Seeking Alpha

The IRS says H&R Block (HRB) bungled more than 600K tax returns, impacting ~10% of the...

The IRS says H&R Block (HRB) bungled more than 600K tax returns, impacting ~10% of the 6.6M returns containing Form 8863 used in claiming education credits; refunds for those taxpayers will be delayed by as much as six weeks.
Comments (11)
  • "COME LET AN EXPERT LOOK AT YOUR TAX RETURNS" that was there advertisement on TV on Sunday. Funny stuff.
    12 Mar 2013, 05:30 PM Reply Like
  • ouch......
    12 Mar 2013, 05:32 PM Reply Like
  • Experts, indeed. Most people don't know that getting a PTIN is a matter of just paying an annual fee, no aptitude or knowledge needed! I would hope most of SA does their own taxes or engages a real professional to do them. Everything comes with instructions, you'll be glad you took the time to learn! Places like these will rob you for fees and a portion of your refund which they will try to increase through any manner of questionable means. For students and low income families/individuals, most communities have TAP (tax assistance programs) run by local CPAs that will do them for FREE.

     

    Worse yet, places like HR Block and other less reputable preparers can abuse very low income earners by paying themselves out of the safety net credits (earned income, making work pay, etc) that are designed to help these people. It's absolute graft.

     

    Sorry, rant over.
    12 Mar 2013, 05:46 PM Reply Like
  • Based on your statement about the "Making Work Pay" credit and equating it with the EITC, it is obvious that you know little about tax details.
    12 Mar 2013, 09:03 PM Reply Like
  • tax cpa > 10 years, sooooo im going to go with I might actually. The credits aren't the same, I dont think I equated them, just listed them as examples of refundable credits (I will give that there hasn't been a MWP credit since 2010).

     

    You're blowing this feed up -- any reason you're so ornery on this issue?
    13 Mar 2013, 12:57 AM Reply Like
  • one year I tried to use the H&R Block software. Disaster! The software could not handle the foreign tax credit form 1116, and it could not handle K-1s. I don't know if they've fixed these issues, but the software was useless and I returned it and got a refund. Too bad I wasted my time trying to use it!
    Intuit's Turbotax Premier product has worked well for me for many years.
    12 Mar 2013, 06:01 PM Reply Like
  • did they have different versions like turbo tax?
    I always use the business/home version
    I probably can save a little and just get the duluxe version now since I am no longer in any kind of business.
    12 Mar 2013, 08:33 PM Reply Like
  • I have been using Turbotax for so long that I cannot even remember the last time I did it manually. I use to do all the taxes for our small company including sub chapter S stuff and it is not that difficult.

     

    I always only enter one line for each of my account with the total amount sold and the total cost and just attach the thick report from the security trading firms.

     

    I never have any problem with the IRS. Last year they send me a letter asking for where is my sale of CVX and also some small amount of interest. What happen I am sure is they lonly look at the computer entry they did and not my attachment. So I resend them 30 pages of transactions and also told them I have no record of those small sums of interest. They must feel bad about boardering me and just send me a letter and agreed to forget the whole thing.
    12 Mar 2013, 08:29 PM Reply Like
  • I think you meant S Corporation. And how many K-1s did you issue to the partners? Did you get all the various credits your company deserves on Forms 3800 and 8903? How about depreciation or amortization? Tax returns for corporations, small, large, LLC or otherwise are not that easy to prepare correctly. And who stands behind the return, you?

     

    Off my soapbox.
    12 Mar 2013, 09:19 PM Reply Like
  • Regarding the "bungling" of data on Form 8863, the IRS changed how they receive and handle the information from the form and did not advertise the change until a few days after the change was made. The IRS has also delayed returns because of other forms, Energy Credits, Education Credits, Passive Loss Limitation, Depreciation, and on and on. The IRS also delayed the time it would accept efiled returns to January 30th. Is Block to blame for these "bungles" also?
    12 Mar 2013, 09:29 PM Reply Like
  • $HRB making moves north after hours -- I wonder if it's all the additional interest & fee revenue on those lines of credit they extended to their clients to help tide them over while they wait on those refund checks.
    13 Mar 2013, 01:01 AM Reply Like
DJIA (DIA) S&P 500 (SPY)