NT - H&R Block ripoff

[GeneInAlabama]

I cannot believe what I just received. A new client brought in last year's tax return prepared by H&R Block. She was a student and had W2 wages of $383.00 income for the year. She had no other income. She received $29.00 EIC and paid I don't know how much to have the return prepared. I'm sure she paid a lot more than $29.00 to have the return prepared. I know there are other preparers who will take advantage of people, but I believe H&R Block is among the worst. I'm not saying that all H&R Block preparers would do that, but entirely too many seem to be too ready to do whatever they need to do to make a buck. It seems that the company encourages that.

Thanks for letting me vent.

[Diane]

New Client - H&R prepared her tax return last year. 1040, small Schedule C (2 expenses), state, 2 W2's, 3 kids, no interest, no itemized deductions

Charge was $446.00.

Diane

[bstaxes]

That price is a ripoff. Big city or rural area? I used to work for Block and hated their fees. Nickel and dime this and that and clients keep going back. That return I would have done for 100-150. That gets my dander up.

[joans]

New client - Went to Liberty last year. Single, w-2's itemized. Charged $261 - forgot to take 2 years worth of paid property taxes off of Sched A. We did 2008 and charged lot less and told him we would amend 2007 fora price, but suggested to go back to Liberty as they are the ones that screwed up and need to fix for nothing. H&R Block not only one's who are overpriced.

[ILLMAS]

I too agree some of those places are expensive, I think I know why they have to charge so much, they do a lot of advertising and somehow they need to cover the cost of the commercials and overhead. Us smaller people don't have the budget to advertise like they do. My advertising budget for 2009 is zero, but I have rent to pay, utilities, telephone etc... then whatever is left over is my profit.

[David1980]

They also know that the average EIC return is big. Big enough that the taxpayer isn't going to notice an extra $200 in fees. I was a preparer at Block my first year in taxes (and that's one of the major reasons I didn't go back for a second.) The downside is that if someone barely qualifies for credit the fees are more than the tax benefit. I had one return where the 8880 created the return to flip from a 1040-EZ to a 1040-A which increased price and then the 8880 was being charged for. He was getting a $4 saver's credit. Prices more than doubled on that return. I think we ended up lying about him being a student or something in order to trick the system into not giving him the credit.

[taxtrio]

My old friends that still work at Block are not happy about the fees and this year they are completely locked out of any way of override the fees, and here in Michigan ... no more coupons. They used to try and lower the price one way or another in the program to try and save the client... They tell their District Managers that clients are leaving and complaining of the prices. The management tells them the same thing each year: "It's not the price, it's the service.

If you gave better service there would not be any complaints". It's not the preparers, it's the corporations mind set these days. It used to be a great place to work 20 to 30 years ago. But ever since Henry and Richard Block retired and CEO's are running the place it's just not the same. Very stressful to work for HRB now, many of there best have left or are about to.

Taxtrio

[AnnieR]

I think the worst two I have seen this year were new clients who were referred to me by others. One had a 1040 EZ, one w-2, MFJ and by the time he left the office he had paid $280 for a small RAL, and a "promise" that the remainder of his refund would be in his account in 7-10 days!!

The other one was a young woman, 1040EZ, $92 HRB fees, 29.95 Bank fees, on a refund of $404, and "The Refund Anticipation Check direct deposit will be available in about 8-15 days for the estimated amount of $282.05."

Maybe it is advertising costs, but if these costs were widely known, maybe prospective clients would think before they went there====no, that would be too easy!

AnnieR