Trusting the Tax Man

5 comments

The core competency at H&R Block has to be questioned after they screwed up their own taxes:

Shares of H&R Block fell on Friday after the tax preparation and software provider admitted it had miscalculated its own state income taxes, understating its liabilities by $32 million as of April 30, 2005.

Always a bad sign when you sell a service that you do incorrectly for yourself in a big way. Too funny not to post.

via Digg

Comments

business 2.0 ranked it as

business 2.0 ranked it as the 69th dumbest business move of 2005. there are some really funny ones in that list.

I'll never deal with them again

3 years ago my wife and I used H and R Block. They miscalculated our taxes and told us we had to pay $700 more in taxes than we had to pay. About 3-4 weeks later we got that $700 back from the IRS.

We pay a little more for our personal accountant to prepare our taxes--but it's worth it.

Tax Software

I've had a lot of success using tax software and feel a little more in control. I trust an accountant, but I often come up with more deductions on my own when I really study things. It seems most accountant just want to get it in and out as quick as possible.

Evil CPAs

My last accountant billed me over $2000 for setting up an LLC. The problem is he never did it. I refused to pay, he sued me. He continued to send me monthly invoices. It didn't matter that I fired him and even sent it in writing... he kept on sending those invoices for 'Professional Services'. I opted for legally binding arbitration. The Evil CPA arrives with stacks of paperwork and claims to have records of all the work I instructed him to do including a copy of the LLC that he sent to me via Certified Mail. This was still sealed in the envelope. He yapped forever and flashed the envelope and when he was finally was forced to open this Certified Mail that contained my LLC - it turned out to be a returned INVOICE that I stopped accepting.

The panel of three judges were frustrated, but he swore under oath that he did the work. It turns out that CPAs are given more trust by the courts. The judges just couldn't accept that he was so brazenly lying about everything - so the awarded him 1/2 of what he was asking. Which, by now, after months of sending fake invoices, had ballooned to over $4,000.

I had to write a check for $2,000 (plus attorney fees). Exactly what this crook wanted. Looking back, I see he calculated every step of the way.

That said, I'm now with thePhenomenal - I do it myself with software.

...I never did get that LLC

evil CPAs

good story.. I can relate one just like it that went to small claims. Brazen all the way with stacks of papers and high-holy claims but the arbiter waited patiently and asked to see each so-called smoking gun document. Nothing there.

I would be way too embarassed to pull such a stunt, but the CPA went whole hog and when called on it, simply packed and left. Case dismissed.

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