Instant Tax Service
Encyclopedia
Instant Tax Service is the third fastest growing income tax franchise
company in the United States, 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
. 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.
, 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. 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.
investigated allegations of fraud involving eight franchise-owned Instant Tax Service locations in Missouri
. Though no charges were made, and no decision reached, Instant Tax Service terminated its contract with the franchisee 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.
In June of 2010, the Internal Revenue Service
returned all property and files to the Missouri
franchisee with no further action taken.
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
company in the United States, with hundreds of locations in 35 states. Instant Tax Service is based out of Dayton, Ohio
Dayton, Ohio
Dayton is the 6th largest city in the U.S. state of Ohio and the county seat of Montgomery County, the fifth most populous county in the state. The population was 141,527 at the 2010 census. The Dayton Metropolitan Statistical Area had a population of 841,502 in the 2010 census...
and specializes in tax preparation
Tax preparation
Tax preparation is the process of preparing tax returns, often income tax returns, often for a person other than the taxpayer, and generally for compensation. Tax preparation may be done by the taxpayer with or without the help of tax preparation software and online services...
, electronic filing, and refund anticipation loan
Refund Anticipation Loan
A refund anticipation loan is a short-term consumer loan secured by a taxpayer’s expected tax refund, and designed to offer customers quicker access to funds than waiting for their tax refund...
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
Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
giant Jackson Hewitt
Jackson Hewitt
Jackson Hewitt Tax Service Inc. is the second largest tax preparation service in the United States; responsible for preparing over 2.2 million computerized federal, state, and local individual income tax returns each year. Based in Parsippany, New Jersey, the company currently operates more than...
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
Inc. (magazine)
Inc. magazine, founded in 1979 and based in New York City, is a monthly publication focused on growing companies. The magazine publishes an annual list of the 500 fastest-growing private companies in the U.S., the "Inc...
. The company also ranked #1 on Entrepreneur Magazine
Entrepreneur Magazine
Entrepreneur is a publication that carries news stories about entrepreneurialism, small business management, and business opportunities. It is published by Entrepreneur Media Inc., headquartered in Irvine, California....
's Top New Franchises list and the #1 lowest cost franchise in the United States in 2009.
History
Fesum Berhane Ogbazion, who came to the United States with his family in 1982 from EthiopiaEthiopia
Ethiopia , officially known as the Federal Democratic Republic of Ethiopia, is a country located in the Horn of Africa. It is the second-most populous nation in Africa, with over 82 million inhabitants, and the tenth-largest by area, occupying 1,100,000 km2...
, opened his first tax office in 1994, Instant Refund Tax Service, while pursuing a degree in accounting and finance at the University of Cincinnati
University of Cincinnati
The University of Cincinnati is a comprehensive public research university in Cincinnati, Ohio, and a part of the University System of Ohio....
. He strategically chose a former H&R Block
H&R Block
H&R Block is a tax preparation company in the United States, claiming more than 22 million customers worldwide, with offices in Canada, Australia and the United Kingdom. The Kansas City-based company also offers banking, personal finance and business consulting services.Founded in 1955 by brothers...
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
Cincinnati, Ohio
Cincinnati is a city in the U.S. state of Ohio. Cincinnati is the county seat of Hamilton County. Settled in 1788, the city is located to north of the Ohio River at the Ohio-Kentucky border, near Indiana. The population within city limits is 296,943 according to the 2010 census, making it Ohio's...
and Northern Kentucky
Northern Kentucky
Northern Kentucky is the name often given to the northernmost counties in Kentucky...
area.
In 1999, sensing a major competitor in the area, Jackson Hewitt
Jackson Hewitt
Jackson Hewitt Tax Service Inc. is the second largest tax preparation service in the United States; responsible for preparing over 2.2 million computerized federal, state, and local individual income tax returns each year. Based in Parsippany, New Jersey, the company currently operates more than...
offered to buy Instant Refund Tax Service from Ogbazion for a reported $3 million. 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.
Controversy
On April 20, 2007, the Internal Revenue ServiceInternal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
investigated allegations of fraud involving eight franchise-owned Instant Tax Service locations in Missouri
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
. Though no charges were made, and no decision reached, Instant Tax Service terminated its contract with the franchisee 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.
In June of 2010, the Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
returned all property and files to the Missouri
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
franchisee with no further action taken.