Beware H&R Block Ripoff!!!

[JDP]

I wanted to make everyone aware of what just happened to me at an H&R Block office. Normally I do my own taxes but in 2006 my wife started a cleaning business and we had income and expenses and I wanted to make sure it was reported correctly. I asked the rep for an estimate of charges prior to going ahead. She came up with a total of $374 as a rough estimate. I thought it sounded high and she stated that she "had some wiggle room". I told her I planned on no more than $200.00 and she immediately dropped the price to a firm $225 without looking at what I had. That's a 40% discount which is outrageous. If anyone is using them do not accept the price they quote you!!! I will be trying to figure out the schedule C on my own and deal with the IRS if there is a mistake. I will never go back to H&R Block.

JDP

 

[Michelemarie]

Wow! That is not right! I'm glad you got it to be what you wanted. Good luck on taxes!

 

[JDP]

Wow! That is not right! I'm glad you got it to be what you wanted. Good luck on taxes!

No it's not. They take advantage of the middle class people who don't have a full time CPA and just want their taxes done. With the tax codes so confusing many people feel overwhelmed and are so affraid of the IRS they look to companies like HR Block with trust, not knowing that they have a 40% and probably more wiggle room in the prices they are charging you.

JDP

 

[BlueCat]

I can pretty much guarantee that these people don't have a CPA either, so don't think you're getting the benefit of that kind of schooling when you go to places like that. H & R Block has a 4 or 6 week tax preparer's course that anyone can take to qualify them to prepare returns. I've worked for tax accountants who would take their courses each year just to brush up on new tax laws, and then they would use the knowledge in their own tax preparation businesses.

BC

PS - I'm editing to say, however, that I really don't want to turn this into a H & R Block bashing session. I'm not sure I agree that we should criticize any one business by name here. Who knows where we all work. I work for the federal government, and I work pretty darned hard, and I hate it when people make lazy government worker cracks.

 

[Buck]

I work for the federal government, and I work pretty darned hard, and I hate it when people make lazy government worker cracks.[/COLOR]

Amen to that. BC. I spent thirty years in federal service and resented the **** out of those remarks.
Buck

 

[amber]

I used H&R for years but I think their fee's are just too high, so I switched to another company this year who's fee's were much lower and my return was higher.

 

[JDP]

BC

PS - I'm editing to say, however, that I really don't want to turn this into a H & R Block bashing session.

BC it can be a bashing thread or at the very least in informing thread about this company's practices. I looked at this company similar as I would a retail store. Color me stupid if you feel I'm just naive. When you go into a store there is a set price for an item. If you go into a place that offers service such as an oil change, hair salon or baraber, there is a specific charge for a service. You don't go to your barber and he/she tells you your haircut is $30.00 but if your complain they charge you $18.00. If I hadn't asked for a estimate before we started they would have charged me over $400 because they had some additional forms. This place is crooked and it should be put under the spotlight. I called thier corporate office and they told that there room for negotiation on their prices but 40% seemed a bit much. When I go in to buy a car I am prepared to negotiate but when I went to get my taxes done I wasn't in that mind set. If this is the case they should advertise that you come on in and negotiate your best tax prep deal... or we will beat anyone's price. This place is a scam!!!

JDP

 

[Loprraine]

I've heard many tax places use the same on-line tax programs that most of would at home. We buy it every year, costs about $25.00CDN. If your taxes are fairly straight forward, I'd recommend it. Just a thought.

 

[amber]

I've heard many tax places use the same on-line tax programs that most of would at home. We buy it every year, costs about $25.00CDN. If your taxes are fairly straight forward, I'd recommend it. Just a thought.

This is true here as well, however, you dont get audit support should you make an error on your own taxes if you do them yourself, whereas with other businesses, you do get that additional insurance. (assuming you have given correct information to your tax preparer that is).

 

[suzyQ3]

I'm not sure I agree that we should criticize any one business by name here.

I'd be curious as to what the admins think about such anecdotal criticism. It could open up quite the can o' worms.

 

[amber]

In this thread, I think it best to just refer to tax companies, rather than a specific one. I would think that DC would not want to pin point any certain company. Just my guess.

 

[kitchenelf]

He is telling about an experience he had. He posted what he thought would be informative to others.

JDP stated he did not want to turn this into a bashing thread and I believe him. And I think the post will be watched to make sure it doesn't turn that way.

We have been watching this thread - and will continue to watch it.

This might fall under the "Discuss Life".

I think with JDP making the statement he did people will follow suit and no bashing will occur. People may tell their experiences I guess. As long as this thread stays civil it is ok so far.

 

[college_cook]

If you're a small business owner it's probably a good idea to get yourself a CPA.

 

[Candocook]

It is possible that these basically seasonal employees are independent contractors and this guy was willing to take less, but still make a little.
They are nowhere NEAR CPAs--you and I could walk in off the street and be "trained" for tax season. And yes, they just plug it into a computer tax program, just like your CPA's firm does. With the latter--and with the tax prep companies--the return is reviewed by a "CPA" of some sort before letting it go out.

 

[suzyQ3]

This might fall under the "Discuss Life".

True, although it was "In this world nothing is certain but death and taxes."

I think you're right in that this was just a description of a personal experience -- much like somone complaining about a line of cookware or brand of TV -- and not anything that should be construed as defamatory. Of course, that's a nonlegal opinion, since IANAL.

 

[tropical cooker]

cpa's lack of expertise

You would be surprised at the lack of tax expertise that even cpa's have. Many of them do not specialize in tax and know very little when it comes to taxes. There are people who are Enrolled Agents. The EA's specialize in tax and that is all that they do. They know much more about taxes than most CPAs. If I remember correctly, only 1/4 of the CPA exam is on taxes. The EA exam is 4 parts long and only is about taxes.

 

[JDP]

My reason to make the post was to mearly inform anyone interested that if you do use H & R Block you should go into with the mentality you would use to buy a used car. I don't mind paying a fair price for a service, and when somone is doing my taxes I would like to feel they are on my side making sure I get every tax advantage possible. I don't feel comfortable using a company that is willing to charge an inflated rate unless I question it. The fact that their rep could only give me a rough estimate explaining that it depended on the number of forms she would have to use and then quickly switch to a firm price when she felt that she was losing me threw up a bunch of red flags. This business practice was confirmed when I contacted their main office and they said that indeed their was room for negotiation on their prices , but maybe the 40% was a little excessive. My experience with this one rep at this one outlet and the response I got from their main office left me feeling that they are a shady outfit that will knowingly take advantage of ignorant consumers if given the chance. Just a buyer's beware.

JDP

 

[Run_Out]

I think at least one of the tax box software offers audit support... I don't know which one but they have a commerical on tv.

later

 

[BlueCat]

Actually, I was stating that I didn't want it to turn into a bashing session because of what I was going to post - about them not being CPA's and that anyone can take one of their courses in tax preparation - not because of the original post. I did, however, want to add that little bit about criticizing one's livelihood, because, as I said, I'm a government worker, and get quite sick of all government workers being looked on as lazy. I thought, by naming this company, we could potentially be doing something similar with someone who worked for Block.

BC

 

[JDP]

My taxes are done.. it cost $15.00 at taxact.com. Both Fed and state, e-filed and I should have my refund in 8-16 days. It took 2 hours but I saved upwards $385 if I had used H&R. It was very simple even working throught the Schedule C for personal businesses.



JDP