HRB Guarantee

[Burke]

HRB apparently has some type of program called Peace of Mind Extended Protection Plan in which they will pay up to $5,000 for addl taxes incurred due to their error (subject to its guarantee terms in the document.) My question is: What is the addl fee for this? Is it a flat fee or variable based on factors? Are varying amts of coverage available? In the 2006 return, the document is called the Enhanced Standard Guarantee Plan. the amt was $2,500 and you had to be a continuing, return client to HRB (I assume the next year) or it was void. Is this a different plan, or no longer used? Do any of you offer such plans?

I am reviewing the last 3 years for a client and cannot determine how they calculated the fees. Went from $214 in 2005, to $254 in 2006, to $322 in 2007, to $312 (note it went down!) in 2008. Nothing changed from year to year on the return, except maybe this guarantee plan.

[Koss]

Peace of Mind

I no longer work for HRB. But I worked for HRB for many years, and I am familiar with this product.

The cost of Peace of Mind does not vary with the amount of the tax liability, or what is in the tax return, e.g., which schedules, etc. The price has changed a little bit over the years. At one time I think it was $25, and then it increased to $29 in a later year. Or something like that. But the price is the same for any client.

Whatever you're seeing from 2006 is no longer offered.

Although I just said the price is the same for any client, the one exception is that historically, Peace of Mind has been included, at no extra cost, for returns prepared at an HRB "Premium" Tax Office. These are HRB offices that are equipped to do returns for business entities, as well as more complex individual returns.

HRB, and any other tax service, must break down their fees, disclosing to the client what portion is the professional service fee for preparing the return, what portion is Peace of Mind, and what portion, if any, is related to bank products such as a RAL, or an agreement to withhold the fees from the refund. Historically, HRB has done a good job of disclosing the breakdown. But your client may have misplaced one or two pages somewhere. You might not be seeing the page that itemizes what he was billed for.

With that being said, HRB has a history of very inconsistent, unpredictable, and confusing pricing with respect to the cost of tax return preparation. Setting aside Peace of Mind and bank products, HRB charges different fees for the same return in different markets. The fees are higher at a "premium" office. And historically, HRB has even been known to change the fees within the tax season. In other words, for the exact same return, the fee charged in late January might be different from the fee charged in early April...

They said they were going to stop doing that this year, and keep the fees consistent throughout the season.

Their fees have fluctuated significantly over the last several years, and franchisees can set their own fees. One year a Schedule C with depreciation might be $88.00, and the next year it might be $135.00.

Hope this helps.

BMK

[Bees Knees]

With that being said, HRB has a history of very inconsistent, unpredictable, and confusing pricing with respect to the cost of tax return preparation. Setting aside Peace of Mind and bank products, HRB charges different fees for the same return in different markets. The fees are higher at a "premium" office. And historically, HRB has even been known to change the fees within the tax season. In other words, for the exact same return, the fee charged in late January might be different from the fee charged in early April...

How is that any different than any other tax preparer? Name one person in the history of tax preparation who ever was consistent with their pricing.

My fees go anywhere from $100 to $300 for the same return, depending on who it is, when I first started doing their return, and what time during tax season I prepare their return.

I always wind up undercharging clients that want a price quote before I begin. I'll bet you do too.

[taxea]

I do recall some action takenn against them on POM. I can't remember too much about it but it was not a client that came down on them. Perhaps a google search for legal actions against HRB might bring it up.

[BP.]

How is that any different than any other tax preparer? Name one person in the history of tax preparation who ever was consistent with their pricing.

My fees go anywhere from $100 to $300 for the same return, depending on who it is, when I first started doing their return, and what time during tax season I prepare their return.

I always wind up undercharging clients that want a price quote before I begin. I'll bet you do too.

So glad to read your post on this subject. It does reflect reality. I've tried to bring more consistency into the process, with so much referral-based biz, because some clients will compare the price I charge and ask why so-and so paid me $25 less or whatever. I can always explain it though.

[Burke]

There were no price breakdowns in any of the returns the client gave me, although there were plenty of other documents, the return, all the W-2's, etc. I remember seeing these before, but I do not know if they still provide them. Thank you for the insight, that may help, and I will do a little more digging. I just read somewhere that they charge a fee for direct deposit? That doesn't sound right, although the HRB fees in this case were deducted from the clients' refund. Would that provoke some charge? I, too, worked for HRB back in the 70's for 5 years. The pricing structure was probably fair, but way too complicated for any two people to accurately use it and come up with the same $$$ for the same return. I guess, to answer my second question, no one around this board offers guarantee plans?

[WhiteOleander]

I can go to the store one day and buy milk. Next day go back and buy more milk and they've raised the price. Who says tax preparers can't adjust their fees?

[gkaiseril]

There were no price breakdowns in any of the returns the client gave me, although there were plenty of other documents, the return, all the W-2's, etc. I remember seeing these before, but I do not know if they still provide them. Thank you for the insight, that may help, and I will do a little more digging. I just read somewhere that they charge a fee for direct deposit? That doesn't sound right, although the HRB fees in this case were deducted from the clients' refund. Would that provoke some charge? I, too, worked for HRB back in the 70's for 5 years. The pricing structure was probably fair, but way too complicated for any two people to accurately use it and come up with the same $$$ for the same return. I guess, to answer my second question, no one around this board offers guarantee plans?

H&R Block offices can print out a detailed receipt form their software on request. But in general they do not because they do not want a detailed price list being printed for non-clients.

[ChEAr$]

. I just read somewhere that they charge a fee for direct deposit? That doesn't sound right, although the HRB fees in this case were deducted from the clients' refund. Would that provoke some charge? I, too, worked

fee for direct deposit? I think IRS/U S Treasury forbids that.

[AJsTax]

I just read somewhere that they charge a fee for direct deposit? That doesn't sound right, although the HRB fees in this case were deducted from the clients' refund. Would that provoke some charge?

It is not allowed by IRS rule to charge for direct deposit. Is in Cir. 230. But of course they charge for bank products and if they do a RAC to have the Block fee withheld from the refund there is a small fee, but not to do the direct deposit. We can all access that service and offer it if we want to.
To answer the other question, I do not know of any other than the big store front firms that offer such an insurance plan. Most of us will cover penalties and interest on our mistake, but not additional taxes.
Our fees vary from client to client and by the time of year and a lot PIA factors. I do not like to be tied into a rigid charge by the form method.

Just my thoughts. To each their own!!

[Burke]

Most of us will cover penalties and interest on our mistake, but not additional taxes.
Our fees vary from client to client and by the time of year and a lot PIA factors. I do not like to be tied into a rigid charge by the form method.

I agree, and do the same.

[Snaggletooth]

April Fees

If anyone waits until April to make an appointment, there is a healthy surcharge, and if they wait too late I can't help them.

I think most of us that are busy in April charge more for an April return than a February return.

[powerage]

My boss adjust the fees everyday, based on all kinds of factors. Whatever. People might get mad...fine, I have no control over it.

Charging more than $50 for a 1040-EZ is ridiculous, and I don't care if they have 10 W-2's. I'm talking tax prep fees only. The banks charge whatever they want for their product, which should only be 2 fees, and not DD.

[DTS]

...Charging more than $50 for a 1040-EZ is ridiculous, and I don't care if they have 10 W-2's...

I guarantee you that if I am entering 10 W-2s, I'll be charging way more than your imposed $50 limit.

[origun]

Block's "Peace of Mind"

For tax year 2009 in my area, the cost of the Extended Service Plan ("Peace of Mind") is $30. This includes payment of up to $5000 in additional taxes if they are due to preparer's error. It also includes providing of an EA for free in case of an audit. In my experience, less than 25% of clients purchase it but I'm sure it varies from office to office. I believe that premium offices provide the additional plan at no charge as preparation charges are higher at premium offices. At least that used to be the case.