FISCHER, CARRILLO & ASSOCIATES

H & R Block - Beware!

 We have never been a large supporter of the Block for many reasons. Allow us to explain why.

Tax Preparation Class

Lets think about this for a minute. It takes only 6-8 weeks for someone that has never touched a tax return to complete the course and become a licensed tax preparer

Examining the process. During the 6-8 weeks of course study, they work at a rapid pace to cover the key points of tax preparation. Due to the pace of the class they merely touch on points. Yes, there are exams during the course. but, keep in mind; all exams are open book, making the exams hard to fail. Ultimately, the class requires a final exam, but the entire examination is open book. In order to complete the class successfully and become licensed, one must pass the class with a grade of at least 70%. Can you be certain that this person knows how to apply the nuances of IRS code in fine detail?

Tax Preparation Methods

So now you have the basics. Let's think for a second: you walk into H&R Block and sit down at a desk; you know this person is licensed; you have brought your documents to an H&R Block preparer believing that they know what they are doing, right? Well, it is not the case that they know what they are doing. You are most likely speaking to a recent H&R Block graduate who is green, and inexperienced. They won't know all the questions to ask; they certainly don't know which reported percentage ratios on your tax forms the IRS will flag for audits. Frequently, they simply don't know how to answer all of your questions accurately. While you sit there, they ask you a couple questions. Within 10 minutes or less, they expect to summarize your life story and the complexities of your individual tax situation. Then, they prepare your return while you wait and kaboom your done and on your way....You're thinking, that was fast!! They didn't ask too many questions!! How easy!! WOW!! That was great!! Was it really though? Probably not.

Many of our new clients each year transition from H & R Block, and it never fails to make us shake our heads in disbelief.  Almost every return we examine are riddled with errors and or missing deductions that you the taxpayer should be entitled to deduct and reduce your tax liabilities.

One notable case last year:

A recent client that came to us moved to California late in the tax year. California Standards considered him a Non Resident; he had income from another state as well. His fiancee had a similar tax situation with income in two states. The H&R Block preparer instructed her that the income from the other state was additionally taxable in the state of California, which amounted to double taxation. The inaccurate position of H&R Block increased her tax liability dramatically, since additional California Income Tax had rightly not been withheld from her non-California wages. Only because the boyfriend decided to come to us rather than H&R Block did he discover that they should have been considered a Non Resident and filed the 540NR vs. 540. Additionally, all the income from the other state was not taxable in California. After informing our client of this error from H&R Block, they returned to the Block to complain. The preparer informed them that since they e-filed the return, it would take several weeks for the return to be processed. Only after waiting several weeks could an amended return be completed & filed for both the Federal and State. In the meantime the State of California gets to keep their money. That's definitely not taxes made easy, nor taxes done right!

Tax Problems at H&R Block