What happens if HNR Block messed up on your taxes?

[Venuila]

Hi All,

So, a friend of mine usually always does their taxes...well, this year they decided to go with hnr block, and apparently they messed up big time and they got a reassessment the other day and OWE $7000!!! They went to HNR, and they were extremely apologetic but said nothing can be done, too bad, so sad. My friend has to suck it up and pay it.

Does anyone know if there is anything they can do???? That just doesn't seem right to me. HNR realized their mistake and pointed it out to them where they made the HUGE error but said the only thing they can offer is an apology.

Is this true? Anyone ever have something similar happen?

[bargain_hunter_lola]

We had something similar happen with H&R block, although no where near that amount.

They messed up DH's taxes a few years ago (probably 3-4 ago). He got reassessed and owed almost $900. I forget all the details but H&R paid it initially and we worked out a payment plan with them (I think we did $300 a month until it was paid).

That was the best they would do for us. Really upset me because it was their screw up. They gave DH cash back of $1200 or so when he filed. Had they of did it correctly in the first place he would of just received $300.

But at least with DH it wasn't a huge amount and he was still "up" from the return.

I've heard of them messing up a lot of people's taxes. Pretty scary that they messed your friends taxes up by that much! That's insane!

Oh I should add that they took off the amount he paid for them to do his taxes off what he owed. I told them we shouldn't have to pay them to screw up the taxes. They also have us vouchers to do our next years taxes free.


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[Shwa Girl]

How much did H&R block charge to do the tax return? $50?
Doing it yourself with a tax program may be just as good and cheaper, provided yours is not a complex tax return.
The tax programs have a sale in February usually. The price can be as low as $29.99 and on no tax day, even better.
That should work for the 2014 tax return.

[Venuila]

We had something similar happen with H&R block, although no where near that amount.

They messed up DH's taxes a few years ago (probably 3-4 ago). He got reassessed and owed almost $900. I forget all the details but H&R paid it initially and we worked out a payment plan with them (I think we did $300 a month until it was paid).

That was the best they would do for us. Really upset me because it was their screw up. They gave DH cash back of $1200 or so when he filed. Had they of did it correctly in the first place he would of just received $300.

But at least with DH it wasn't a huge amount and he was still "up" from the return.

I've heard of them messing up a lot of people's taxes. Pretty scary that they messed your friends taxes up by that much! That's insane!

Oh I should add that they took off the amount he paid for them to do his taxes off what he owed. I told them we shouldn't have to pay them to screw up the taxes. They also have us vouchers to do our next years taxes free.


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Ugh, yeah I have heard of them messing up and people having to owe $100 - $1000 but $7000 is a little aggressive.
At least they did "what they could" for you! And probably only because you complained, my friend is the type to just grin and bear it but I am telling them to be a little more assertive. I just think it's ridiculous they can mess up like that and it's a "too bad so sad" situation. I would be losing it.

How much did H&R block charge to do the tax return? $50?
Doing it yourself with a tax program may be just as good and cheaper, provided yours is not a complex tax return.
The tax programs have a sale in February usually. The price can be as low as $29.99 and on no tax day, even better.
That should work for the 2014 tax return.

I'm not sure, I think they charge a base fee then a percentage based on your income level? Mommy brain >.<
My friend usually does theirs by hand. I don't know why they decided to go with H&R this year but don't think they'll be going back!

[Natalka]

That's a crazy high amount!

Found this on their site -

*If H&R Block makes an error in the preparation of your tax return, that costs you any interest or penalties on additional taxes due, although we do not assume the liability for the additional taxes, we will reimburse you for the interest and penalties.

https://www.hrblock.ca/services/guarantee.asp

[tjthemanto]

Go to the media..they hate negative publicity. Ellen Roseman from Toronto star , Pat Foran from CTV news etc.

Otherwise besides paying the penalty and interest , they won't do much..even that after you make them do it.

doesn't look like they will do much about the original amt owing , unless the media gets involved, in which case they might do it as a good will gesture.

[Cake]

Yes H&R should pay for the interest and penalties but your friend is responsible for the taxes owed. Did your friend get a very large refund or did something get missed and she was expecting to pay more? $7000 in tax is a lot of income (or deductions) that got missed.

[Venuila]

They would never go to the media, unfortunately. I doubt they would even go back for the interest/penalties.

Apparently there was a typo on H&R Blocks part, instead of putting $17000 on a line they forgot a 0 and put $1700.

[mulock]

It's almost like H&R Block purposely screws up your taxes if you don't buy their "oops it was our mistake" optional insurance coverage.

[Ciel]

My understanding when I did the training and one tax season in the 90s was that if CRA had an issue with a tax return prepared by H&R Block, H&R Block would discuss your return with the CRA on your behalf. There's a check box on the last page of the paper return or sticker that mentioned that. Not sure how that policy is communicated now.

Since Natalka pointed out the limitations of what H&R Block will cover if the error causes interest & penalties, at least now all know that going forward.

[Ciel]

I'm not sure, I think they charge a base fee then a percentage based on your income level? Mommy brain >.<

For Cash Back (you have to be expecting at least $100 back and there can be no self-employment income), there is a base fee on any refunds from $100 to a certain amount then it's an additional % based on the tax refund calculated-the portion above that certain amount gets the % calculation added to the base fee.

For regular tax returns, there's base fee for personal tax return and a limit to how many T4s (think it's 2) or other information slips you can have before you get fees charged for additional slips or if you have a business and your receipts are not tallied and categorized in advance, the preparer has to charge an accounting time fee to have a look and figure out the eligible amounts.

One location for tax returns had a back room with really old computers on which preparers had to enter line numbers from certain parts of return to ensure the amounts zeroed out at the end to catch any errors (still were doing paper returns then). Other location-we had to do the drill with desktop calculators. Since I did not manage to get the computer tax return portion of class entirely done (municipal bus strike) for the second time I took the tax course a few years later, I don't know what the verification process is.

[AmieT]

How much does H&R Block charge for tax (just curious)? My tax is very simple and I did it myself for years.

[Dan in Canada]

I would have an accountant take a look to see if there are any grounds for appeal. It may just be a miscommunication or honest mistake. Either way I'd deal with this asap as interest accumulates quickly on any amounts owing and its not deductible