H&R Block Class Action Lawsuits Filed Over Tax Errors

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Irvin Jackson

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H&R Block faces at least two class action lawsuits after botching the filing of hundreds of thousands of tax returns earlier this year and allegedly failing to honor a 100 percent guarantee for their services. 

One H&R Block class action lawsuit was filed in U.S. District Court for the Eastern District of Michigan on March 19, and a second complaint was filed on March 29, in the U.S. District Court for the Northern District of Ohio.

According to the lawsuits, the tax preparer failed to fill out a mandatory field on Form 8863, resulting in tax return delays for an estimated 600,000 people. As a result of the error, the complaints allege that customers could experience a delay in receiving their tax refunds by as much as six weeks.

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As part of the tax preparation service, H&R Block consumers pay, in part, for a 100% accuracy guarantee, and the lawsuits allege that the company has failed to compensate those affected by the error.

H&R Block officials have stated publicly that the delays were caused by a filing error on their behalf and CEO Bill Cobb has publicly apologized for the error.

The field left blank dealt with claiming tax credits for expenses paid to postsecondary education institutions and was a mandatory field. The error occurred because the IRS had a rule change that previously meant leaving the field blank constituted a “no” on whether the person had credits to declare. However, this year the IRS required the field be filled out.

The lawsuit claims the company should have accounted for the change, and that the error and delays constitute a breach of contract. According to the lawsuit, H&R Block promises a full refund of the purchase price if customers are dissatisfied within 60 days of filing. However, the class action claims that H&R Block has failed to honor that guarantee.

Written by: Irvin Jackson

Senior Legal Journalist & Contributing Editor

Irvin Jackson is a senior investigative reporter at AboutLawsuits.com with more than 30 years of experience covering mass tort litigation, environmental policy, and consumer safety. He previously served as Associate Editor at Inside the EPA and contributes original reporting on product liability lawsuits, regulatory failures, and nationwide litigation trends.

Tags: Class Action Lawsuit, Financial Fraud, Michigan, Ohio
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20 Comments

Kimyatta
I just recently did my taxes, and when I sat down I had asked her about money that was supposed to be owed to me. I had got a letter in the mail months ago. They said I was owed 1,900. Whe the lady put my name in the computer she said something was there saying that I was owed something and that she’s going to look more when the taxes are ready. Then when we were done she said do you want the peace of mind and I said are you going to check what the 1,900 was about. The she said I had to go to the IRS, not her. So I said then why do you offer the peace of mind if I can’t get peace about my taxes. I’m done with H&R block after this episode. All they do is charge you alot and give you know answers.
Amy
After 24 days of email and voice mail messaging, someone from H & R Block finally called me. (In a nutshell) told me that since I “make decent money, that I should go ahead and pay the state the amount on the notice that I rec’d from the Dept of Taxation regarding my 2020 state income tax return” to “put this matter to bed”. Ummm, I did not make the mistake. I answered accurately and completely, including/regarding unemployment compensation received in 2020. The H & R Block software placed that data incorrectly on a code 37. This is far from over, in mere principle alone.
cori
Completely confused why I paid 350 & for no help at all when I suppo8ti get a refund??? I paid a professional!!!
Michael
100% Guarantee I don’t think so .if you want to include getting audited including penalties . With no help at all
Maile
Long story short I found an error where H&R Block tax pro omitted the majority of our income by leaving out our K-1 I ironically asked for help entering. They made an amendment saying I now owe $7,000 which is insane since our annual income was only $33,000. Things have now become sketchy and 100% feel they’re trying to get me off their backs. For example, I asked twice if I could file a claim to see if they’ll make an exception since I didn’t get the peace of mind. Even the regional manager stated this was an extreme mistake. They then immediately respond say they already file a claim and it got denied. Well that was a fast turn around? I asked for a copy of my denied claim and still waiting to see it. In the meantime I called and they said my case is closed, how is that possible?
thomas
Will not do buisness with price gouge H&R block again. last year 200 bucks. this year 4 hundred bucks, will not use them again.
Alex
In February 2022 I filed amended tax return for the year 2020 h&R block charged me $350 for that approximately they said it would take 5 months into the IRS accepted my taxes electronically also in 2022 I filed my taxes for 2021 and I had I lost $1,400 due to a filing error I took that that HR block and they said I had to call IRS myself and talk to him about it I’ve never been able to get a hold of the IRS and h&R block refused to fix it 5 months later I called h&R block again asked him about my amended tax return come to find out that the IRS did not accept the electronically and it’s been sitting in their office for 5 months they never contacted me or nothing that I had to mail it out when I asked to speak to a manager or make a complaint they told me that to go f*** off and I needed to get a personality we got an argument they told me never to come back to the office again I called h&R block corporate to file a complaint they said that somebody would be in contact with me within five business days no one ever contacted me so I called them back and my case have been closed a week later I get a letter from h&R block banned me from h&R block property for life Bond review of my amended tax return it stayed in there that my daughter was married to me while I was incarcerated and that’s why we were filing animated tax return I am not married to my daughter she is 12 years old I’m married to my wife h&R block would not fix it or give me my money back to fix it so I had to borrow money to go to Jackson Hewitt to get it fixed
Tori
I’ve been waiting since Feb.12 for my refund. I’m just now finding out that it was H&R Blocks software that made a mistake! After asking today for some kind of compensation, or an advance, I was told by the idiot on the other line “no, we’re not a bank, we don’t do anything like that”. Just received an envelope in the mail two days ago offering a thousand $ line of credit from H&R Block. Not a bank, huh? Still haven’t recieved a thing from those idiots!
Bobby
An H & R Block office manager ensured us as we paid for this years filing and peace of mind, that any errors would be covered by the peace of mind contract. After using them for 12 years straight I have learned the hard way that this is not true. $2,644.85 was supposed to be paid for their error in accounting a benefit related to college credit in the tax return for a previous years filing. When I noticed it I asked if that years peace of mind would cover the expense and he assured me it would. April 2019 a letter from the H & R Block office says otherwise. Bait and switch, buyer beware. Do not trust this company with their “Peace of mind” pitch. It is pure garbage.
gabriela
hello I live here in naples fla I would like to know if this law suite against hr block applies here in fla also because last year I did my taxes with them and had not been charged anthinng and this year I was charged104 dollars and another 35 dollar to get it amended
ROXANE
Just in case anyone needs to fill out a 8863 Form, I found a blank form in this site PDFfiller. This site also has several related forms that you might find useful. http://pdf.ac/51GRmU
Elizabeth
I was affected by this and wondering who to contact or how to be added to the class action
Annoyed
I have been waiting months for mine as well. I called thr IRS and wsd told, on 3 separate occasions, any day now. I was assured on each call, it was not you or your tax preparers error and I would receive my refund any day now. The calls I made, began in March and I have yet to receive my refund. The very last time I called I was told that it would be 4-6 weeks from March 12th. 6 weeks will be April 22nd so I should have it that date. I strongly doubt that I will. Can a lawsuit be filed against the IRS too?! I got hr from their website which caused this mess!! Very annoyed!!!!!
biggdl
We too have not recieved our refund and were shocked at the H$RBlock reps response to all the delay. After asking for a refund of the fees we paid ($500 apprx.), she was rude, stating “…it wasn’t their fault…” What?!! When we pointed out that we’ve been using them for the past 10yrs and are not going back…”that’s your choice…” Is there a lawyer/law firm taking any class action against these idiots? They didn’t earn their fees and I want my money back. I’m pissed now. Please, if there is some recourse, or action, or law suit to get my money back, please post what can be done. TThis is so not right. If I don’t get a full refund of the fees paid to H&RBlock, I plan to use every social media to spread the word about how we’ve been treated. If I were to treat a customer with this disregard, I’d be out of business. They give “100% guarantee”. Show me the money back. Obviously I’m not alone, and If by chance there is a lawsuit against these idiots, count me in. I can be reached at: abovegdl@aol.com
Diane
I had an appt to have taxes filed with H&R Block on 2/5/13 and had to reschedule due to lack of employees on their part. It took a total of 6 plus hours to get my taxes completed by 2/8/13. Because of the form 8863, my refund was delayed an additional 6weeks however, H&R block charged me almost $400 for a RAC, Refund Anticipation Check with I didnt receive in a timely manner. Also due to an error on one of the employees part, I have yet to receive my state taxes because although I have worked for the same company for 12years but they some how managed to enter the employers FEIN wrong so I am being penalized by my state for THEIR error!!!!
Laurie
I have filed my federal tax on Jan 31st and still have not received my refund and when i call H & R Block i’m not given a real explanation as of when or why its taking so long. I believe i should be given ack the fees they charged to do my taxes…….Ridiclious!!!!!!
crystal
I filed with HRBlock on Jan 23, i too had filed with 8863 and paid over $250 for a refund within 21 days. As of today, still no refund or any indication when I will get it. Ive called HRBlock several times and they always say “hopefully it will come by next week”. Its nearing 80 days and still no refund from IRS or from HRBlock (filing fees). According to IRS, 04-09-2013, it could be April 23 before they even get it procssed. I have been customer of HRBlock for years but after this, never again
Terry
I filed with H&R block on 2-13-13 and still have been told by irs yesterday on phone and today in person that the return has not been processed yet because of the H&R block error and I want my money back. My daughters cannot use irs retrieval tool for fafsa.gov for college and were told by irs that my return will not be processed even if I pay in full until end of april and if I choose to make payments the irs bill won’t start going out until may 16th. What a mess! I called my federal congressman al franken’s office and they are looking into it.
Angela
I filed on Jan 26th with H&R Block. My taxes included the 8863 form so I was informed that my taxes would not be processed until February 14th. After not receiving my refund I called H&R Block at the end of February, and they told me that I will receive my tax refund by March 8th which was a lie. Looking back, I now know H&R Block had no way of knowing the refund date. When I did not receive the refund, I then contacted the IRS. The IRS told me that my file was being sent to another department that would look over the problem. Well today is April 4th, and I still have not received my refund or even a payment date on the “Where’s my Refund” website. I plan on calling the IRS back to see if I can find out anything else….more time wasted. This has been very disappointing and stressful.
Debra
I filed my taxes with H&R block on the 24th of January. I have yet to recieve my refund nor have I gotten a refund for the $200 plus dollars I paid H&R block to prepare my taxes to get their guaranteed satisfaction. I have called the IRS several times and still nothing. It should not cost me to file early and then have to wait because of their mistake for over 75 days. This is ridiculous and unacceptable.

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