Cathy Posted February 28, 2008 Report Share Posted February 28, 2008 :read: Just discovered today what the "Peace of Mind" with HRB is all about. I pointed out to my new client that her 2006 preparer (HRB) had included several thousand dollars listed on Sch B for "XYZ Mortgage Co, Inc." as interest EARNED rather than report it on Sch A as interest PAID on her home loan. I also told her that HRB attached a Sch B to her return as her interest earned (as incorrectly calculated by HRB) was over the threshold amount of $1,500 thus requiring the SCH B. I gave her two options: 1. After things slowed down a bit, I would be happy to prepare the amended returns (Federal and State) at no charge, but it would possibly be after 4/15 or 2. She could take it back to HRB now and have them prepare the 1040X and amended State return to correct their error. I also advised her to ask for a refund of the preparation fee HRB charged for filing the SCH B. Client was furious about her case and several other foul ups she has heard coming from the local HBR office so she took her 2006 return back to HRB: Client: Your office made an error on my Sch B last year and I'd like to have it corrected. HRB: Lady reviews the return and says "Oh, yeah, Jane Doe prepared your return. She messed up a lot of returns last year. Just look at all of those folders stacked up on my desk. All from Jane Doe! She doesn't work here this year. Client: O'kay, when can you correct my return. HRB: We'll do it now, but I see you didn't sign the "Peace of Mind" form so we will have to charge you. Client: What are you talking about? HRB: Jane Doe didn't ask any of her customers if they wanted the "Peace of Mind". But that's not our fault. She doesn't work here any longer. If you had signed it and paid the extra $30, we would prepare the amendment for free. Client: Like H##L you are going to charge me for correcting your error! HRB: Well, let me call my manager.....She told me to go ahead and prepare the amended returns. Client: O'kay...I'll wait. HRB: O'kay...your amendments are ready...$98 please. Client: What the S##T are you telling me? I'm not paying you ANYTHING for you to correct YOUR error. HRB finally gave in and told her she could have her amended returns at no charge but they refused to refund her their charge for the Sch B. Client was told by HRB that she now OWES the IRS $50 and will get back a $120 refund on the State. While on the phone with the client, I told her to find the 1040X and read the last figure on the bottom of the right column....It was a $400+ refund. Client will drop of the amendments for me to lookover before she mails them. Evidently, they didn't know how to read the 1040X results. Moral of the story: We all need to charge $30 for the "Peace of Mind" guarantee so we can be compensated for the work we have to do if we make an error on a return. Stories from our local HRB.....Priceless! Quote Link to comment Share on other sites More sharing options...
JRS Posted February 28, 2008 Report Share Posted February 28, 2008 This was a couple of years ago, but the basically same thing happened to a client who was my ex client who moved and now drives 4 hours to have me do their taxes. Same scenario, Jane Doe screwed up, we will amend and do this year's return. Client went back in to pick up returns and refused to pay the $200 amend fee and the $200 for the current return. Called me, I did the returns and all was OK, until six weeks later when the IRS notified them their current "mailed" return did not even come close to the "efiled" return. HRB had efiled the current return without any authorization. Three weeks later, a similiar letter came from Ca FTB. Both the IRS and Ca reps told the clents, that particular HRB office was in very deep trouble. (It opened under a new owner the following year and has since closed down. Quote Link to comment Share on other sites More sharing options...
jainen Posted February 28, 2008 Report Share Posted February 28, 2008 >>Client was furious about her case<< If you don't like what Block offers, you shouldn't go there in the first place. As far as I can see they are very open about their guarantee--excessively so. The standard guarantee is that they will pay any penalty and interest from their error, so at least you are no worse off. They will only refund tax prep fees if your tax liability was actually lower than they said, but that's not a forever guarantee. It only runs until the end of the year. The Peace of Mind -- which supposedly wasn't offered but she couldn't have missed it in a Block office -- extends the time limit to three years, which may not even cover all the time it is subject to audit. Where do they ever say they will fix errors that the IRS hasn't even challenged? No where. They say if they pay a claim it will be straight cash (reported on a 1099 no less!). The only free service they guarantee is audit assistance. Your client wasn't audited so it's entirely fair to charge for an amendment. If she doesn't like their guarantee, she is perfectly free to go some place else. Quote Link to comment Share on other sites More sharing options...
Julie Posted February 28, 2008 Report Share Posted February 28, 2008 It's been a long time now since I quit HRB, but the company policy (not always uniformly enforced) was that HRB will amend HRB returns for free. Have her call the phone number on the inside of her HRB folder. The one that came printed on the folder, not the one for the office she went to. We even amended returns from franchise offices, if they were prepared under the Block brand. The POM guarantee was in addition to the standard free amendments and p&i payments. (If client owed penalties and interest, HRB paid them with only the district manager's approval. POM had to be approved by someone in Kansas City.) >>Client was furious about her case<< If you don't like what Block offers, you shouldn't go there in the first place. As far as I can see they are very open about their guarantee--excessively so. The standard guarantee is that they will pay any penalty and interest from their error, so at least you are no worse off. They will only refund tax prep fees if your tax liability was actually lower than they said, but that's not a forever guarantee. It only runs until the end of the year. The Peace of Mind -- which supposedly wasn't offered but she couldn't have missed it in a Block office -- extends the time limit to three years, which may not even cover all the time it is subject to audit. Where do they ever say they will fix errors that the IRS hasn't even challenged? No where. They say if they pay a claim it will be straight cash (reported on a 1099 no less!). The only free service they guarantee is audit assistance. Your client wasn't audited so it's entirely fair to charge for an amendment. If she doesn't like their guarantee, she is perfectly free to go some place else. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted February 28, 2008 Report Share Posted February 28, 2008 When Henry & Richard were running the show it was a good company. Good customer service has been replaced by greed and arrogance. taxbilly Quote Link to comment Share on other sites More sharing options...
bstaxes Posted February 28, 2008 Report Share Posted February 28, 2008 Definitely greed. When I worked for Block many years ago they sold POM and Will Kits. The Will Kits were $39, or $69, I can't remember which. The district manager said we had to sell these kits, each preparer should sell x number of kits. I refused because on the front of the Will Kit it stated "not valid in New Jersey". They said we had to sell them. That is funny because we live and work in NJ. That was probably the straw that broke this camel's back. I quit after that. It was ripping the public off. That's also what I thought of their POM. Quote Link to comment Share on other sites More sharing options...
jainen Posted February 28, 2008 Report Share Posted February 28, 2008 >>I quit after that<< I quit when they made me sell "Block check," $25 to review a return. I felt that made me a paid preparer under Circular 230. Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted February 28, 2008 Report Share Posted February 28, 2008 >>I quit after that<< I quit when they made me sell "Block check," $25 to review a return. I felt that made me a paid preparer under Circular 230. I quit (10 years ago) before I even started when I realized that the pay was based (at least partially) on volume, as opposed to quality. Sorry...but instead of doing 3 returns at 15 minutes each, I would rather do 1 return in 45 and know it was done correctly. Quote Link to comment Share on other sites More sharing options...
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