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Mark Humphrey / AP file
H&R Block customers can file online or at an office, like this one.
UPDATES story to clarify that H&R Block was not the sole software company affected by the problem.
A filing error has resulted in the delay of up to 600,000 tax refunds -- among them students who need the money to pay for books and the tax receipt to apply for financial aid, the IRS said Tuesday.
One of them is Franccesca Parodi, a 26-year-old interior design student from Seattle, who filed her taxes early this year at her neighborhood H&R Block office. She paid about $150 for 30-40 minutes with a tax consultant.
When the $2,500 refund Parodi was expecting didn’t show up, and the IRS Where’s My Refund? feature online said her tax return was still being processed, she went to the H&R Block website to see if others were having the same problem. That’s when she learned that Form 8863, relating to student tax credits, had been filed incorrectly.
On H&R Block's blog and Facebook page, she saw thousands of angry customers sounding off. She wrote that she, too, was frustrated.
H&R Block explained that the form had changed, and that in previous years, five lines on the form could be left blank for a “no” answer. Starting this year, preparers must enter an “N” in those fields or risk a delay. The tax-filing company said it learned about the tax form change after it had submitted hundreds of thousands of tax returns. The IRS said it was aware of the problem and it is continuing to review the situation and work with "affected software companies to assist in the processing of those tax returns."
In separate statements on Tuesday, H&R Block and the IRS said those who submitted tax returns between Feb. 14 and Feb. 22 would receive their tax refunds within 21 days -- not eight weeks as stated in an earlier letter from the IRS to those impacted.
“We want to assure the impacted clients that we are doing everything we can," H&R Block said in a statement. "The IRS has informed us and other impacted providers that they are currently processing returns.”
In a statement, the IRS said: “While the number of tax returns affected is around 10 percent of the total returns claiming the credit, the IRS continues working aggressively to address this situation and hopes to reduce those projected refund time frames further.”
About 6.6 million tax returns include Form 8863, although only about 10 percent are affected, the IRS confirmed to NBC News.
For Parodi, 26, the new timeline for her refund not good enough. Financial aid officers at her school told her that if she didn’t file her return from the IRS, she would likely not receive grants to pay for school. Her part-time waitressing job at Kells Irish Restaurant & Pub in downtown Seattle brings in less than $20,000 a year, and she worries she won't be able to afford school this summer.
Hoping for more answers, she returned to the H&R Block office Tuesday, where she was assured the problem had been fixed.
Parodi said she is overwhelmed, but that she doesn’t want to demand a refund from H&R Block because she is preparing for finals.
“They’re not assuming responsibility, they’re saying it’s the IRS," she said. "I’m like, ‘What do I do? Stay here and fight with these people all day or go home and do my homework?’” she said.
H&R Block, the nation's largest tax preparer, posted updates to its Facebook page and apologized on its blog to individual filers who have complained.
H&R Block isn’t the only tax filing company that has been in trouble recently. Last week, the Minnesota Department of Revenue warned taxpayers against using TurboTax to file their state income taxes, finding 10,000 returns had problems, according to the St. Paul Pioneer Press.
In a terse statement Friday, the Minnesota Department of Revenue said it would stop processing tax returns filed through Intuit -- which operates TurboTax -- if the problem is not fixed.
As for Parodi, she says she’ll either file by pen and paper next year, or she’ll ask a friend for help.
“Nobody told me anything,” she said. “They didn’t even call us. I had to go to their office and talk to them, ask what’s going on? I’m very unhappy.”
Leave a Comment:
Everything is electronic now...if you are in college you should be able to do your own taxes on line. Super easy to do. Going back to pen and paper?? Without even trying to do it yourself. Unless you have a complicated tax return you can do it yourself. My dad taught me, I taught my kids and they keep up to date each year on changes. At least try it yourself before you give up. At least you will still get your refund. It was only omitting Ns on a form, not a money mistake.
I agree. I always do my own taxes, and I've done them online for years now. My daughter is 22 (or will be Friday!) and I taught her how to go online to do them, too. We have both gotten our refunds already! I do feel bad for all the students, though. The tax laws changed SO MUCH this year is why the I.R.S. started late. Plus, H&R Block uses just anybody to do your taxes, not professionals. They screwed my taxes up back in 1981 and I'm wary of the people in the offices now.
H&R Block. You get what you pay for.
Good luck.
TurboTax (Intuit) has a similar problem. Just spent over 20 hours trying to call the 800 number the IRS sent me to submit "more information" - only to finally find out that TurboTax had left a box unchecked that said my son was a student. That caused the IRS to flag an error on my 8863 form.
My return was accepted on January 26th, and now they're saying 6-8 more weeks to get a refund. THANKS, Intuit. (/sarcasm)
Most of these problems were created when IRS could not finalize forms in time. Why not? Because Congress could not get their act together! So basically, your refund is late because of how your representatives and senators voted or failed to vote before the end of the year.
It doesn't excuse H&R Block. Each and every Yes/No box on a return should be checked--IRS didn't put them there by accident. Very few of these boxes have no implications. Never assume the answer has a default!
H & R Block says it's not their fault? Of course it's their fault, they didn't catch the change by the IRS. I am sure there are plenty of class action lawyers out there that will prove them wrong.
I respectfully disagree. I worked one season for H&R Block and chose not to work for them any more because I felt like customers did not get what they paid for. Most of the clients were low income people with lots of forms to fill out .... child tax credits, child credits, child care credits, etc. The forms were easy for a tax preparer to complete, especially since everything is computerized and we were trained to ask the right questions, but it was not unusual to complete a return in 45 minutes and charge well over $200 to the client.
The client should expect accuracy and a quick refund for the price they pay.
HR Block as a "Satisfaction Guarantee" policy if you are not satisfied with their tax preparation work they will refund your tax preparation fees. Sounds like it is their error not properly completing the Form 8863. Office managers will try to talk you out the refund but it is their HR Block policy. It is written on their paperwork and in the advertising in their offices. SATISFACTION GUARANTED!! This is their fault I would demand the refund!!
It is H & R's fault, not the IRS. It is H & R's responsibility to verify that all Federal & State forms are finalized with the appropriate governments. They did not or they would not have had this problem.
Sad that they charge such an outrageous amount of money just to do a simple form. If you go the IRS website: --- irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free
There's a link to websites, like TurboTax, where you can file your taxes and efile OFTEN for FREE depending on your Income, Military, etc. It's there every year.
Well worth taking a look at! Must use the link to get free.
YOU ARE A FOOL. I figure my own long form deductions every year. Then I send the end results to A very good private CPA (so good a client will have to die for you to get on list). For all this I am charged $110-$130 a year unless I have to file quarterly. The days of audits are over for me. Go ahead and risk doing your own. I dumped H7R Blocke in 1982 after theey refused to take legal deductions I had coming. I was also audited twice while they figured my taxes.
Online is through a company, pen and paper is doing it YOURSELF. See the difference there? You cannot have someone else do it and say I did it, even though Corporations do that everyday. Its the difference between being a person or a Corp, which is why the MAJORITY of Americans (not including the nut job Scalia) believe Corporations are NOT PEOPLE.
Except that H&R Block advertises their expertise. And at roughly $200.00 an hour for something that is so "simple" they shouldn't have made such a glaring mistake. The state of big business in America today, sorry we didn't know but you still owe.
VietNa -
Did the war hurt your intellect and therefore you resort to name calling to prove your point?
Another scam. they claim to be pros. They fill out your stuuf. you sign,and you are wholly responsible for the submission,without knowing or confirming anything H&R did,or didn't do. They aren't looking out for you,only their bottom line. Time is money,yes. But,doing your own stuff,you can only get mad at yourself,not for some company who screwed you because you don't know that they don't know what they're doing and could care less about you. they have theri fee already processed through the bank. You wait in limbo. They have a great concept,at your expense. welcome to new American dream. frauding consumers,and making those consumers responsible for the fraud committed against them. you betcha ;)
That's H&R Block's fault, not the IRS. They provide the tax filing service with their guarantees, they should keep up with the changes. I was billed for back taxes from my state because Block's syntax was misleading on a certain deductions that I used. In the end it wasn't that big of a deal because I shouldn't have gotten the money in the first place. But, their program, online or installed on the PC, should catch those deductions if they were not allowable.
But this year, I noticed the wording is easier to understand. They make wording difficult for their online/program to understand so that you get talked into having your tax return reviewed for an extra $50. That's on top of the $60+ most pay to have their fed and state returns filed by them.
Also filed with Turbo tax on feb 4, 2013 Federal came back Feb 27th but MI state was rejected. Cause: software issue with Turbo tax form that was not patched until feb 26. Come on... like you don't doublecheck your software before you use it? Frustrating but it may eventually get here.
haven't used H&R for over a decade but do they make much money off their "Rapid Refund" program?
My son filed his taxes weeks ago using Turbo Tax. Sent his completed return into IRS for processing, only to be informed AFTER getting an expected date for his refund to be deposited into his bank, that there was a delay! He is being told that his return is expected now to be completed by March 29th! His return should not have been accepted by the IRS if their form 8863 wasn't correct or even approved for processing! We have both always filed online using the free software and this is the first year there has been a problem. I blame BOTH the IRS and Turbo Tax for this error.
LOL.
I still use the paper 1040 form and mail it in. It's less trouble for me that way and I know the IRS is going to check it anyway. No problems doing it this way since 1973. I did make an error a few times, but the IRS caught and corrected it. No problem, because the corrections gave me a better return (more money for me).
Filed my taxes using TurboTax, as I have for several years. When I filed, I was told my federal return would be delayed, as one of the forms from some side self-employment had not yet been finalized by the IRS. But TT told me my state return would process right away. Cut to two weeks later, and the status tool through TurboTax is still telling me to "wait 24-48 hours for confirmation your state forms have been received". I found a link to the filing history, and learned TT hasn't submitted my forms! Come to find out, in my state, they require the federal forms be submitted first. So the delay on the federal forms caused a delay on the state, totally contrary to what TT told me. When I contacted their support, they just said "not our fault, those are your state rules". They had no answer when I asked them why they told me my state return had been submitted when they knew it hadn't. If I can't trust them to get that right, can I trust them to get my taxes right?
I bet the author of this article does not know what the letters in SNAFU means or where it came from...
2little, LOL!
You are right. Good catch.
It stands for, "situation normal: all fornicated up," right?
Went to file my return last week using Turbo Tax. I wasn't allowed to file. Why? Because certain forms were not finalized by the IRS (form 8863 being one of them). Other basic forms weren't ready either - like Sch. A & B. It is written on EVERY page of my return DO NOT FILE - FORM NOT FINAL. I received an email today stating the forms were ready for download.
How could H&R Block have filed these returns when the forms hadn't even been finalized? They knew the forms weren't final. Seems to me that they weren't honest with their customers.
H&R Block just held our return on their servers till the IRS told them that they would accept returns with a 8863. I got the notification from IRS that they received the return, but nothing about the problem till I found out yesterday on H&R's facebook page by accident...They had NO INTENTION of telling their customers about this snafu, until unsatisfied customers started telling the media about it.
EXACTLY. TurboTax knew all about this, and refused to let you take the final step to submit until the forms were ready. I've never ever heard good things about H&R Block. What a shame. I hope this poor student gets what she needs in time to further her education!
I run a bookkeeping & tax business and my software tells you right up front about the forms still awaiting IRS approval. H&R Block uses poorly skilled people with minimal training, you get what you pay for.
All amazing stuff, NOT.
Oh, and by the way, I used H&R Block's Free File web application, not a personal visit.
I. GOT. WHAT. I. PAID. FOR. :P
It is H & R's fault, not the IRS. It is H & R's responsibility to verify that all Federal & State forms are finalized with the appropriate governments. They did not or they would not have had this problem.
Sad that they charge such an outrageous amount of money just to do a simple form. If you go the IRS website: --- irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free
There's a link to websites, like TurboTax, where you can do your taxes and efile OFTEN for FREE depending on your Income, Military, etc. It's there every year.
Well worth taking a look at!
A lady-3816255 I filed with turbo tax on Feb 20th with form 8863. Got my refund a couple of weeks ago.
Tammy1 - I couldn't even print my 1040 return or my schedules A & B the other day without the DO NOT FILE and FORM NOT FINAL all over the pages. The schedules would print, but had DO NOT FILE in red in the upper right corner. Not sure how you got thru.
Nonetheless, if the forms weren't final, H&R Block should have known. Should have told their customers so they weren't expecting immediate refunds. They should provide partial refunds to all those affected.
And to pay $150 for anyone to file your taxes when you don't have anything other than the basics is bogus. Turbo Tax not on sale is like $50. Until I had a home and itemized deductions, it was easy to do by hand. Still easy, but I've gotten lazy.
Wow. $150 to file her taxes. Very sad that people are so intimidated by all this they can't do their own. I refuse to even use Turbotax. Not about to pay to update it every year. I use FreeFillableForms and do my own return. Costs me nothing.
Sorry Queen Marie, not everyone was gifted enough to be as bright as you.
Anyone who uses these sharks are crazy! Tell me they don't have enough money to front the people who have already paid for their services! Just another greedy corporation making money from people who can't/don't take the time to learn. I have filed my own taxes all my life, and have always been self-employed. Even the IRS couldn't answer questions I had on depreciation and amortization of farm horses used in my organic operation! I had to figure it out myself after being passed from 3 agents and a supervisor! LOL!
In case you didn't know you can go to any IRS branch and they will help you do your taxes if you can't do them your self. Unless you have something to hide!
Brad...Your remark to Marie was totally uncalled for. A person does not have to be gifted to do their own taxes. All one has to do is read the instructions to each form and plug in the numbers and do the math. It is no different than reading the instructions that come with your new phone or leaf blower.
H&R Block has been one of the worst tax prep companies for years when it comes to errors. They hire people off the streets that have no tax background, and can hardly read or write. And they do not do background checks so you are giving these people your complete idenity when you go in.
Think and read and do your own taxes unless you have a very complicated return, in which case you probaqbly make enough to have an accountant.
Kay shut your mouth , A man was correcting a woman . Great Job brad well done .And marie, just cause you a woman , you don't have to be a dummy . with long hours spend studying , and putting in the research . you maybe able to become a good person to your husband !
Kay....from Alpharetta
YOU are totally wrong...H & R Block does NOT just hire people off the streets that have no tax background. I have worked for H & R Block for 8 years now and when I started back 8 years ago I took their tax class. Every year we have classes and have to have so many hours of classes we have to take and pass exams at a certain percentage to go on for the next year. I know other companies might hire people right off the street, but H & R is NOT one of those companies!!!!
I have used TurboTax for the past four - five years and have had no trouble whatsoever; now with H&R Block's do-it-yourself program I had so much trouble getting where I needed to go, etc. that it ended up costing me a penalty with IRS, but H&R Block wouldn't help me out. I have never, and will never use them again and that includes going to an H&R Block office and paying $150 to have them do mine. Oh yeah, I've got a friend that works for H&R Block and I know their people have to keep current but apparently this agent or these agents didn't keep up.
Astounding-NOT.
When you have thousands of different rules and regulations, a regular Joe cannot possibly keep up. The Congress has to simplify the tax code so that people wouldn't have to pay hundreds of dollars each year for tax preparation. Otherwise it should be fully deductible (and not with the 2% threshold) as an additional tax.
Why's it always gotta be a Joe man? A little antiJoeite in you Little?
Just an expression. No offense to your male ego, I'm sure. Or is that sarc?
Sorry Queen Marie, not everyone was gifted enough to be as bright as you.
Its not that hard to do the taxes yourself a simple 1040 and sch A is what most average taxpayers use..don't need a college degree to do it!
Can do online for free and file for free.
So corrct as the vast majority of middle class Americans probably file the short 1040 form as we No longer have anything left to deduct to beat the standard deduction and our source of income is in the form of a weekly paycheck. I've always filed my own taxes even back in the days when working class folks could deduct things. For us folks coming from working middle class America the tax code is pretty straight forward. Uncle Sam takes it out every week and you ar lucky to get any of it back because they have eliminated most of the things we can deduct to beat the standard deduction.
Tax laws and regulations change in the feds and between states. Congress keeps changing parts of the tax code. Is your tax software the most current release? Good luck if you can account for everything accurately on your own without any help from anyone else, and fortunate for you if your filing is simple -- especially you don't have any investment or retirement portfolios and you're don't own or manage any large-ticket assets -- like homes, land, and/or any businesses, foreign ventures and their taxable resources.
TurboTax online software is always up to date (if not they be in hot water like H&R Block). Plus its free to file and send in a federal return, my state has its own tax return program online and that's for free too...that's the only thing TurboTax will charge you for a state return.
Been doing my own tax returns since I was 18..as of now my household income is $172k per year, I own three houses (two I rent out). I don't see what the problem is for most people with incomes below $200k.
Mike,
I'm with you on this one. I started doing my taxes when I was 18 as well. Fast forward and now my return includes interest, dividends, W2s, my wife's 2 sole proprietorships (granted, with minimal expenses), student loan interest write-offs, child tax credits, etc. This isn't rocket science. I use a simple online service to complete my taxes. Just read the instructions, people! I don't think I spent more than a few hours on my taxes this year.
I might pay somebody to do them next year, as I'll have a rental to include. But at that point, it will probably be just more for convenience!
I pay a lady CPA to do my taxes, $165, mainly because I have a rental or else I'd do them myself. H&R Block used to do my taxes, but when one year I asked if I could do income averaging they told me "No.". The next year they asked me why I hadn't income averaged the previous year. Then one year they lost my return and I quit going to them. I now use a CPA who charges roughly the same amount as H&R Block. May she live a long and productive life.
I picked up an H&R client this year. She had 4 total forms and was being charged $300. And to top it off, H&R has been doing her state return wrong for the last several years. Thank you H&R!
A college students that can't even do their own taxes....... get a clue
And it's not Turbo Tax that has been delaying the forms..... talk to CONGRESS.... they've been holding us all hostage for the last year......
Then the IRS expects everyone to jump thru the hoops & get everything done.... what a SCAM...........
FIRE CONGRESS
Yes. Congress dragged their feet and still didn't make decisions before Dec 31. This put the IRS in a situation of having to change software code and some forms at the last minute. Some of these would not be ready until mid February. Shame on congress. Any working person would have been fired for such poor job performance. Congress has sunken to new lows.
The return was efiled and I'm sure the cusomer walked out the door with a paper copy of the return. Who cares if the refund was delayed. That has no impact on being able to supply your tax return information in order to get college funding, grants, etc...
Umm yeah it does have an effect on your loans and grants. I was a lucky person chosen for verification. You need a transcript to do that. If you haven't finished processing, you can't get a transcript from the IRS. There is also independent summer aid that some schools (like mine) require your tax transcripts.
She never stated in the above article she needed a transcript from the IRS. Usually, a tax return signed by a 3rd party with copies of W-2's, etc would suffice. I doubt that the number of tax transcripts a school would ask for is statistically high anyway. Probably up there with getting picked for a random unemployment audit. And how many people drawing unemployment are actually actively looking for work do you think? Not many - at least from the unemployed folks I've talked to. It's a mini vacation and they start looking when the unemployment gravy train is close to an end.
well you get what you pay for.....probably not cpa's anyhow. why do they set up shop in your local walmart anyways...oh yeah, i forgot
I've used H&R Block online for the last 3 years and it's been great. Of course my returns are pretty simple and I'm not a student. I feel sorry for the kids that were hurt in this.
With the thousands of tax changes the IRS posted for tax year 2012, this one was not listed. Go to IRS.GOV and read for yourself. If H&R Block did not have that information, then many private filing individuals did not either. It looks like the IRS made the updates during tax season as is often their custom.
Note that individuals who filed themselves don't have a Face-book page to go to for complaints. I have heard more complaining about this delay than the delay that kept everyone waiting an entire month to file.
Maybe the filing deadline should be May 15 this year.
I share the same story with the same exact amount of a refund as the student in the article was getting. I did not need to receive a refund in order to process my financial aid, my school just needed to know a few basics that were clear at the time I filed, I dont know if schools differ in procedure, so I cannot speak to that. Anyways, I paid through the nose at H&R Block to do my taxes, over 200.00 dollars, for 10 mins worth of sitting down and talking to an agent about my major while she punched the keys. Rather humiliating. (Next year, I will do them myself). I found out when I got home that the stupidhead didnt enter my bank account information correctly for my direct deposit, so there was a good chance when the money was cleared by the IRS, it would bounce back because the banking info was wrong. So a trip to my bank (credit union) resulted in assuring me not to worry about it, as the woman who processes these things told me its more about the name on the return, and as long as its similar in bank acct. I will put it in. Thank You Credit Unions <3 So, back to H&R Block once a week since Feb 15th when I filed with the dreaded 8863, to see if the IRS had released the funds. Within 21 days, so it could be anytime. I was fobbed off by a lady at the front desk whose name I learned to be Marjorie, she will always stick in my head because instead of her 2 front teeth growing in next to each other, they grew in one in front of each other, which creeped me the hell out. This is North Carolina (I am not a native) and I think she was happy to have any teeth at all. But I digress. Back to Marjorie, each week she came up with a new story as to why my return hadnt materialized yet. Til finally because mid terms were coming up, I let it go for awhile to focus on school. Low and behold 24 days go by since filing and no return. IRS website says its still processing. A phone call to Marjorie, a very non-committal Marjorie said the IRS goofed things up and in a few days my return will be in the bank, and then hung up on me. School is very close by to the H&R Block office where Marjorie is, so I made one more trip to the office and spoke with Marjorie's boss, then Marjorie about the pitfalls of being rude. She was mortified that her rudeness to a person on the phone manifested itself into a real person, and was called to the carpet for her folly, in front of everyone. So, in closing, Both the IRS and H&R Block are to blame for not communicating the errors to the public, and I am here sweating things out, as I wait for this money to take a much needed vacation to Florida to visit friends. Final Thought: Mistakes happen, and thats ok. Just own up to it, be forthcoming and work with the people affected. How hard is that? T-Raleigh, NC
Yea, I'm sure college life has changed a lot since I was in college and grad school. (Near Raleigh for grad school). Vacations in Florida? Guess I miised those.
T, you sound like you are basically a mean-spirited person. Is that how you want to be seen? People can't help how their teeth grow in.
Considering all those TV ads for HRBlock, this is laughable. This is not the first major problem with HR. A few years ago they were charged with improper filing of their own corporate taxes, and heavily penalized. If they can't do their own taxes right, why should you trust them to do yours?
However, it is their responsibility to know the filing requirements. They cannot blame this on the IRS. The IRS communicates changes to tax preparers. HR is not the innocent party. They are negligent.
On the other hand, congress did add some confusion to the mix this year for their failure to do their job before the end of the year. This left the IRS hanging without full knowledge of changes that would take place. They had to update their software and some forms at the last minute. Therefore, some filers could not file until late February if they were using certain forms. This information was publicized.
But the bottom line--HR Block is responsible. If they didn't know how to train their people, they should join Mo Money and shut the doors. None of these tax preparation firms use fully educated preparers. Most of the people who actually do the tax preparations are minimally paid and take a quick crash course in Nov-Dec to get ready for the tax season. And yes, the fees charged are outrageous. Everyone can do their federal return online for free. State returns can be done for $8 to $20 with the federal return. Why pay rediculous fees whrn you don't have to?
You can file your taxes for free, each state has different requirements as far as earning levels, and yes even state taxes can be filed free at MyFreeTaxes.com
"File your state & federal taxes for free! Powered by the Walmart Foundation — in cooperation with Goodwill"
I did mine, my ex wife's and 3 out of 4 of my kids taxes 2 weeks ago and we all got our refunds already.
This is through H&R Block and if you did your taxes with them last year you just need to start a new account or you will have to pay. There are requirements as to how much you have made to use the free service I believe it's around $57k you will have to check but I rolled through it and with no problems at all. Pass this info around and good luck!
Walmart? I would never trust them with my financial information.
I worked for H&R Block in the '70's, and I can tell you they don't care any more about their employees than they do their customers. They once lost a guy's W-2 forms, and he came in the office wanting to know when they were going to find them. The boss at another office kept telling me to tell him they'd find them in a day or 2. He came back twice after listening to those lies, and then he said he was coming in the next day with his pistol, and that we better have them. I told my boss that if he didn't find those W-2 forms, I was not going into the office. Naturally, he told me not to worry about it. I then told him that he could come into the office the next day and tell that to the guy with the pistol. Shortly after that he found them.
I tried to file my return with H&R Block in early February but it kept saying I had a form 8863 which would delay processing my return. The fact is, I had used NO form #8863 and the telephone support technician couldn't find it either but the program kept insisting it would delay my return because of it. I ended up cancelling the entire return on H&R Block and went with Turbo Tax which went very smoothly and with no issues. Refund came in three weeks from both state and Fed.
Actually Block Fees are quite high. I am a CPA and often charge less then H&R Audit and I have 30 years experience, a professional license and can practice in front of the IRS. Sorry I don't offer to give you a prize for extra $10,000 refund the Block. People should understand that the prize money they offer gets built into their fees.
I fought back and forth with both the IRS and HR Block the IRS stated to me that they were not going to say who was to blame but this was only after a week of getting the run around from them. The letter the IRS was supposed to have sent me was left in limbo. My return was pulled from the processing for 14 days before and they stated that there outsourced company that processes the returns was supposed to have sent out the letter and they couldn't find out why and they couldn't move my return along until I got the letter that they had no access to. When I asked why they couldn't solve the problem it was because the returns are processed by an outsourced agency. So what good was that? So the IRS couldn't help because it was not them processing it. So I blame both the IRS and HR Block but more the IRS because alot of this could have been resolved when taking the calls over the two yes/no answers that wasn't transmitted on the 8863 form. They could have moved the process along faster but now we have to wait another 21 days after 30 days waiting already. You would think that the government could have solved this problem in house. According to the IRS it took 1000's of calling complaints over the past week to look into the problem only this weekend. If there was a problem they should have realized it one day not over a week. Instead they just keep giving the people the run around.
My CPA charges me $75.00 to prepare my taxes. I trust a CPA more than anyone from H R Block. I'm not saying there is or isn't qualified people there, but when a CPA stamps your return, it's almost always done error free. And so far, I am happy with her doing my taxes.
But everyone to their own.
These are college kids and pay H&R Block $150 to file a simple tax form? What a waste! It's plain laziness that prevents them from filing their own taxes. There is no reason the students can't do it themelves if they take it line by line and reference the instruction booklet. Should they have to file more complex forms (but most don't), then they may need help.
Holy, Well geez. Glad I use TurboTax.
Turbo Tax screwed up 10,000 Minnesota returns. I've already received my MN return because I used H&R block. I'd have been screwed either way.
I have used H & R tax software for years and I trust them. If a problem occurs, they own up to it and they provide a fix. They are a trustworthy company.
I have used Taxcut/Block for 11 years now - it works OK for me. It even worked when my taxes were more complicated, with rental income, partnerships (what a pain in the arse), royalties, foreign dividends, and junk like that.
There is an occasional hiccup, with items that do not always transfer smoothly into the interview process. This year, I left $12 in refund on the table because there was no easy way to enter a deduction that was on a K-1. I could enter it with an override, but that prevented e-filing. It was worth the $12 to just skip the deduction and e-file right away. Sometimes I suspect collusion between the software companies and IRS - some things are easier and quicker to skip the deduction or credit.
My view is you are all a bunch of blithering idiots if you have to file a return to get back more than $100.00 or pay more than $100.00. Withholding is not a savings account, it is your money.
For pete's sake people, adjust your withholding so you use your money each month as you earn it, and let Uncle Sam go whistle Dixie if there is not enough coming in to pay Congress, the League of Gopher Breeders, or whomever.
With current interest rates, the IRS "savings account" is not far different from bank savings accounts or CDs. They all pay zero interest.
My withholding is fine. I got a tax credit this year I'd never had before because I went back to school and paid my tuition in full up front. The credit didn't even exist at the time I paid my tuition. It was a complete surprise to me.