HRB Second Look

[Zee]

HRB's ads claim they found errors on 87% of the returns checked that were prepared by someone else, and an average $1300 tax saving for a "second look".

How can that be? I never find nearly that percentage of errors.

[ChEAr$]

Averages

HRB's ads claim they found errors on 87% of the returns checked that were prepared by someone else, and an average $1300 tax saving for a "second look".

How can that be? I never find nearly that percentage of errors.

Well, you know what "average" means as opposed to "median".

the average depth of a river may be only 4 feet, but where it drops off at 12 feet, that's
where people who can't swim drown.

What I'm saying is that I suspect the median error is way less than 1300$!.
One 4000$ error will skew the results .

[Uncle Sam]

HRB's ads claim they found errors on 87% of the returns checked that were prepared by someone else, and an average $1300 tax saving for a "second look".

How can that be? I never find nearly that percentage of errors.

You don't know what HRB considers an "error" - could just be a spelling mistake of name or address - and who knows what they did to find the $ 1300?

Talking about ads - last year Jackson-Hewitt had a real lulu that I found quite offensive.
The ad showed an ambulance driver driving a man to the hospital laying flat in a stretcher, while the EMT attending to the man. Once the driver boasts of JH preparing a 1040 from the last paystub, puts the oxygen mask on himself.

[Zee]

Wouldn't it be nice if there was a requirement to show how the statistics were determined? I guess "truth in advertising" is just an illusion, but people reading these ads don't think a large firm like HRB would "stretch the truth".

[taxea]

HRB Second Look

Truth is, I find errors on nearly 99% of prior returns done by HRB. taxea

[JohnH]

You really do have to be careful with "average", "mean", "median", etc since people use them interchangeably in error. I think that 90% of all statistics are wrong anyhow.

[erchess]

My Understanding

is that the percentage of returns with errors refers to the percentage of returns where the Block employee finds one or more errors and offers to correct them as opposed to saying that there are none worth correcting. My understanding is that the average refund is the mathematical average of those that have refunds big enough that the clients agree to pay for the amendment. Note that the latter calculation excludes returns amended because the taxpayer needs to pay something now in order to avoid paying more at some point in the future.

[Bees Knees]

I think that 90% of all statistics are wrong anyhow.

I agree. It is more like 85%.

[ChEAr$]

Uh....

You really do have to be careful with "average", "mean", "median", etc since people use them interchangeably in error. I think that 90% of all statistics are wrong anyhow.

You got any statistics to back that up, John? (grin

[thomtax]

Statistics true but misleading

You got any statistics to back that up, John? (grin

I think that I may have posted this in the past, but will repeat it. During cold war a two way track meet was held between USSR and USA. Story in USSR is:

Glorious Soviet track team finishes second while Imperialist American team finishes next to last.

LT