Jackson Hewitt Tax Service Faces Allegations of Targeting Illegal Migrants with Tax Refund Flyers in NYC

New York City, April 3, 2025 – Jackson Hewitt Tax Service, one of the nation’s largest tax preparation companies, is under scrutiny following accusations that its representatives distributed flyers in New York City advising illegal migrants on how to secure substantial tax refunds from the Internal Revenue Service (IRS). The allegations, which surfaced in late March, claim that the company offered guidance on obtaining refunds of up to $14,000, raising questions about compliance with federal tax laws and immigration policies.

According to reports first brought to light by independent journalist Savanah Hernandez, Jackson Hewitt employees were stationed outside the Roosevelt Hotel—currently a migrant shelter in Midtown Manhattan—handing out flyers to individuals. The promotional materials, reportedly printed in Spanish, outlined potential refund amounts tied to the Child Tax Credit, with figures such as $7,650 for one child, $12,635 for two, and $14,255 for three. The flyers allegedly emphasized that refunds could be claimed “working or not,” prompting criticism from observers who argue the messaging targets undocumented immigrants ineligible for such benefits.

The controversy erupted as Tax Day approaches, amplifying public and political debate over immigration, taxpayer funds, and corporate responsibility. Hernandez’s video evidence, widely circulated online, captured an employee confirming the company’s assistance to migrants seeking tax refunds and suggesting similar efforts occur at “all the shelters” across the city. The Roosevelt Hotel, once a luxury destination, has become a focal point for migrant processing since 2022, housing thousands amid New York City’s ongoing response to an influx of over 230,000 arrivals.

Jackson Hewitt, which operates approximately 6,000 franchise locations nationwide, including 3,000 within Walmart stores, has responded cautiously. A company spokesperson told Newsweek, “The IRS requires anyone with a tax obligation to file a tax return, and tax returns filed with Jackson Hewitt comply with the U.S. tax code. We are reviewing the specific situation that occurred on March 28 with the independently owned and operated franchisee involved to ensure they met our high compliance standards.” The statement stopped short of addressing the flyers’ content or the allegations of targeting undocumented individuals.

Critics, including prominent figures like Elon Musk, head of the Department of Government Efficiency (DOGE), have seized on the incident to highlight perceived flaws in tax enforcement. Musk, commenting on social media, labeled the practice as part of broader “IRS refund fraud payments” that “attract and retain illegal immigrants,” costing billions annually. The claims have fueled partisan rhetoric, with some accusing the company of facilitating fraud, though no formal charges have been filed.

Tax experts note that individuals without Social Security numbers can file returns using an Individual Taxpayer Identification Number (ITIN), potentially qualifying for certain credits if they meet IRS criteria. However, eligibility for the Child Tax Credit typically requires children to have valid Social Security numbers, casting doubt on the legality of refunds promised to recent arrivals without such documentation. Michael Ryan, a finance expert, remarked to Newsweek, “What strikes me about Jackson Hewitt’s response is what they’re not saying. They’re hiding behind ‘compliance with tax code’ without addressing whether their franchisees are actively marketing potentially misleading refund amounts.”

The incident has drawn attention amid heightened national focus on immigration policy under President Donald Trump’s administration, which has prioritized curbing benefits for undocumented individuals. An executive order barring “illegal aliens” from taxpayer-funded benefits remains in effect, though enforcement gaps persist. New York City, which has spent over $7 billion addressing its migrant crisis, continues to grapple with the fallout, even as the Roosevelt Hotel is slated to close as a shelter in June.

Jackson Hewitt’s internal review of the franchisee’s actions is ongoing, with no timeline provided for conclusions. As the story unfolds, it underscores the complex intersection of tax law, immigration, and corporate accountability, leaving taxpayers and policymakers alike questioning the integrity of the system. 17GEN4.com