Lessons from H&R Block

OK…I’ve had it with all of the H&R Block ads telling everyone on TV to “Get Your Billions Back.”  If their clients are getting refunds of that size, then their tax planning is all wrong.  Block even have an anti- CPA YouTube video - https://www.youtube.com/watch?v=AJcBK1DCrbo

I have seen the following from H&R Block over the past year alone:

·         A corporate client had me review their Block prepared individual tax returns.  Block missed their real estate taxes, auto excise and self-employed health insurance deductions resulting in them overpaying their tax by $8,600.  When they had Block amend the returns (for a fee) the Block person actually had the audacity to say “I love it when we can save you tax dollars.”

·         A UK citizen but US resident has been living in the US since 2012 and has bank accounts back in the UK.  He had been using H&R Block from 2012 – 2014.  Well, the United States has this little filing called FBAR (Foreign Bank Account Reporting) where US tax filers need to report all foreign bank accounts with balances greater than $10,000.  The penalty for non-compliance is $10,000 for EACH account.  Thanks Block.  You left my new client with $30,000 worth of potential penalties by not knowing this rule.  It may be possible to fix this but the exposure is still there and it is going to cost my client $$$ to have me try. 

·         I met with a prospect that had used Block to prepare their S Corp. returns (huge mistake).  Block incorrectly recorded their balance sheet (not even needed on return) causing possible basis issues for the shareholders.  The return was just wrong! 

So Block, I'll answer the questions in your YouTube video:

• At my firm a CPA with 20+ years of experience will actually prepare your return. 
• You can sit with us at any time. 
• We don’t use paper.  We do everything electronically when possible.
• We have gone through numerous IRS and state audits and stand behind our work.  Of course, there are additional fees associated here.  When a Block employee represents you they are really there for the company CYA and not your benefit. 

Most Block employees have taken a 10-week tax class and are corporate franchisees.  Debi and I are both CPA’s, have degrees in accounting (I have a Master Degree in Taxation from Northeastern) and have been doing tax work for 20+ years. 

Oh, I have also seen Block’s pricing and most times, we are less expensive. 

Why pay more to have them file incorrect tax returns?

You make the call.