Holy Crap..Just got a letter from the IRS!!! UPDATED PG.3

[Brier Rose]

I am just in shock right now. The Irs just sent us a letter saying that we owe over $7,000 because we didn't report all of our income last year. I just pulled out our taxes and H&R Block did not add up all of our W2's right!!!

OMG..how did I not notice this before! We can't even figure out HOW they got the figure that they wrote down as our total taxable income!

It's wrong by about $22,000. I don't know what to do. It's their mistake, but how am I ever going to prove that!

We found one mistake where they didn't even write down part of the contract labor that we claimed! Needless to say I bet they didn't file the 1099 for that either! Wonder if it's too late for that?? Or will we just lose that deduction???

I know we will still owe the taxes, but $1,700 of it is penelty and intrest that THEY are supposed to be responsible for if THEY make a mistake!
But like I said...how am I gonna prove that??

WHY didn't I go back and check it again?? It just never dawned on me they couldn't even add, but how stupid am I to not check it over myself! UGH..I don't believe it!

I think I'm gonna go puke now!

 

[Alicnwondrln]

if hr block does your taxes it says they are responsible for any errors read teh fine print
get a lawyer and call hr and block
its not all yout fault you paid them to do your taxes

 

[The Mystery Machine]

Good grief!!! I hope they pay for their mistakes!!!

 

[Tiggerlover91]

And THAT is why I go to Jackson Hewitt and the Golden Form that says if Jackson Hewitt did, Jackson Hewitt will fix it! I've heard too many horror stories about H&R Block lately.

I hope you get this worked out.....$7000....ugh....

 

[Brier Rose]

Me too!
Needless to say DH will be there when the doors open in the morning!

 

[icebrat001]

Yikes I am so sorry, if that happened to me, I'd be frantic.

 

[4nana]

How disturbing ! I can imagine how shocked and sick you must feel, especially after a year. Shouldn't H&R Blk be responsible? Sure hope you get it worked out.

BTW - Love your siggie pic!

 

[WorldlyWise]

I really don't want to pile on, but there is a reason CPA's have a degree and certification testing and "tax-preparers" have a week of night school.

That said, IRS does frequently waive penalties if you write a detailed letter explaining your good faith attempts to correctly prepare your return. Also, unless the return in question was more than 3 years old, you can still amend to claim the additional labor deduction. As for filing the 1099/1096 on that labor, I doubt Block agreed to do that. On the brighter side, I doubt anyone will ever ask you about it if you just let it go.

Good luck.

 

[Dan Murphy]

Holy crap for sure.

 

[Brier Rose]

And THAT is why I go to Jackson Hewitt and the Golden Form that says if Jackson Hewitt did, Jackson Hewitt will fix it! I've heard too many horror stories about H&R Block lately.

I hope you get this worked out.....$7000....ugh....

Well for years we had a great lady that did our taxes for us..never had a problem. Then last year she quit because she started having some eye problems. We kind of got in a time crunch , and hastily went to H&R Block.

I WILL be looking for a CPA first thing in the morning! We never should have trusted a place like that with the taxes in the first place.

Especially with DH being self-employed, which just makes matter more complicated!

 

[Sylvester McBean]

H&R Block screwed us up a few years ago. they forgot to check a box on a form regarding me as a statuary employee and it ended up with us being audited. H&R told us that because we didn't pay the extra $30.00 for their 'protection program' we were on our own. that was $4,000.00 ago. CPA ever since then.

 

[bsusanmb]

Holy crappin crap! I would probably faint! What a horror. Hope my turbotax works better than H&R! Hope this works out for you.

 

[Alicnwondrln]

well h and r blocks website says they are responsible for any errors
good luck

 

[Brier Rose]

I really don't want to pile on, but there is a reason CPA's have a degree and certification testing and "tax-preparers" have a week of night school.

That said, IRS does frequently waive penalties if you write a detailed letter explaining your good faith attempts to correctly prepare your return. Also, unless the return in question was more than 3 years old, you can still amend to claim the additional labor deduction. As for filing the 1099/1096 on that labor, I doubt Block agreed to do that. On the brighter side, I doubt anyone will ever ask you about it if you just let it go.

Good luck.

I know..I won't make the mistake again.
This was for 2004, so maybe it's not too late then?? I hope so!

Actually..H&R block did do one of the 1099, and I have a copy of it. The guy told us that he would do the rest of them later..he didn't finsh in that one night,and that he would file them electronically???
I had no reason not to believe him, but I realize now that was stupid on my part.
In the past we have always mailed them out ourselves, after they were filled out for us.

When I started going over every detail of the return tonight, we can't find anywhere that contract labor is listed AT ALL!!

Guess I should have asked more questions!

 

[Brier Rose]

well h and r blocks website says they are responsible for any errors
good luck

I know, and we did pay extra for the protection, so I hope they stand by their promise!

I just hope it doesn't come down to a he said/she said thing, and them try to claim it's our fault, cause like I said..how can I prove it was their mistake??

Thanks for the luck..we'll need all the help we can get!

 

[WorldlyWise]

I know..I won't make the mistake again.
This was for 2004, so maybe it's not too late then?? I hope so!

Actually..H&R block did do one of the 1099, and I have a copy of it. The guy told us that he would do the rest of them later..he didn't finsh in that one night,and that he would file them electronically???
I had no reason not to believe him, but I realize now that was stupid on my part.
In the past we have always mailed them out ourselves, after they were filled out for us.

When I started going over every detail of the return tonight, we can't find anywhere that contract labor is listed AT ALL!!

Guess I should have asked more questions!

The Form 1096 which informs IRS of the 1099's you are sending can be electronically filed, but you still have to give a hard copy of the 1099s to the persons you paid.

 

[Brier Rose]

g:
BTW - Love your siggie pic!

Thank-You!

 

[Brier Rose]

The Form 1096 which informs IRS of the 1099's you are sending can be electronically filed, but you still have to give a hard copy of the 1099s to the persons you paid.

You would think I would have known that!
Bet I'll remember it from now on!

 

[jfulcer]

Well for years we had a great lady that did our taxes for us..never had a problem. Then last year she quit because she started having some eye problems. We kind of got in a time crunch , and hastily went to H&R Block.

I WILL be looking for a CPA first thing in the morning! We never should have trusted a place like that with the taxes in the first place.

Especially with DH being self-employed, which just makes matter more complicated!

In Wisconsin (and I assume this might be true other states too), the cost of hiring a CPA is also tax deductible because it is considered a business expense. DW is self employed and we have a CPA do our taxes because every year we get to see that little credit show up. No cost to us at all!

 

[luvthatduke]

You have my sympathy & hope it gets straightened out quickly!

FYI: News headlines this past week have trumpeted the
fact that H & R Block messed up their own taxes!!