Instant Tax Service lied to customers, now must pay-up

NORTH CAROLINA — A tax service that customers said lied to them now has to pay up. Since January, Eyewitness News has spoken to dozens of people outside Instant Tax locations demanding money the company promised them.

On Monday, the state announced it agreed with the customers complaints and punished Instant Tax.

Eyewitness news shared this information with customers who've waited for answers for months. Three Instant Tax locations have to pay $60,000 in fines and the company must change some of its policies.

At the Gastonia Instant Tax Service on Monday, no one answered the door. The operation used to be in suites A and B, but now suite B is leased to a different business.

"When we moved in, Instant Tax moved out," said Michael Nelson.

Eyewitness News checked the company's two Charlotte locations off Freedom Drive and West Boulevard. They said they were open, but the doors were locked and the lights were out.

For several weeks earlier this year Eyewitness News covered angry customers in long lines outside all three businesses.

Eden Kidane owns the locations.

A judge ordered her to change her practices and pay $60,000 for consumer refunds, education and enforcement efforts.

People who used Instant Tax service were pleased to hear about the court's decision.

"I am glad they took action against them," said Stephanie Peters.

Peters said she went to Instant Tax for a loan, that they filed her taxes without her permission and charged her $800.

The state said that's four times more than what other preparers charge.

"They should no longer be allowed to be in business," said Peters.

"I personally think that they are crooks," said customer Joshua Miller.

Miller said he was also overcharged and he now wants the operators of Instant Tax Service to be charged criminally.

"They should be arrested for what they did. They took a lot of people for their money," said Miller.

The Attorney General's office said it's up to local district attorney's to file criminal charges.

They said if Instant Tax Service reopens stores they will have to show their prices for service in writing.

WSOC