H & R Block Tax Service Failed to keep their promise of NO mistakes or WE pay Ad ripoff Lafayette Indiana

While I understand that dealing with the IRS and taxes in general is a bit scary at times, your problem could have easily been solved long ago. H & R is just of many tax companies. And in the six or seven years since that letter from the IRS, I am failing to understand why you would not bring it up in one of the tax return sessions you have had since then. Any of H&R Block competitors would have been more than happy to help you with this when you prepared your next year's return. The amount you owed should have been covered when the IRS took your next year's refund, which by the way would have kept before any SSI benefits. So I think we are not seeing the full picture here.

As far as what H & R Block is liable for, they clearly state the difference between their "standard guarantee" and their "Peace of Mind" service agreement. Should a mistake arise, not relating to fraud (i.e. someone withholding income on purpose) and it is determined to be the tax professional's fault (they retain copies of all income documents provided by you) then they claim to pay for the amended return, any fees associated with such return (late filing, etc) and they will pay any penalities or fines associated with it. They will assign someone to meet with you and go over any audit hearings that you are required to attend as a result of the taxes filed in their office.

Every year I go in there, they offer me a "Peace of Mind" agreement for only $29 that I happily take. In addition to the standard guarentee, they pay your share of the taxes up to $5000 and will send an Enrolled Agent (recognized by the IRS) to the audit in your place so that you don't even have to miss work.

Seems to me, you are upset that H&R Block did not pay your taxes for you. That is not for them to do. You would have had to pay those taxes if the tax professional had not made the mistake to begin with. ( I am assuming here that you did not purchase "Peace of Mind") So why are you expecting them to pay for your taxes now?

I know how to do my own taxes, and I still choose to use H&R Block simply because I don't want to end up in a situation like yours. The office I go to is open year round and provides me with free tax advice, even during their off season. In my experience with them, they have went out of their way to help me.

I truly am sorry for all that you have had to endure. However, I feel this error was one that could have easily been fixed a long time ago and I don't think you are going to have any luck getting the time of compensation that you are seeking.

If the income you received was reported on Form 1099-MISC, and Box 7 Non-Employee Compensation is where the amount is reported, then the IRS will treat that as Self-Employed Income.

irs.gov/faqs/faq4-3.html

You wrote a story in exchange for the "winning", and you are not an employee. You can actually be self-employed as a writer without realizing it.

You shouldn't have fought the IRS yourself. What you should've done was hire a REAL CPA. (Often H&R Block employees are not real CPAs).

You should have the CPA Amend the tax return to include Business Deductions against that income. Some deductions might include auto expense, paper, ink, computer, internet connection, office expense, meals, travel, etc. You might just end up with a Net Loss instead of an income.....

Its been 7 years so you can no longer file an Amended tax return. Too late for that now.

If you've given H&R Block the original Form 1099-MISC they should've known what to do with it. If you did NOT give them the Form 1099-MISC, and they reported the amount based on your description only, then H&R might not be at fault here. Especially its been 7 years since the Tax Return was filed, you have more than enough time to get this resolved without accumulating all the interest and penalties over the years (which H&R Block is not responsible for).

You can try to sue H&R Block, they might settle and insurance will cover for them always.

I believe there are more to the story. Sorry, next time go to a real CPA.

First I am sincerely sorry for everything you are facing. Second you are not in a position to personally deal with this IRS problem. I do not mean that as an insult, I would not have even been able to write the report if I was going through what you are so you have my sympathy and understanding.

Here is what I think you should do. Find a local mom and pop tax office and explain your situation. Some will help you out for free given your situation (I know I would if I was closer to you.) You may be turned down by a few but you will eventually find one that will help you out.

Your return will require an amendment and it will be very difficult to do on your own without the proper software under the best conditions. However, it will be a simple matter for a trained tax professional.

The statue of claiming a refund yes has expired, but you can still amend the return so that you will get at least a reduction in the type of tax your being assessed. You are not self employed, you should amend the return ASAP.

Also, I wanted to comment that the interest rate is right now at 7 percent and the failure to pay is .5 which is a half percent, it is monthly not daily, though it is compounded daily, you will not get the refund due to the statue of limitations but you can always write a letter to the state of limitations dept and explain your situation and they will consider it.

If you need assistance call the IRS and speak to the Income/Revenue Dpt.

First I would like to say..THANK YOU LISA for your helpful comment. Now onto Richard in New York who is assuming that I have sat on my butt all these years and done nothing except whine and hope that someone will do my "job" for me. Richard...however unhelpful your comment was I do want to inform you that I did NOT sit around for seven years doing nothing. I have written the IRS, numerious times [I have all the copies as proof] and they kept sending me forms/statements to fill out, which I did, but nothing short of excessive useless filing changed. Each tax year we still were being fined and docked for this H & R Block mistake. I continued to complain via phone and letters to the IRS, and still nothing changed but more of the same forms to fill out, with no tax status change. In between all this mess, I developed a terminal illness, that has side-lined any life I ever had, and I ended up hospitalized for months, and sickly for years {four actually] so you see I have ben "moving", just not in the same direction as the IRS would like me to, and now they have taken my disability pay to "pay these arrears", talk about trying to take "blood from a turnip" where the IRS is concerned. They will gladly ignore you your rightful options to defend yourself, but are quick to take your much needed funds, without justification or reasoning, let alone warning/notice. I also contacted H & R Block as Lisa suggested, and they now claim they don't know anything about my situation....so pray tell Richard, how do I get "moving" now?
Complainant Rebuttal

It seems that you sat around for 7 years and expected this H/R Block office to fix something they screwed up. Why didn't you go to someone else to help fix this? You chould have gone to the IRS itself and they would have given you instructions on what to do.

Unfortunately, you are responsible for your tax return, regardless of who did it for you. As Lisa told you, you still have options, but Im afraid that your time may be running out...

Get moving and find someone else to help you with this. This H/R Block office is not going to do it.

First you should amend your tax return for that year, Publication 17 chapter 12 for 2005 states PRIZES,AWARDS... from contests go on line 21 of a form 1040, YOUR not self employed this was a prize. When you amend the tax return (1040x) enclose a PHOTOCOPY of the paperwork the contest place gave you, the IRS will adjust your account and you will not be charged the pen and INT. If you need assistance call the IRS and ask for the income department, they will quote the same tax law I just did that a prize is taxable but it is not self employment.

Advised HR block it was their error not your and they need to fix it ASAP.