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by Editors of Consumer Reports
In this thorough article, Consumer Reports weighs the pros and cons of various kinds of tax preparation. When it comes to national chains like H&R Block and Jackson Hewitt, the writer warns that many… seasonal tax preparers come equipped with only high school degrees, and cautions against refund anticipation loans, which come with very high interest rates. Fees may also be higher than expected, and you usually can't expect any help if you're audited.
by Editors of Consumer Reports
by Jennifer Pellet
New York Magazine asks a young, married professional couple to prepare their taxes three different ways: using TurboTax, an H&R Block franchise location and a high-priced accountant. H&R Block costs $395… for two and a half hours and a $2,442 refund. TurboTax costs $114 and nets a refund of about the same amount. And the high-priced firm winds up costing $1,000, but snags a refund of $3,620. The main complaints about H&R Block: lack of privacy and a "rushed" feeling.
by Janet Paskin
This excellent article looks at all sorts of tax-preparation services, but Janet Paskin can't resist taking swipes at H&R Block and Jackson Hewitt, whose preparers, she says, are often underqualified and… make frequent errors. She also criticizes these firms' non-tax products (like H&R Block's "Express IRA") and unnecessary audit insurance (the money you pay for this extra protection won't really add much to the free guarantee).
by Andrea Coombes
This article reports the results of a study by the Treasury Inspector General for Tax Administration, who sent 28 people to file tax returns at 12 commercial chains and 16 independent contractors. Not only… did fees vary wildly, but 17 of the 28 returns were added up improperly (albeit usually to the taxpayers' advantage). Commenting on the results, spokespeople for H&R Block and Jackson Hewitt say they agree with the report's recommendation of a uniform licensing procedure for tax preparers (sources claim these chains use many unlicensed preparers during peak season).
by Editors of Consumer Action
This Consumer Action article conveys the essentials of a joint report by the National Consumer Law Center and the Consumer Federation of America study on tax refund loans of the kind offered by Jackson… Hewitt and H&R Block. The loans are described as having exorbitant interest rates and preying on lower-income tax filers. On the positive side, the report notes, H&R Block has recently lowered its fees, though these loans can still be risky if refunds are delayed or challenged.
by Editors of Consumer Affairs
As a result of pressure from the California attorney general, Consumer Affairs reports, H&R Block has agreed to stop representing its high-fee (and high-interest) refund anticipation loans as genuine tax… refunds in that state, though it can go on marketing the product. The California attorney general settled a similar lawsuit against H&R Block's competitor, Jackson Hewitt, and concluded a trial against Liberty Tax Service.
by William Perez
William Perez, About.com's guide to tax planning, recommends against buying H&R Block's "Peace of Mind" or Jackson Hewitt's "Gold" audit guarantees, saying they're only appropriate for very complicated… returns. Says Perez, "In reality, these products really protect the company more than they protect you." This is because, by collecting the money you pay for the guarantee, the company has a pool of funds to pay out claims arising from tax preparation mistakes. Because H&R Block and Jackson Hewitt both hire many inexperienced tax preparers, says Perez, "you can be sure they want to minimize the damage caused by simple tax prep errors." (Note: ConsumerSearch is owned by About.com, but the two don't share an editorial affiliation.)
by Meg Marco
In this amusing post, Meg Marco bemoans the latest innovation in refund anticipation loans, a prepaid debit card (loaded with hidden fees) that filers with H&R Block and Jackson Hewitt can use to spend… their refunds right away. She notes that H&R Block charges users a $1 fee just to check the balance on their debit cards. This post is also interesting for the appended (mostly negative) comments from consumers and tax experts.
by Melissa Hoffmann Lajara
Following the example of California, the New York State Division of Human Rights has launched a probe of the top three tax services -- H&R Block, Jackson Hewitt and Liberty Tax Service -- and their refund… anticipation loans. According to DHR Commissioner Kumiki Gibson, "They usually charge exorbitant fees and interest rates, and borrowers can end up with very little or nothing after the fees and interest are paid." The Division of Human Rights wants to see if the companies are disproportionately targeting their refund anticipation loans to minorities and military families, in violation of civil rights laws.
by Editors of GPAUC
At the start of the 2007 tax season, GPUAC sent mystery shoppers to both H&R Block and Jackson Hewitt to ask for refund anticipation loans. According to this press release, "as part of the loan process, H&R… Block required a tester to apply for a dummy bank account that would allow for her IRS refund check to go directly to H&R Block. At Jackson Hewitt, the tester was told she would have to return, with her W-2, to take out a refund anticipation loan or to open a dummy bank account that would allow for her IRS refund check to go directly to Jackson Hewitt."
by Bernice Yeung
Yeung goes into great depth about the refund anticipation loans offered by H&R Block and Jackson Hewitt, showing how hidden fees (and high interest rates) can cost hundreds of dollars out of a $2,000… refund. Says an expert interviewed here, "Refund anticipation loans are directed toward the poorest of the poor, so what ends up happening is that people who can least afford to give up, say, $114 for a loan on their own money for 10 days are targeted for these products."
by Contributors to ConsumerAffairs.com
by Contributors to ConsumerAffairs.com
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