Parker Waichman LLP is investigating a potential class action lawsuit on behalf of individuals who used H&R Block to file their tax returns. In March 2013, it was learned that the company had made a mistake that will delay thousands of tax refunds for as long as six weeks. Consumers who used H&R Block are seeking class action lawsuits in order to be fairly compensated for the error. If your or someone you know used H&R Block to file tax returns, you may have valuable legal rights. Call Parker Waichman LLP today for a free, no-obligation evaluation of your case.
H&R Block Error Affects Thousands of Tax Refunds
Kansas City Business Journal reported on March 14, 2013 that H&R Block made an error that will delay thousands of tax refunds for up to six weeks. According to the IRS, a software glitch caused thousands of tax returns to be submitted improperly; apparently, Form 8863 was filed without mandatory fields being checked. Form 8863 deals with education credits. In the past, the IRS interpreted a blank field to mean “no,” but the current form requires the “no” to be physically entered into the form. The IRS has stated that about 600,000 returns were affected by the error; the agency did not disclose how many of those came from H&R Block. H&R Block CEO Bill Cobb has publicly acknowledged the mistake.
The delayed returns have raised concerns among families with prospective college students seeking financial aid. Tax information is needed in order to apply for Free Application for Federal Student Aid (FAFSA) and other forms of government tuition assistance. H&R Block has answered by stating that applicants who waiting for their returns can enter the data manually and update it once the returns are received. However, individuals have pointed out that such an approach is likely to elicit a school audit. Some have also pointed out that many depend on refunds to pay tuition.
H&R Block Tax Return Clients Class Action Lawsuit
On March 19, 2013 a class action lawsuit was filed against H&R Block. The lawsuit claims that over $5 million is at stake because of the error. The suit also alleges that, despite the company’s promise of a 100 percent guarantee, no compensation has been offered to any of the affected clients. H&R Block has been charged with breach of contract and negligence.
Legal Help for H&R Block Customers
If you or someone you know used H&R Block to file tax returns, you may have valuable legal rights. Please fill out our online form or call 1(800)-YOURLAWYER (1-800-968-7529) to speak with one of our experienced class action attorneys today.