Best Reviewed
Tax Preparation Services
- Best storefront tax-preparation service H&R Block *Est. $190
- Free, in-person tax help IRS Volunteer Income Tax Assistance *Est. $0
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Best storefront tax-preparation service
- Almost 12,000 locations
- Good compromise between DIY and an accountant
- Experience varies among preparers
- Overkill for those with simple returns
- Complaints of poor customer service
Financial experts and customers say the H&R Block tax preparation chain is the best choice in storefront tax-preparation services, citing this chain's reasonable fees (for simple returns) and numerous convenient storefronts. However, most financial experts recommend doing it yourself instead of having your return prepared by a storefront chain. That's because most people have simple returns. Also, we found numerous warnings about the varying qualifications of H&R Block's tax preparers. H&R Block no longer offers refund anticipations loans (RALs), since its lender was ordered to stop funding them. The chain does offer refund anticipation checks, which carry high fees, and extended audit guarantees. If you need help with your tax return but can't afford to pay for it, you may qualify for free in-person tax help through the IRS Volunteer Income Tax Assistance (VITA) program, which serves those with low to moderate incomes. For example, if your household income was less than $49,000 in 2010, you generally qualify.
We found the best feedback about the H&R Block tax-preparation chain (as well as tax-preparation services in general) at ConsumerReports.org and SmartMoney magazine. Both discuss the services offered by H&R Block and its next-biggest competitor, Jackson Hewitt. We also consulted comments about H&R Block posted by consumers at ConsumerAffairs.com and Epinions.com.
Our Sources
1. ConsumerReports.orgDetails/Subscribe
This article reports on the results of mystery shoppers' visits to storefront tax services in Philadelphia and Durham, N.C. The article addresses issues found at some storefront chains, including H&R Block, and steps to take to have the best results when using tax-preparation services.
Review: Is that Tax Preparer Really Qualified?, Editors of ConsumerReports.org, March 2009
2. SmartMoney.comDetails/Subscribe
Janet Paskin looks at the pitfalls of using tax-preparation services, including large nationwide chains such as H&R Block. She takes issue with the quality of some of the tax preparation and the non-tax-prep products some of these services offer. H&R Block's Express IRA is singled out for criticism, with Paskin noting that a lawsuit filed by the New York attorney general claims that most people that opened them paid more in fees than they earned in interest. Audit guarantee insurance also comes in for scorn.
Review: 10 Things Tax Preparers Won't Tell You, Janet Paskin, May 2009
3. About.com
William Perez, the tax planning guide for About.com, discusses the positives and negatives of H&R Block as well as other tax-preparation services compared to using a private accountant. Chain preparers like H&R Block are called more convenient, but a private accountant might spend more time with you and have more expertise. Neither is more or less economical. (Note: ConsumerSearch is owned by About.com, but the two don't share an editorial affiliation.)
Review: Should I Use H&R Block?, William Perez
We found lots of complaints here about H&R Block's excessive fees and poor customer service. Some customers also complain about errors in their tax returns or employees who didn't seem to know what they were doing. However, ConsumerAffairs.com is a site that seeks negative comments, and no other tax-preparation service fares any better.
Review: H&R Block, Contributors to ConsumerAffairs.com
5. Epinions.com
More than 200 people post ratings and reviews of H&R Block at Epinions.com; the overall rating is 2.5 out of 5 stars. Reviews date back to 2000, but many are more recent. Over the past couple of years, customers have complained about the company's high fees, incompetent tax preparers, and poor customer service. A few customers were happy with the service, though. Satisfaction seems to depend greatly on the reviewer's confidence in the individual preparer.
Review: H&R Block, Contributors to Epinions.com
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