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MarjorieCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 46
Experience:  Public Accounting for Small to Mid-Size firms, Individual and Small Business Tax
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received letter from IRS today Sept. 2, 2011. it indicates

Resolved Question:

received letter from IRS today Sept. 2, 2011.
it indicates the income/ payment info does not match the 2009 form 1040 they have on file and if correct i owe $
i reviewed the return prepared by HRBlock and it has an error.
i purchased the $30 piece of mind policy from HRBlock at time of this return and have receipt with this listed. the error is related to cost basis of stock sold. IRS used Zero cost basis as the return does not report the correct cost basis. The cost basis is clearly shown on documents attached to all the HRBlock return paperwork.
so who is responsible for the accuracy-related penalty and interest due the IRS?
Submitted: 5 years ago.
Category: Tax
Expert:  MarjorieCPA replied 5 years ago.

MarjorieCPA :

Hello, and thanks for using JustAnswer.

MarjorieCPA :

If you purchased the peace of mind policy, then H&R block is responsible up to the dollar limit (currently $5,500) of all additional taxes.

MarjorieCPA :

You only have 60 days to contact H&R block regarding their error, so I would take this letter into your H&R block office as soon as possible. They may want to recalculate the return and respond to the IRS.

MarjorieCPA :

This is from the H&R block website regarding this service?

MarjorieCPA :

How it works

  • After a tax professional completes your tax return, you will have the option to add the Peace of Mind® Extended Service Plan to your return.

  • If you choose the Peace of Mind® Extended Service Plan option, you will be provided with a receipt that will serve as legal documentation that you have purchased the service plan.

  • If you receive an audit notice from the IRS or other taxing authority, you must notify H&R Block within 60 days of receipt of that notification. See Peace of Mind® Claims for more details.

  • H&R Block will pay up to $5,500 in additional taxes assessed by the IRS or any state and local taxing authority resulting from an error by H&R Block. Claims must be filed within 60 days of receiving notice from the IRS other auditing authority. (See Peace of Mind® Terms for more details.)


MarjorieCPA :

The policy is good for 3 years, so you are well within the time frame they indicate the coverage is for. They will also cover the penalties and interest.

MarjorieCPA and other Tax Specialists are ready to help you