Discrepancies in worksheets (both from IRS)

[davew9128]

FYI, I re-did the HRB sections and to no avail. I put in a request with customer service, should hear back in 48 hours. I think I'll be using TurboTax next year, unless this turns out to be my fault. Will let you know what they say.

Imagine going through all the anguish and stress when you could have hired a competent tax pro who could have done it in a fraction of the time and no anxiety,,,

 

[ryanf1475]

Imagine going through all the anguish and stress when you could have hired a competent tax pro who could have done it in a fraction of the time and no anxiety,,,

I've done this before, only to find a one-thousand dollar mistake that he made, but thanks for the tip.

 

[LdiJ]

I've done this before, only to find a one-thousand dollar mistake that he made, but thanks for the tip.

If you insist on doing it yourself, you might consider doing your return with several different online providers to see if they all come up with the same result or not. Bottom line, if you enter the data accurately into the online software and answer the questions accurately it is going to be accurate in most cases. The problem with online software (in my opinion) is that it is too easy to misinterpret a question and therefore to answer it inaccurately.

I have been a tax professional for more than 35 years. The one and only time I tried to use online software for my own return I got a circular error that I simply could not resolve. I was working for a new firm and wasn't sure I wanted to do my personal return there or not. After fighting with the online software I gave up and did my personal return on the professional software at work and got the correct result. Professional software is not question and answer format. It is going and putting the data where it goes.

Since tax professionals are human beings errors can happen. However, tax professionals take responsibility for those errors and absorb the penalties and the work in correcting the errors.

 

[ryanf1475]

Update: Wow! After some back-and-forth with H&R Block customer service, plus a promised return call that was never returned, they gave me a free code for "Tax Pro Review" since the rep was not qualified to answer my question about the worksheet.

(For some foreshadowing, this "pro" is actually just a tax analyst, not a CPA). During the first review, she missed that I indicated recharacterized contributions to my IRA, but I only entered "0" for the amount because the interview asked me only for contributions made before the April deadline, and I made mine in June (the IRS gives you until October). This is an understandable oversight. So I told her this, and for the second review, I saw that she entered the amount as a contribution made before the deadline. She explained that the software wouldn't allow for contributions made after the deadline, so she indicated it was made before deadline. Fine. But now that my IRA contribution amount was entered, I noticed the wrong worksheet still being used, so I asked her about it. After 6 days of silence, she got back to me with the third review, which still used the wrong worksheet. The only revision she made, apparently, was to change my IRA contribution from $3,850 (the true amount) to $6,000. I have NO IDEA where she got this from, which is wrong since I only contributed $3,850.

In her message, she said nothing about the worksheet, but instead said something about adding Form 8880 Saver's Credit (for which I'm not even eligible), and explained that it gave me a higher deduction--as if I would jump with joy and just click "Submit Return." Well, of course, my deduction was only higher because she invented an IRA contribution of $6K that never happened. At this point I would like to call customer service and ask for a refund of the original $75 that I paid and go elsewhere.

But with the paid HRB "Tax Pro Review," the return now indicates that it was prepared by a tax professional. Doesn't this mean they are responsible for any errors? Should I just submit it as is (my refund would be way higher) and let them foot the bill for any penalties? What do you all advise? Thanks!!

 

[adjusterjack]

But that means H&R Block is wrong?

Wouldn't be the first time.

 

[adjusterjack]

But with the paid HRB "Tax Pro Review," the return now indicates that it was prepared by a tax professional. Doesn't this mean they are responsible for any errors? Should I just submit it as is (my refund would be way higher) and let them foot the bill for any penalties? What do you all advise?

Just because somebody is responsible for something, doesn't mean that responsibility is ever going to happen.

If your taxes are so complicated, I suggest you find an expert that can get it right.

 

[Taxing Matters]

Should I just submit it as is (my refund would be way higher) and let them foot the bill for any penalties? What do you all advise? Thanks!!

Absolutely not. You know the return is not accurate. When you digitally sign that return and transmit it to the IRS, you are affirming under penalty of perjury that the return is correct. The IRS won't refund you a penalty based on the idea that you'd file it incorrectly and then fix it later with the tax firm paying the penalties. Note that you'd still be liable for interest on the underpaid tax regardless of anything else. So you'd still have money coming out of your pocket in the end.

I agree you should pursue a refund from the tax prep company for the fees you paid for the service. It sounds like the people it employs are not very good. So if I were you, I'd never use that service again. Go to a real tax professional (enrolled agenct, CPA with a masters degree in tax or a tax lawyer) and who regularly practices in the area of tax law to get this issue resolved correctly. Get the return done correctly now. If you use the figures the tax prep firm did, that may come back to bite you in future years, too. Although I am a tax attorney, I wouldn't suggest you see an attorney for this. Attorneys charge more than CPAs and enrolled agents, and this is not something that requires the legal expertise of a lawyer.

If the IRS discovers you knew the return was wrong and you submitted it anyway, you'll likely get hit with a 75% fraud penalty. The tax prep firm won't be liable to refund that penalty to you.

 

[ryanf1475]

Absolutely not. You know the return is not accurate. When you digitally sign that return and transmit it to the IRS, you are affirming under penalty of perjury that the return is correct. The IRS won't refund you a penalty based on the idea that you'd file it incorrectly and then fix it later with the tax firm paying the penalties. Note that you'd still be liable for interest on the underpaid tax regardless of anything else. So you'd still have money coming out of your pocket in the end.

I agree you should pursue a refund from the tax prep company for the fees you paid for the service. It sounds like the people it employs are not very good. So if I were you, I'd never use that service again. Go to a real tax professional (enrolled agenct, CPA with a masters degree in tax or a tax lawyer) and who regularly practices in the area of tax law to get this issue resolved correctly. Get the return done correctly now. If you use the figures the tax prep firm did, that may come back to bite you in future years, too. Although I am a tax attorney, I wouldn't suggest you see an attorney for this. Attorneys charge more than CPAs and enrolled agents, and this is not something that requires the legal expertise of a lawyer.

If the IRS discovers you knew the return was wrong and you submitted it anyway, you'll likely get hit with a 75% fraud penalty. The tax prep firm won't be liable to refund that penalty to you.

Thank you. I will call H&R Block tomorrow and request refund. I thought I was safe with a big brand like H&R Block--not so.

 

[ryanf1475]

Got the refund of $75 from HRB that I paid for their Premium product. NEVER AGAIN!!

 

[Bali Hai Again]

Got the refund of $75 from HRB that I paid for their Premium product. NEVER AGAIN!!

Great! Please keep us updated as to the ultimate solution that finally solves your tax issue.

 

[Taxing Matters]

Got the refund of $75 from HRB that I paid for their Premium product. NEVER AGAIN!!

I'm glad you got the refund so quickly. Hopefully now you can find a tax firm that will do it right for a reasonable fee; one that you'll be able to stay with in future years and feel confident that your tax matters are being handled correctly. The really big chain tax prep places work on a volume basis to keep fees low. A number of the tax preparers they employ only have a few weeks or a few months in house training in taxation before being let loose to prepare returns for clients. They do that trusting that the software they have developed will guide their employees to the right result in the vast majority of cases. But they do screw up some of those returns and the under trained employees don't see the problem and don't know how to fix it. Ideally then they'd elevate the issue to one of the tax pros the company hires to work it out. Unfortunately, that doesn't always come out well. I've seen my share of taxpayers who had returns done by the big name tax prep firms that really messed up the return. The person doing it was clueless even with the help of the company software. Most returns they do come out fine. But they seem to have more than their share of returns that have errors. Smaller firms that have real tax experts who will take the time to understand your situation and figure out the right way to present it on the returns may cost you a bit more in fees, but you often get better service from them too.