closely with our legal to investigate all matters."
Mo' Money currently operates about 300 tax service offices in 17 states.