Sarah Mirando  |  April 5, 2013

Category: Legal News

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H&R Block Hit with Class Action Over Delayed Tax Refunds

By Mike Holter

 

H&R BlockH&R Block Inc. has been hit with a class action lawsuit over the announcement last month that the company and other tax-preparation businesses botched the filing of thousands of tax returns, leading to a six-week delay in refund payments.


“This was our mistake – and I sincerely apologize,” H&R Block CEO Bill Cobb said in a statement acknowledging that its software failed to fill out a mandatory field on From 8863, which is used to claim educational credits.

IRS spokeswoman Michelle Eldridge announced the software glitch on March 13, saying it was caused by a change in the way the IRS processes some of the “Yes” or “No” questions on the form. Eldridge said the snafu affected nearly 600,000 taxpayers who filed their returns before February 22, but did not indicate how many of those were filed by H&R Block.

Some companies, including Intuit Inc. and Jackson Hewitt Tax Service Inc., said their programs were not affected by the glitch.

Michigan plaintiffs Arthur Green and Amy Hamilton allege in the H&R Block class action lawsuit, filed March 19 in the Eastern District of Michigan, that H&R Block advertises a 100-percent accuracy guarantee for all of its products and that the company should be liable for failing to fill out the tax forms correctly. They also say that despite the apology, H&R Block hasn’t offered compensation to them or members of the proposed class.

H&R Block said it is working with the IRS to clear these errors and process the returns as soon as possible.

“I know an apology won’t put your tax refund in your hands right away, and many of you still have questions. But right now, our singular focus is to get you that refund, and we have all hands on deck to help make this right,” Cobb stated.

The H&R Block Class Action Lawsuit case is Green, et al. v. H&R Block Inc., et al., Case No. 13-cv-11206, Michigan Eastern District Court.


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Updated April 5th, 2013

 

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5 thoughts onH&R Block Hit with Class Action Over Delayed Tax Refunds

  1. Angelica Romero says:

    Add me

  2. Vidal says:

    Where is the link to became menber of this lawsuit?

  3. Vidal says:

    Where is the link to became menber of this lawsuit?

  4. hope gamble says:

    where is the link to become a member of this lawsuit?

  5. kb says:

    Not only was I unable to pay some bills ontime, I had hrbank calling me at work harrassing me for my Rapid Anticipation Loan payment that was due on 2/15/2013. Telling me that “they didn’t care whoes fault it was, I owe the payment”, and that interest was being charged daily onto my account. Very rude person.

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