Tax Question

old digger · Mar 8, 2012

If a person has H-R Block do their taxes, and a year later the IRS sends them a letter stating that their form was done incorrectly, and this person owes more taxes. Is this person responsible for this mistake, or should the tax agency pay for the mistake?

DigginThePast · Mar 8, 2012

It really depends on the Terms (Guarantee) set by the accountant/agency, the same Terms the consumer agreed to by having them do their taxes. Read the fine print.

My personal opinion is that the agency should be on the hook for any interest and penalties incurred due to their errors and the taxpayer should be responsible for the original tax burden. If the information furnished by the taxpayer contained errors or omissions then the taxpayer should be liable for all of it.

Mackaydon · Mar 9, 2012

old digger,

If you feel this is solved,

Go back to your original post,

Click on Modify,

Click on Message icon down arrow,

Click on Solved,

The Green Check will appear

old digger · Mar 9, 2012

Yes, but if the tax agency errored on the adding or subtracting in the paper work. This amount sum due other than interest and penaltys, would this be the responsiblity of the tax agency?

bonepicker · Mar 9, 2012

Cant answer your question, but i agree with DTP.
Personally i dont use those HR Block type accountants.
I use a 30+ year local accountant, he is more experienced and less expensive.
Those kiosk type accountants, sometimes dont know their a** from a hole in the wall.
... I think they should be liable for interest and penalties, if you presented all of your information correctly when they did your taxes. Sounds like you are in for a small battle with the IRS and HR Block.
Only things certain in life are death and taxes.

diggummup · Mar 9, 2012

I would never use them but, according to H&R Block's standard guarantee, a person is covered if penalty and interest charges are assessed due to H&R Block's error, H&R Block will pay those penalties and interest on federal, state and local returns.

That being said unless you (or whomever) purchased the "Peace of Mind Extended Service Plan" then you (or whomever) will have to pay the actual extra monies due.

In short without the additional service plan they offer, you pay for the original underpaid amount and they pay for the penalties and interest incurred because of it.

Here- http://www.hrblock.com/offices/tax-services-peace-of-mind-service-plan.html

old digger · Mar 9, 2012

diggummup said:
I would never use them but, according to H&R Block's standard guarantee, a person is covered if penalty and interest charges are assessed due to H&R Block's error, H&R Block will pay those penalties and interest on federal, state and local returns.

That being said unless you (or whomever) purchased the "Peace of Mind Extended Service Plan" then you (or whomever) will have to pay the actual extra monies due.

In short without the additional service plan they offer, you pay for the original underpaid amount and they pay for the penalties and interest incurred because of it.

Here- http://www.hrblock.com/offices/tax-services-peace-of-mind-service-plan.html

Thank You!

FLauthor · Mar 10, 2012

I went to H&R Block one time and they screwed up my taxes. :angry5:

Never again! For years I had a retired City Clerk do my taxes until she stopped. Now I go to a Local Book Keeper that handles several business accounts and for $75, she does my taxes and I always get back at least a $1000 in return. :hello2:

That's what's paying for my Excalibur repair. Plus I belong to LegalShield formerly Pre-paid Legal Services and I paid $300 a year for their coverage which is taken off my taxes but should I ever be audited then I have a tax attorney on retainer. :read2: