Shouldn't H&R Block be held responsible for this?

Question

Hello. I originally did my 2004 tax return with H&R Block in 2004. I didn't receive notification that for some reason, the return was never finished by H&R Block, and that because of it, I owed the state (CT) money until May of this year. I took it to H&R Block, they gave me an amended copy and I sent it to the state. I got another letter saying the same thing. I took it back to H&R Block, then they called the state, and told me that I would have to send in my W-2's from 2004, and that would resolve it. I went through my company's payroll, and got the W-2's, then sent them in. I still got another letter. I went back to H&R, who scheduled me on a RI holiday, when the offices are closed so they couldn't call the state, and they said to call back. I called and spoke to this guy who said he would have someone call me, and that he would then personally call me, but no one called. I went back to H&R, and they tried to call the state, but no one answered so they said they would call me.......

She called, but it was the next day and I wasn't home, and when I called back, there was no answer. I just got ahold of them today, and she said the woman would call me back in 5 minutes, but that was over an hour ago. H&R Block has been doing this since May, and I still don't have any answers, but I guess my original question would be, I know I didn't have the peace of mind when I did my taxes, but I feel that since I paid them, they should have to pay for this since I'm not the one who screwed it up. Also, they told me to do these things and that would resolve it, but it hasn't. So is there anything I can do here?

BTW, thank you for taking the time to answer, I was rushing around to get the whole story up here. In my opinion, if I knew my taxes were going to be messed up, I would have done them myself and kept that percentage of my return that I had to pay to H&R Block. The total is $500, and it's only so much because it's been a long time since I got the original letter that the total snowballed with the late fees and everything. Anyway, thanks again!

Answer 1

You will owe the tax to CT, since you would have owed it originally, you will owe the interest, since you had the use of the money from not having paid the tax that was owed. You might be able to get H&R Block to pick up the penalties, since they didn't finish the return on time, and didn't let you know that. You could also see if they will pick up the interest as well. They used to have a slogan on tv when they advertised, if they may a mistake you pay only the tax, they pick up any interest and penalties.

Answer 2

I assume you filed your state taxes with H&R Block, paid your tax preparation fees, and H&R Block failed to file your return, or the return was rejected and not re-sent.

Did you have a balance due on that return but didn't pay it? The balance due, and any interest or penalties for failure to pay, are your responsibility entirely. You owed the money whether the return was filed or not.

Any failure to file penalties would be H&R Block's responsibility, as long as you can show you had your return prepared by H&R Block.

If H&R Block had submitted the return and it was incorrect, they always guarantee that they will pay interest and penalties on any additional tax assessed.

If your local franchise doesn't pay the 1) Failure to file penalties and 2) Any interest or penalties due on taxes assessed after the return was filed, then call the corporate headquarters and complain.

Answer 3

As an EA I feel Block is due to pay any interest or penalty as the return should have been filed at completion (unless you were instructed to mail it)

The tax is YOUR responsibility regardless

The problem with using a national chain is that they are only required to have one office open per territory once a week

Beign in CT I find the state to be very helpful if you know how to talk to them


if you can send me an e mail maybe i can help

Answer 4

This is a problem for you and H&R. You are ultimately responsible for the return and taxes owed, But It was their negligence that caused this. They should be responsible for notifying the state and I would ask that they reimburse you for the penalty. File in small claims court for any penalty you have to pay, if they don't . They are dancing around because they screwed up big time. This isn't a case where there was a error on the return, or you gave them wrong information, They failed to file the return and that makes them responsible for any penalty you have to pay.

Answer 5

IF the mistake was made by H&R Block, then they will pay any interest and/or penalty you might be charged due to their mistake.

They will not pay any additional tax liability that you owe unless you purchased that high-priced "Peace of Mind Guarantee" that they sell. You will still be liable to pay your taxes, no matter who "screwed up", as you say.

It sounds like they are trying to correct the situation, but they don't seem to be very diligent about getting it done.

Answer 6

unfortunately the first poster is correct.I assume the return was supposedly filed electronically?.the H/R would have a record of it not being accepted or not sent.I would complain with the management of that franchise and get them to pay the interest and late penalty's for there lack of due diligence.
I would also get them to do every thing in writing(most of communications with the government should always be written not oral). next time you need help find a good tax preparer(we cost about the same as the bad one's H/R ,jackson hewit) with a good track record.

Answer 7

If your return was never completed, you never paid for your tax preparation.

I worked for one of the major chains for 6 years, and it is amazing how many people "suddenly" realize they never had their taxes filed.

These weren't people who were getting refunds, they were individuals who had tax liability, and they didn't want to pay for tax prep up front, or they had some Fed debt and were required to pay up front.
I have spent weeks and years attempting to get hold of tax payers attempting to get them to at least come and pick up their w-2's and other tax info...

If you owed money on your original return, you were required to pay for preparation before it was sent off, then; you would have had to include your check separately to the IRS and State, since you didn't ever do that, I find it unlikely that H & R Block is at fault, and it is probably that you never completed your part in paying for your tax service.

Bless

Answer 8

I agree with the first poster. He is absolutely right. Its your responsibility not theirs. Just because you hired H&R Block to do it for you, or any other company.... Still up to figure out if they did it right.

Most H&R blocks are franchises. Just like McDonalds the local company has to handle the problems and issues. Try another H&R (or any other tax accountant) to first fix the problem.

Just because they have the H&R name doesnt mean they are skilled enough to deal with this, or have the money to pay for problems they might have made.

Answer 9

I am amazed t how many people came down so strongly on you here! Yes, the IRS and state tax people hold you responsible to THEM, but since you paid H&R for a service, they are responsible to YOU. Keep on them!

Answer 10

Most local TV stations and news papers have a consumer help service. Call them and explain your situation. You will probably get help in no time. I'd also march down to H&R Block, ask to speak with the manager, politely but assertively demand that they rectify the situation immediatley. Then I would write a letter to the CEO of H&R Block with a cc to the state taxing agency outlining your experience.