Is H&R Block responsible if they filed my taxes without my W2 and now I owe the IRS money??

Question

I just wanted to know if they are responsible so I can tell them something because I have to figure this out before July. Thanks everyone!

Answer 1

If your preparer failed to include income documents that you presented at the time your tax return was done, you should contact the preparer.  The preparer should amend your return for free, and most will pay penalties and interest.  The preparer would not pay tax that you owe, unless you purchased a refund guarantee.  

You should contact your preparer, bringing your tax folder that they gave you plus the IRS correspondence.

If you did not show the W2 to the preparer, the preparer has no responsibility.

Answer 2

YOU are responsible for any taxes owed, whether or not a mistake was made.  If they made the mistake, they should cover any penalty and refiling cost.s  If you failed to provide them with the W-2 at the time, the fault is totally yours.

Answer 3

Not unless you can prove you gave it to them when you gave them your paperwork.  And in any case you'd be responsible for the extra tax, but if it was their mistake they'd pay the interest and penalties.

You should have reviewed your return when it was complete and before it was sent, so as far as the IRS is concerned, you are the one responsible, not Block.

Answer 4

I see many possibilities.  (I take it this is your 2006 tax return and you just got a CP2000.)

1.  You forgot to take in the W-2.  This would be your fault, not theirs and HRB won't care.

2.  You took in the W-2, but they forgot to include the money on the tax return. (In this case the W-2 will be in their records.) You failed to proofread the return and didn't catch it until later.  If you can show that the W-2 was there and they forgot it, you will pay the difference in tax, they will pay the difference in penalty and interest.    

3.  You took in your last paycheck stub and allowed them to submit the tax return based on the paycheck rather than your actual W-2.  For higher income earners this generally results in overpayment of taxes.  For lower income earners this can result in taxes owed if it causes them to get too much EIC.

If you got a CP2000, there is no need for an amended return in this case.  The correct numbers are on the form.

Answer 5

If the w-2 was in the documents that you presented to them at the time they prepared the return they should amend the return free of charge.  Most also pay the penalty and interest that you may incur.  If the W-2 was not present and both of you knew it they also could have filed a substitute W-2 form which you would have had to agree to.  In that case the problem is all on you.

Answer 6

Did your tax preparer not include your W-2 income on your return, or did they forget to attach the W-2 form to a return that was filed by mail?  If the later is true, chances are the IRS is not giving you credit for the income tax you had withheld during the year.  They will not give you credit for the withholding until you either submit your W-2 document or it eventually shows up in their records via the SSA records which typically reach IRS systems around July or August.  At any rate if this is the case an ammended return is not necessary.  If W-2 income was not included in your return however, you need to file an ammended return ASAP.  The tax preparer cannot be held liable for any addional liability.  The resulting tax debt is yours period.  You sign your tax returns under penalty of perjury stating that you have reviewed them and the information presented is both complete and accurate.  People don't just "miss" or forget their W-2 income if is substancial.  The tax preparer may be held liable for some of the penalties and interest however if they failed to provide you with a copy of your return as required or failed to exercise due dillagence or include inocme you presented to them.  Hope that helps.  If you need additional assistance or help with an amended return, please feel free to visit my website at eTaxrelief.com for additional information.

Christopher R. Jacquez

President, eTaxrelief.com