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H&R Block / very costly miscalculation on 2006 tax return

1 2464 West ClaySt Charles, United States Review updated:
Contact information:
Phone: 636-947-1670

We used the services of H&R Block, Wentzville (falling under the St Charles, MO office) for our 2006 tax return. We purchased their Peace of Mind guarantee at the time. We were audited by the IRS for the tax return and it was revealed that H&R Block made substantial errors in the return totaling over $13, 840 which we were informed we now owed. When we filed in 2006 H&R we originally refunded by federal and state (California) authorizes over $6, 300. So we now had to return not only the $6, 300+ we had been refunded but also an additional $7, 000+. We needed to pay the IRS $9, 712 - and we are told to expect, due to the errors, that the states of CA and MO will claim from us another additional $1, 900 when they are finished assessing the new filing. H&R Block admitted the very significant mistake (and in actual fact, in the process of determining the new, correct amount owed, discovered another basic but substantial error in their calculations and methods - while this resulted in less owed, it still underlines the fact that they made two very large errors). H&R Block honored the Peace of Mind guarantee by paying us (June 12, 2008) a check for $7, 330.47. This included their standard guarantee for penalty and interest ($2, 300, 47) plus the maximum allowed under the guarantee of $5, 000. In short, we still needed to pay $9, 712. H&R Block legal department has written to us (Regina Akers, Senior Paralegal) to inform us that they will not consider additional payments above and beyond what their Peace of Mind guarantee promises. Leter dated July 18, 2008. We believe this is unacceptable. Never in our wildest imagination, and I gather from discussions I have had with H&R Block representatives, that such substantials errors should ever be made by a professional tax preparer.

Your Desired Resolution:

We want to appeal H&R Block to make an exception to their Peace of Mind guarantee rule and pay for the difference of $9, 712 that we are now out of pocket. All discussions with regional management has met with only referral to the legal department who have answered as stated above. In addition we want them to pay for the money will need to pay back to the states of CA and MO in due course (approx. $1, 900)

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Comments

  • An
      9th of Jan, 2014
    0 Votes

    I agree. In your complaint, at the end, you mentioned that you didn't expect this from "tax professionals". I needed to say that H&R Block are not tax professionals. They are merely just housewives, or those alike, that use that job as part time employment and just do the taxes off software, much like Turbo Tax or something thereof. Most of them only know certain information because they've done it for years, but still, they do not have a degree in accounting or anything like that, sad to say. (I'm using Turbo Tax from this day forward)

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