Instant Tax Service
| Type | Private |
|---|---|
| Founded | Dayton, Ohio USA, (2000) |
| Headquarters | Dayton, Ohio |
| Key people | CEO Fesum Ogbazion CFO Pete Samborsky |
| Products | Tax preparation Tax preparation courses |
| Website | Instanttaxservice.com |
Instant Tax Service is the third fastest growing income tax franchise company in the United States,[1] with hundreds of locations in 35 states. Instant Tax Service is based out of Dayton, Ohio and specializes in tax preparation, electronic filing, and refund anticipation loan services.
Founded in 2000 by Fez Ogbazion, the company is actually the second venture for Ogbazion, who cut his teeth in the tax industry with the founding of Instant Refund Tax Service in Cincinnati, OH in 1994. Ogbazion sold Instant Refund Tax Service to Fortune 500 giant Jackson Hewitt in 1999 and used the proceeds from the sale to start Instant Tax Service.
In 2009, Instant Tax Service was ranked #93 on the nation's top 500 fastest growing companies list by Inc. Magazine.[2] The company also ranked #1 on Entrepreneur Magazine's Top New Franchises list and the #1 lowest cost franchise in the United States in 2009.[3]
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[edit] History
Fesum Berhane Ogbazion, who came to the United States with his family in 1982 from Ethiopia, opened his first tax office in 1994, Instant Refund Tax Service, while pursuing a degree in accounting and finance at the University of Cincinnati. He strategically chose a former H&R Block tax office located just down the street from his parents’ home. The office was just 400 sq. ft. He prepared over 600 tax returns his first year, but barely broke even. However, over the next five years, Ogbazion's business prospered. He opened 26 additional locations throughout the Cincinnati, Ohio and Northern Kentucky area.
In 1999, sensing a major competitor in the area, Jackson Hewitt offered to buy Instant Refund Tax Service from Ogbazion for a reported $3 million.[citation needed] In the year 2000 and in accordance with his non-compete agreement, Ogbazion moved to Dayton, OH and rebuilt his business from the ground up. Instant Tax Service began franchising in 2004.
[edit] Controversy
On April 20, 2007, the Internal Revenue Service investigated allegations of fraud involving eight franchise-owned Instant Tax Service locations in Missouri.[4][5] Though no charges were made, and no decision reached, Instant Tax Service terminated its contract with the franchisee[6] saying the franchisee had expanded its business too quickly. The company no longer permits franchisees to operate more than a pre-determined number of storefronts during their first and second year.[7]
In June 2010, the Internal Revenue Service returned all property and files to the Missouri franchisee with no further action taken.
[edit] References
- ^ "Entrepreneur 3rd fastest in growth ranking". http://www.entrepreneur.com/franzone/fastestgrowing/index.html. Retrieved 2009-08-12.
- ^ "Inc. Magazine ranking". 2009-08-12. http://dayton.bizjournals.com/dayton/stories/2009/08/10/daily43.html?ed=2009-08-12&ana=e_du_pap. Retrieved 2009-08-12.
- ^ "Entrepreneur rankings". http://www.instanttaxservice.com/. Retrieved 2009-08-12.
- ^ "IRS Raids Local Tax Service Businesses" Ozarksfirst.com Apr 20, 2007
- ^ "IRS raids Instant Tax Service offices in Springfield" KY3.com Apr 20, 2007
- ^ "Affidavit of Special Agent Nancy Cummins Internal Revenue Service, Criminal Investigation". Bimedia.net. April 19, 2007
- ^ "Press Release Aug 1, 2008" Instanttaxservice.com/press August 01, 2008
Before doing any business with this company check the public records here: http://www.clerk.co.montgomery.oh.us/pro/
The company name is ITS financial or TCA financial. There are many judgements against them several unsatisfied tax liens.
