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Consumer Affairs


H&R Block Taxcut


Consumer Complaints & Reviews

On 4/15/10, I filed my taxes with H&R Block in Bullard, TX. On 8/16/10, I met with Kristi in the Bullard office, to get a copy of my W-2, that I needed for financial aid. I had previously noticed on my return, that whereas the form for education credit was filled out, the amount was not transferred to my actual return. I asked Kristi about this, and she verified that it had been overlooked by their agent, and she redid my return, which showed an additional $2,409, due to me. She stated that it would take upwards of 10-12 weeks, and I should not contact her again until then.

On 11/1/10, I called the local HRB (Trish), and was informed that my return was being processed, and to call back in a week, if I have not gotten my return. On 11/8/10, I called Trish, and she stated that Kristi said with all the amendments being submitted in October, it could take a while for me to hear something. I asked if they had any status for me, like did the IRS have my amendment? Was there an expected date they would process it? Anything! Trish said Kristi was out sick, and I would have to call her back on Wednesday.

On 11/9/10, I got smart and called the IRS myself! They have no record of my amendment. On 11/10/10, I called Kristi and pretty much told her that I am over this. I want HRB to refund me the money by Friday. After all, why am I allowing them to put this all on the IRS? They are the ones who ** up my return. I ended up talking to her manager, and then the local owner. Both proved to be totally useless. They wanted me to come in and sit with one of their agents, and call the IRS together. Why? They couldn't give me a reason. Finally, I just posted on Facebook to HRB. I am trying to find someone at corporate, who I can email, and who may care about the inadequacies of their Texas offices. On 11/11/10, Keith from HRB (online media) called and took all my information. They opened a case, and said I will hear from someone within 24-48 hours.

It was 11/15/10, when I called HRB because guess what, they never called me! I spoke to two people, and heard two different things! 1 said that Kristi was supposed to follow up with me. Why would they have her follow up with me? She is part of the problem! Number 2 person said she sees that HRB tried to contact me to close out the case. Really? Then why am I calling you? She informed me that someone would call me by the end of the day, but I could call back if I wanted. No one called and so I posted to Facebook again. I got a response via Facebook saying, I needed to contact the IRS. This is so ridiculous!

In February of 2008, we purchased a home. We had heard about the First Time Home Buyers Credit, so when we filed our taxes using H&R Block Tax Cut software, we filled in all the blanks concerning the credit. We were approved to get the credit. We sent our taxes by e-file to the IRS, who accepted it on March 2, 2008 and sent us our refund including the tax credit.

Everything was fine until this past week when we received a notice from the IRS stating that we did not qualify for that credit and that we were going to have to pay it back. We didn't know anything about paying it back. When we looked into it, we saw that anyone who got the credit in 2008 had to pay it back. We thought a credit was a credit not a loan. We don't even qualify like others for the 15 annual installments to repay the credit. We will be hit with penalties and interest, all because H&R Block Tax Cut and the IRS in 2008 qualified us.

We filed and was accepted before the April 9, 2008 enactment for the credit. We tried to talk to H&R Bloc Tax Cut, but because we had a computer crash and do not have the data file of our taxes anymore were told, "You need to make arrangements with the IRS to make payments, we can't help you." We do still have the hard copy of our taxes that year and worksheets plus the emails showing that we used their software that year to e-file our taxes.

I contacted the IRS and asked what date I put on it just to make sure, because the person from Tax Cut said I had made a date mistake is the only way I could have qualified. On form 5405 the date entered was Feb. 6, 2008. I put the correct date. We are being penalized for something that H&R Block Tax Cut and the IRS should have caught and told us that we did not qualify for. Please explain to us why this is happening. We can barely pay our bills and now the IRS wants what little grocery money we have left. We can't afford an attorney to help us. Please say you can, or know who can help us.

When I did my 2008 taxes, using the H&R Block's 2008 Tax Cut premium, I declared a $5000 capital stock loss. The tax program used $3000 to offset 2008 income. When I began my 2009 taxes, using the H&R Block's at Home Deluxe edition, it did not pick up the extra $2000 capital loss and pass it into the 2009 edition.

I noticed that the 2008 edition did not have a place for the carry forward to be printed in my file copy and perhaps it has no software variable to save the carry forward amount. Thus, the 2009 edition has no variable in which to put the amount. I do not have their software code, so I am unable to determine the problem on my own.

I reported my discovery to H&R Block last week but no response yet. I may have made a mistake somewhere but cannot see how. It appears to me that the software does not carry any excess losses forward into future years. I wonder how long this has been the case and how many taxpayers did not catch this mistake and thus paid taxes on up to $3000 in extra income. If their software does not have the ability to carry forward excess capital losses then the taxpayer will pay tax on a increased income.

I purchased my state (Alabama) tax e file service. It said that the funds would be deposited within 8-10 days directly into my account. This is why I chose this option, it was guaranteed. It has been 3 weeks and when I called the state revenue department to make sure that they received my return, I was told they received it but Alabama had to no funds available to pay the tax refunds and that HR Block should have known that. I guess it is posted somewhere, or electronically posted to these companies who make and regulate the tax software. Alabama will be paying refunds in 8 to 10 weeks. So basically, HR Block took my money for e file when there was no e file available. My question is did they have knowledge of the inability to pay refunds from Alabama. And since it is an online program, did they take diligence due their customers to notify them of this discrepancy? What about a banner ad that could have been added to their online program, this may have solved their (my) problem. And like everyone else, there is not a phone number to customer service to correct this problem.

I did however, talk live to what HR Block says is a live chat ad visor, only to find out it is just a computer with answers to only specific questions. If you don't put one of their pre-made questions in, the computer doesn't understand. So their live chat is just as much a fraud as their tax program is in my opinion. I do agree there should be a class action suit against this company and I would offer to do some research for it. All I can say is that I feel that HR Block has deceptive practices and they need to be looked at. I am not so concerned with getting my money back because I am not sure it will happen without a class action suit. I am however very concerned when a "reputable" company takes food from the mouth of the consumer, (possibly a ridiculous amount of money) without supplying the product that was promised, then guarantees it and doesn't give you a valid contact number. It appears to me that every TV commercial was just another incident to solicit a victim.

I filed my state tax returns on 4/3/2009, and I emailed the state of Ohio to find out why I have not received my refund yet, and they said it was not filed. I paid for the filing through HR block online, they took the money out on 4/3/2009. Not sure if the state will charge me for filing late.

I used the free file to process my tax return with HRBlock's online program (a link was provided on the IRS website). I was eligible to efile a federal return because of my low income last year. The website lead me through the federal return and when I went to efile it the program led me to the State of California return and it input the information to produce the state return. When I was going to send it electronically, the program indicated that I must pay $34.95 to efile the state return.

After spendin much effort and time to find a way out of this, to uncouple to two returns and efile the federal only, there was no apparent way to do so. So I paid the $34.95, only to be led to the next page which told me that California did not accept efiled returns. I then tried to find instructions on how to get my payment refunded but could not find this anywhere on their website. Since I could not efile the state and had found no way to separate the federal from the state I was forced to print the returns and mail them.

the next day I went to the bank and filed a request to block the charge. Then I tried to find a number on the taxcut website that I could call to get an explanation and my money back. There was no number for customer service, so I finally found an 800 number on the main website for HR Block, I also called a local office, who told me they have nothting to do with TAXCUT FreeFile, they gave me an 800 number which referred me to a technical assistance number. When I spoke to the agent Michael, he began to interrupt me and argue with me.

I asked to speak with a supervisor and he said there was none, that they "walk in and out sometimes" but that he was by himself and there were no supervisors or managers to discuss this with. I explained that the online program which was supposed to be for income-qualified people to freefile, tricks and traps the user into the $34.95 fee for the California return. Michael told me that this fee is for using their software. He was very rude and I asked him if this was being recorded he said yes. I said good because your customer service is terrible. He put me on hold for a long silence and then came back to tell me that my issue would be sent to the "escalation dept" whereafter he took my name, address, email and phone and then somehow already had my home phone number, which I had not provided. He said all of this information would be used for someone to get back to me, maybe someone by the name of Teresa.

It has been 24 hours and there has been no call, no email, so I called back, they basically told me that there was no way I am getting my money back. I don't know if the "escalation dept will ever contact me. TAXCUT FREEFILE is not free and traps low income people into paying for a state return that can be completed for free on the State of California website. I want my $34.95 back. Thank you.

I used Tax cut to file Federal, CT and NY returns for 2005. Almost 3 years later (just before statute tolled), CT audited us over how much reciprocity CT would give us for the NY income taxes paid. The CT Dept of Revenue just told me that they had audited hundreds of similar returns and found the same error by the Tax Cut progam on all and were coming after all of us for the taxes and 3 years of interest and penalties even though we had filed in good faith and properly followed the program. CT law gives reciprocity for the lesser of taxes paid to NY or taxes withheld but Tax Cut instructs you to use the NY taxes withheld shown on your w-2, which is not necessarily the lesser amount.

3 years of interest, penalties plus unexpected taxes and hassles.Potential audits for 06 and 07 returns that use same program. Tax cut 08 still uses the wrong info from the W-2 and doesn't provide for using the lesser of the amounts.

Purchased H&R Block TAXCUT software, Basic Federal edition. Package and instructions did not indicate in order to use it you had to download updated tax forms. Tried to use internet to get updated forms and it kept cutting out and telling me to try again later. I am on dial-up and if this does not permit a download the box should say so - prominently.

Also states if you're not completely satisfied, return it within 60 days and we'll refund the purchase price less shipping, handling. . . see inside for details. Nowhere, inside, outside, or anywhere has info on where to send the package for the refund. Making entries using the software was straightforward, but it was a complete waste of time and money because I could not complete my return, nor could I find a reference that would let me request s refund.

Cost was $19.99, but it wasted my time and gave all sorts of guarantees but no way to get to them. An 800 number would be a great help - they give all these guarantees, but make it impossible for one to use them.

Purchased their Tax Cut Program at Walmart. The cover plainly states: New! 5 FREE federal e-files included. When I opened up the package, it said: One free federal e-file. I used the program for 3 federal returns. I would have had to pay $19.95 I believe was the figure, if I wanted to file more than one. They are very careful not to give any address or telephone # to reach them. They gave an email address. When I tried that address, my computer said no such address.

I did not suffer any damage because I did not pay to use their efile. So I did not have the advantage of efiling. Actually, their program is good. I am not looking for any remedy, just would like to warn others.


I filed my taxes for 2008 using H&R Block TaxCut Online Services. My refund to be deposited into my account by H&R Block was suppose to be in the amount of 2,362.10. That amount is minus their 44.90 fee for using the the online site 14.95 and for their Simple Pay Fee 29.95. H&R Block only deposited 2,203.10 shorting me 159.00 with no reason or notice. I was not contacted in any way, shape or form. Upon noticing this,

I then called H&R Block and was told the only thing he could tell me was that it was an authorized taking. He could not tell me why or what for. He gave me another number to call for H&R Block Bank. After calling them 3 times and being disconnected and put on hold for about 20 minutes I spoke to a gentleman who told me it was for a past fee owed for 159.00 I told him that fee had been paid over 1 year ago now. I gave him the check number, the date it cleared my bank, and the amount (159.00) he said he didn't need that info. and they never showed any payment, just the amount due. I responded that amount has been paid I have the proof right in front of me, who do I send it to? He said he didn't know.

All he could do was open a case file for me and someone (he didn't know who) will get back to me within 15 business days. I responded by telling him that was unacceptable to me. I explained I lived on a very strict budget and because of their unauthorized taking, caused me hardship. I now have to alter my rent payment and have no grocery money. He offered nothing except to wait for a call in 15 business days. I got no apology, no nothing. They immediately took out 159.00 but want me to wait 15 days before anyone will even talk to me about this unauthorized taking. So I'm out 159.00 and no one will help me. I have proof that debt was paid over a year ago. This is a clear cut case of unauthorized taking. As I stated before, I got no notice, information, nothing that they were taking this money. They just took it without my knowledge and now, tell me they can't do anything for at least 15 days???

I need MY money now. I can't afford to wait! If they took it immediately, why can't they give it back immediately upon showing them proof of their mistake?

loss of return amount. messed up taxes owed in another state. I have to pay another cpa a real cpa one that is not trained to enter in a number in a computer to ammend my taxes due to me lossing approx 1,000.00 in refund and i was harrassed in public infront of everyone in the office asking my nature of my disability, how i could pay 5,000.00 in medical expenses out of my pocket, saying i was a liar about my house interest amount paid, not having us sign a ky return which i told them the paper had to be signed and they said where?

they taxed my disability income and didn't let my husband claim me as a dependant. so much more had been done and i don't have time to retype all of it i need a phone call back


I purchased the H&R Block's TaxCut program for 2005, 2006 and 2007. Each year everything seemed fine. Then in late 2007, I was audited. As soon as I received the audit notice, I did what the box told me to do. I called the 1-800 number. Much to my surprise, and in complete contrast from what they claim, they offer NO AUDIT SUPPORT! Outraged, I called every H&R Block office in my area trying to find one that was open that time of year. I managed to find one and went into their office with all of my things and asked for help.

The lady behind the counter literally asked me to see the box I purchased. I couldn't believe it. I didn't have it with me, but we pulled up an advertisement on her computer and I showed her the guarantee. Then she started to look at my paperwork and said Well, we can't help you with this, you are being audited. I asked about what happens if I receive fees and she wasn't sure. She had to look on the computer screen for the 1-800 number off the advertisement we pulled up. I told her my plight with the 1-800 number and that is when she told me they are not associated with TaxCut and are not responsible for what they offer or guarantee.

I now have a bill for over $5000 from those three years that I can't even begin to explain, much less comprehend. I caution anyone out there thinking of saving a few dollars in getting your returns filed less expensively and by someone who doesn't see past the fee you are paying them. AVOID H&R BLOCK like the PLAGUE.....it's what they do to you when they screw up!

I am stuck with this $5487.00 tax bill that I can't afford, yet must pay to the IRS. Interest is constantly added on, the bill never seems to go down and since the initial bill, I've gotten add on letters from the IRS for head of house hold credits they are adding on that I never even qualified for in those years, nor applied for to my knowledge.


On April 15, 2008, H & R Block offered Taxcut for $45 (downloadable software for fed and state with eFile extra), or $60 (online for fed and state with eFile included). After taking the whole interview, it asked for the $60 and for the first time informed me that eFile might not be available, but would not tell me before paying whether eFile was available. I had no other option that I could do in time, so I paid.

Then, when I submitted the eFile, I received an email (which I saved) informing me that my fed and state returns had been transmitted. The online product would allow me to print only copies that read Do Not File, and instructed me explicitly NOT to mail my return. But on April 16, 2008, I received notification that my fed return was accepted, but that H & R Block had a problem with and did not forward my state return in the first place. H & R Block's customer service was down, maybe due to volume, so I could not get an explanation why my state return was not forwarded after I was told it already had been. All I could glean was that now I should mail my state return, which I did.

Since H & R Block's decided not to file my state return of their own doing, they obviously could have identified that they were going to do that before charging me for a service they knew they could not provide and making me jump through hoops to be a day late.


Now I have to wait 5-7 weeks for a refund I should have gotten in 8 days, and I am out the $15 I paid for the online option with free filing (but which costs $15 more than the software without free filing).

Obviously I would not have purchased this product over the cheaper other product which would have put me in a better position faster. I also have the stigma of filing after the deadline, and being a prosecutor, I don't like breaking the law like that (even though it was beyond my control and to the state's benefit given that it is a refund). The damage to me alone is not huge, of course, but the extra $15 H & R Block makes on all the people who fall for their bait and switch, and the interest all of us suckers lose on all that refund money that will take longer to get, is a large damage to society that H & R Block should bear. I'm a lawyer, but not a class action lawyer, so whether there's meat for a claim there is not my specialty. There sure is bad will, though, and I'd love to hit H & R Block even if only with enough bad will to cost them what they cost me!


I've done some research into two of the common complaints about TaxCut after I had a problem with my software. First of all, Simple Pay is just that. It's simple. It's not the fastest option or the cheapest option offered by TaxCut. It is the simplest, though, if you do not have money to pay for the processing of the return at the time you file it. The fastest and cheapest way to get your refund is to pay up front for all of the tax prep fees and then efile.

Simple Pay works like this: you file your return, and it goes to the IRS. If they accept it, then the IRS sends the money to H&R Block. When your return is accepted by the IRS, they usually disperse those funds on the following Friday from that date. So, if your return was accepted on a Wednesday, it would be about a week and a half before the IRS sends out that money.

Then, it gets to H&R Block. They take out the amount owed and within 1-3 business days, they will deposit into the account listed on your return. If the account is not valid, then a check is sent to you within approximately 15 days or so to the address listed on your return. If that doesn't work, then special consideration is taken to make sure everyone gets their money, but this only happens on the rarest user errors. In the terms and conditions, which can all be read in full length on www.taxcut.com (and which you had to agree to in order to use Simple Pay), it does state that there is no guarantee of a timeframe for when your money will be deposited, but H&R Block works as quickly as they can to get everyone a refund or else they'd get sued like crazy if they kept everyone's money forever. It's always wise to read through what you're agreeing to first. H&R Block is using a different system this year which is taking longer to deposit the money as opposed to previous years. Hopefully in the future it will be faster.

As far as efiles are concerned, there is no guarantee that you can efile. The IRS and states have restrictions on certain forms and quantities of forms that can be efiled. Also, if your return is rejected, you may be ineligible by the government to efile again. Unfortunately, there's nothing TaxCut can do to change this. The online products do not include efile in the price; it is included for free. That is why the online products are cheaper than the software that includes efiling. If your software says +efile on it, then you paid for it; otherwise, you did not. If you paid for a software includes it and you are unable to efile, then it may be possible to get compensation from TaxCut for that portion (I did) if the IRS has no record of a successful efile from you. If you are able to successfully paper file the return, then H&R Block considers the product to be working and will not issue a refund of the price of the product.

I absolutely understand the concerns of people with TaxCut. However, there is usually a simple reason for these concerns. TaxCut works with the IRS, but the IRS ultimately sets the rules. Also, please be a smart consumer and read through terms and conditions before accepting! Yes, it's long, but unfortunately, you can't change the rules after you've agreed to them. This information is exactly what they gave me, so I'm not giving out anything special. I hope this helps!

I used the online version of the TaxCut Program to complete my taxes. My federal was successful, however my state was rejected. HR Block claims that it's not their fault, but my state's. Since TaxCut claims that they are in sync with the IRS and the states, they should be aware of any errors or problems that may occur. None such luck. When I did the check for errors procedure, the response from the program was that all was well and that they were ready for efile. However, there was a problem that TaxCut has known about and alerted me to the problem. Of all the free and lesser priced programs, I chose this one, not once, but three times. TaxCut, you're OUT! Only bad publicity with me as I spread the news!

Just false claims about what they can do....

I purchased the H & R Block Taxcut Premium + State product. After filing, I discovered a serious error on my State of Iowa return. The amount for Home Mortgage interest and points reported on Federal forms is exactly double what I entered when I went through the interviews. When I log into Taxcut and review what I entered for the different questions, the amount I entered for Mortgage Interest was correct. The Federal form was correct, but the State form is showing that I'm deducting an amount that is exactly double what it should be for Mortgage Interest. I called technical support. They agreed that it was a technical problem with Taxcut, but they told me to call the Tax Advisors. The Tax Advisor all but scoffed at me and told me to call Customer Service; and Customer Service had me write an e-mail and send it to some random e-mail address. The e-mail was not returned after 9 days, so I called Customer Support and demanded a refund of my fees.

So, I've had to call Technical Support, then the Tax Advisors, then Customer Support, had to write an e-mail (which wasn't returned) then call Customer Support again - when the very first person I talked to recognized the problem. Customer Support said I can have a refund of my fees, but I'll believe it when I see it on my credit card statement. That is a lot of passing of the buck, even for an accounting firm. That was also a lot of waiting on hold, a lot of time out of my work-day explaining this mess all over again to each individual department and a lot of frustration. I'd say I've spent five solid hours on this issue. In addition, to contact the tax advisers, you have to log into Taxcut online and send them a message to call you. I did this, and 20 minutes later, I got an e-mail saying that there was no answer at the number I entered. This is not possible. I was sitting at my desk from the time I sent the request for them to call and when I got the message saying they couldn't get a hold of me. The web page where I submitted the request was still up, so I could see that I entered the correct number. The other phone that they could have possibly called was my cell phone, which was also at my desk. To get them to call me again, I had to submit another request...which cost me $19.95. They saw it as a second question, which isn't free. The refund for the $19.95 is pending, but it was even more hassle and evidence that their customer service and online application is broken.

Both returns have already been accepted by both the IRS and the State of Iowa Dept. of Revenue. This means I have to wait until the State of Iowa processes my refund and sends it to me. Then I have to return the check with an amended Tax Return, thus drastically delaying my State refund. I used Taxcut not because I don't know how to do my taxes but because it is more convenient. Because of this error which is definitely some sort of bug in Taxcut Online, this experience has been incredibly ridiculous and time consuming both by the initial error and because I had to make four calls to three different departments, wait on hold and then explain this mess to them. I also had to write an e-mail, which is insulting because it seems like they are hoping most people will just let it go if they have to write a complicated mess in an e-mail in order to get a refund. All of the agents that I spoke to at H & R Block were nice enough but were completely clueless and seemed to want to pass me on to someone else. Furthermore, I now have a wildly overstated tax return accepted by the State of Iowa. This is the kind of thing that gets people audited.


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