Cathy Posted February 21, 2012 Report Share Posted February 21, 2012 Reviewed another return prepared by H & R Block and on the taxpayer's receipt is the following: Tax preparation $330 Compliance Fee 4 TOTAL $334 The taxpayer's check was electronically processed. Any one have any knowledge as to the "compliance fee"? P.S. And, yes, of course amended returns need to be filed for this taxpayer. I want to scream every time I see their commercial in regard to letting them review tax returns for errors...... Thanks! Cathy 1 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted February 21, 2012 Report Share Posted February 21, 2012 Just another senseless fee to stick it to you, but yet again people go to them :) Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 21, 2012 Report Share Posted February 21, 2012 I was happy to see two of them sitting idle in their kiosks in the front of Walmart yesterday! Quote Link to comment Share on other sites More sharing options...
DevM Posted February 21, 2012 Report Share Posted February 21, 2012 Here's what I found from their Website... Tax Preparer Compliance Fee (Per paid return). Fee consists of costs incurred by H&R Block to comply with new U.S. tax preparation registration requirements. Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 21, 2012 Report Share Posted February 21, 2012 It looks like it may be an add-on that passes directly through tot the company without the preparer getting paid commission on it. Probably its intent is to function as an offset for compliance costs and/or potential fines/penalties. Or it could be the tax preparation equivalent of the song by Thenardier (the innkeeper) in Les MIserables: "Charge 'em for the lice, Extra for the mice, Two percent for looking in the mirror twice. Here a little slice, There a little cut, Three percent for sleeping with the window shut. When it comes to fixing prices There are many tricks he knows Does just what he pleases, All in bits and pieces... " Quote Link to comment Share on other sites More sharing options...
Cathy Posted February 21, 2012 Author Report Share Posted February 21, 2012 Thanks, everyone! I figured as such.... Another one of my new clients this year brought in their 2010 prepared by H & R. After discovering 6 blatant errors on the return and finding that they were owed an additional $4,000 in refunds, I called the manager of this particular H & R office. Fortunately, the preparer is no longer working for them. Mind boggling to say the least! I just hope this person doen't go into business for herself! I know it also says a lot in regard to who is checking these returns at this particular H & R office. Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 21, 2012 Report Share Posted February 21, 2012 Wish I hadn't made that last post - now I can't get the darn song out of my mind. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted February 21, 2012 Report Share Posted February 21, 2012 Thanks, everyone! I figured as such.... Another one of my new clients this year brought in their 2010 prepared by H & R. After discovering 6 blatant errors on the return and finding that they were owed an additional $4,000 in refunds, I called the manager of this particular H & R office. Fortunately, the preparer is no longer working for them. Mind boggling to say the least! I just hope this person doen't go into business for herself! I know it also says a lot in regard to who is checking these returns at this particular H & R office. Hello Cathy, can you please share what were the errors, $4000 is a lot to miss. MAS Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 21, 2012 Report Share Posted February 21, 2012 I had a "compliance fee" increase this year too. I bumped my fee by $5 for all the crap we have to go through with the PTIN payments and the registration requirements for my wife. But I still have to pay her based on the new pricing. Dang, HRB out smarted me again. I could have cut her commissions if I added it like they did. tom Lodi, CA 2 Quote Link to comment Share on other sites More sharing options...
JohnH Posted February 21, 2012 Report Share Posted February 21, 2012 Doug - you could exclude it from her commissions retroactively. Just tell her it took a while to sort things out because Congress made last-minute changes at year end and you're allowed until Mar 15 to get everyhting right. Hey, that explanation has worked for every stock broker in the country. I think I'm going to implement a "toilet paper" fee for anyone who asks to use the restroom while getting their tax return done. And maybe a "soap fee" and a "hot air" fee for washing & drying their hands. Oh wait, I can't get away with the "hot air" fee - I'm already charging them for tax advice so that would be unethical double-billing. Quote Link to comment Share on other sites More sharing options...
jainen Posted February 21, 2012 Report Share Posted February 21, 2012 >>Compliance Fee 4.... costs incurred by H&R Block to comply with new U.S. tax preparation registration<< Yeah, that's fair. Registration was $69, so I recover that by charging $4 to each of my 17 clients. Quote Link to comment Share on other sites More sharing options...
Cathy Posted February 23, 2012 Author Report Share Posted February 23, 2012 Hello Cathy, can you please share what were the errors, $4000 is a lot to miss. MAS Sure..... The spouse became disabled during 2010 and started drawing social security. So did her minor children. Their social security was included on the parents return which in effect increased their taxable income and disallowed the $1,000 child tax credit that was due them in addition to increasing their income taxes. Rental income (real estate) was reported on Schedule C rather than Schedule E causing the taxpayers to pay SE taxes needlessly. On the Sch C was listed the name of a government agency as the DBA name. The government agency was the payer of the rent on the 1099-Misc. The state return left off a deduction for taxable disability income the spouse received as well as a tax credit for the loss of the use of limbs, as well as overlooking a couple of other smaller credits. The $4,000 difference is not uncommon at all with that local office. I cringe whenever I see an HR return come through my door. :o 1 Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted February 23, 2012 Report Share Posted February 23, 2012 >>Sure..... The spouse became disabled during 2010 and started drawing social security. So did her minor children. Their social security was included on the parents return which in effect increased their taxable income and disallowed the $1,000 child tax credit that was due them in addition to increasing their income taxes. Rental income (real estate) was reported on Schedule C rather than Schedule E causing the taxpayers to pay SE taxes needlessly. On the Sch C was listed the name of a government agency as the DBA name. The government agency was the payer of the rent on the 1099-Misc. The state return left off a deduction for taxable disability income the spouse received as well as a tax credit for the loss of the use of limbs, as well as overlooking a couple of other smaller credits.<< WOW! And some people think H&R Block is so great. 1 Quote Link to comment Share on other sites More sharing options...
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