Tax Preparation Oversight Leads to Major IRS Penalty
Lance Croft of Vero Beach, Florida, faced a $14,000 IRS deficiency notice after H&R Block overlooked an entire page of his retirement income during tax preparation. Despite the company’s admission of the mistake, it initially rejected his claim under the 100% Accuracy Guarantee.
Understanding the Guarantee
H&R Block’s 100% Accuracy Guarantee pledges reimbursement for preparation errors, including penalties and interest. With a solid paper trail—including saved emails, the immediate forwarding of the IRS notice, and the tax preparer’s written admission of fault—Croft built a strong case for resolution.
Documenting communications in writing proves essential, particularly with agencies like the IRS. Verbal admissions require follow-up confirmation to strengthen claims.
Initial Denial and Company Response
An H&R Block representative stated, “We can confirm that the client has connected with their tax pro who guided them through the process of contacting the IRS. The client’s claim was denied as they failed to provide all necessary documentation at the time of filing.”
This explanation overlooked the fact that the tax advisor missed a full page of documents, with proof already submitted. Further review revealed H&R Block had also missed the preparer’s error admission in the file.
Resolution Achieved
Upon reexamination, the company confirmed resolution. “We can confirm that Lance will receive the maximum refund amount under H&R Block’s Peace of Mind guarantee for additional tax owed,” an H&R Block representative announced.
Key Lessons for Tax Filers
The U.S. tax code’s complexity increases error risks, but penalties remain avoidable. Taxpayers should retain all documents, insist on written error confirmations, and persist beyond initial refusals. As tax season approaches, proactive record-keeping ensures protection against oversights.
