H&R Block's error caused utility shut off?

[pam]

Utah couple has electricity, gas turned off due to late tax refund | ksl.com

Okay maybe I'm missing something here, but how is this H&R Block's fault? They went on a vacation for pete's sake.

[selek]

Sounds like the glitch in H&R's software resulted in their refund being delayed.

Because the refund was not deposited, the automatic payments defaulted, resulting in the electronic version of bounced checks (and the associated fees and penalties) which drained their accounts further.

It's H&R Block's fault because their software error caused the delay, but the couple's fault for spending money they were expecting, intead of having in-hand.

[applepansy]

H&R Block has the federal return sent to them instead of directly depositing in your account. I've never understood why they do that.

[Just_A_Guy]

I think that a lot of tax preparers, rather than demanding up-front payment for their services, simply have their fee come out of the client's tax refund.

I have zero sympathy for this couple. If one missed payment got their utilities shut off then they were probably already several months behind. Who goes on vacation when they aren't current on their bills, and with money they don't even have yet? With all the hemming and hawing over the federal government's current fiscal state, I would be mildly surprised if I got my federal refund before June.

[pam]

I'm with JAG. While H&R Block did have delays in numerous refunds, it ultimately is up to the couple to make sure their bill is paid. Again, if their power was cut off it's because they were extremely behind. But yet can go off to Disneyland on a vacation? To me the priorities are out of line. But I guess you have to have someone to blame it on right?

[pam]

Because the refund was not deposited, the automatic payments defaulted, resulting in the electronic version of bounced checks (and the associated fees and penalties) which drained their accounts further.

I didn't see anything in the article that would suggest that they had automatic payments etc set up. Just that they didn't get their refund and the bills didn't get paid.

[Dravin]

The only way I can see this as H&R's fault (the shutting off of utilities, the delay is their fault) is if they guaranteed the refund within a certain time frame and the delay put it outside of that time frame. If you're banking on the idea that, "Most refunds are received within X days." planning on that money coming in =<X days is a risk you are taking upon yourself, it's like back when you could float checks. If some company processed a check sooner than average it isn't their fault you went red, you risked and found out the hard way that risk is real.

Edited March 22, 2013 by Dravin

[selek]

I didn't see anything in the article that would suggest that they had automatic payments etc set up. Just that they didn't get their refund and the bills didn't get paid.

You are correct- it wasn't stated explicitly.

The fact that they expected the bills to be paid in their absence at least suggests that appropriate arrangements (such as automatic deductions from their account) had been made.

On the other points and particulars, I agree with you completely.

This is a non-story that doesn't particularly merit the interest- or the sympathy- afforded it.

[Vort]

Welcome to the Obama Entitlement Mentality, where going to Disneyland is mandatory but paying one's bills is optional.

[ploomf]

Odd, usually utilities aren't immediately shut off for just one missed payment. The article said they had money in savings to pay the utilities when they got back, why didn't they just use the money in savings to pay for their vacation and then replace the money when they got their refund. That way they would have had money in their account when their automatic payments came out. Either way I don't blame H&R for this at all, it's inconvenient that they had a systems issue but it's your job to make sure you have money in your account to cover your bills.

[NeuroTypical]

My family scrimped and saved for 5 years to be able to go to Disneyland before our kids were parents themselves. We traded Christmas for the trip, and carefully planned and budgeted to skid through by the financial seat of our pants. The kids spent 6 months anticipating and giggling, I spent 6 months worried that something would go wrong and we'd have some financial or medical disaster that ruined the trip.

But even if something had happened, you wouldn't have found us whining to a reporter about whatever company had messed up. As luck would have it, it was a great trip. There was only one real thing to whine about, and it only resulted in a 1 hour delay, a minor footnote in the family Disney travelogue:

[Guest]

Welcome to the Obama Entitlement Mentality, where going to Disneyland is mandatory but paying one's bills is optional.

I'd say this is more like the Ambulance Chaser mentality. Where people jump at the chance of an error that happens 0.001% of the time and see $$$ signs. Yep, the $60 offer to refund the purchase of the software is not enough. They want H&R Block to pay their bills too or whatever.

At least they didn't take them to court like the hot coffee spilled at McDonalds incident... not yet anyway. Maybe there were no lawyers in Utah offering pro-bono.

And this is how college kid brains work nowadays. I've said it and I say it one more time - mandatory requirement for all public high school students is to live in a 3rd world country for one year. The life experience they gain is worth more than a pell grant.

Edited March 22, 2013 by anatess

[RipplecutBuddha]

My take from all this is what I've done all along, have the H&R people prepare all the paperwork, and file everything for you. That way they're already on the hook for the entire process. Yes it costs money, but that added bit of security is worth it.

I've used them (H&R) for seven years and I've never had a late return check, never had errors on the paperwork, and never had to worry once the process was done for the year.

Make the appointment, make sure you have all your relevant forms/receipts, let the professionals do what they are trained and paid to do, and you'll have far more peace of mind than if you try to do the same thing yourself. The cost is well worth it imho.

[Guest]

My take from all this is what I've done all along, have the H&R people prepare all the paperwork, and file everything for you. That way they're already on the hook for the entire process. Yes it costs money, but that added bit of security is worth it.

I've used them (H&R) for seven years and I've never had a late return check, never had errors on the paperwork, and never had to worry once the process was done for the year.

Make the appointment, make sure you have all your relevant forms/receipts, let the professionals do what they are trained and paid to do, and you'll have far more peace of mind than if you try to do the same thing yourself. The cost is well worth it imho.

Uhm, my understanding is, this is exactly what 6,000 H&R Block customers did.... and had a delay in receiving their refunds. Hence the hoopla.

[pam]

Correction. 600,000 H&R Block customers. :)

[RipplecutBuddha]

Uhm, my understanding is, this is exactly what 6,000 H&R Block customers did.... and had a delay in receiving their refunds. Hence the hoopla.

Correction. 600,000 H&R Block customers. :)

Colomb's frustration comes from the domino effect H&R Block's error has caused and said the only compensation he's been offered by H&R Block for the delay is a $60 refund on the software he used to file taxes.

Sounds to me like he bought their software and prepared his taxes himself at home. Maybe I'm reading it wrong, but that's what I see.

I didn't get charged 60 bucks to use their software when I went to their offices. I got charged for their entire professional services which was twice that if I recall right.

Just sayin'

Edited March 27, 2013 by RipplecutBuddha

[NeuroTypical]

Just FYI, someone passed some law about federal tax software - you can get it for free if you know where to click. The companies burdened with this law aren't happy, and don't make it simple, but I've used H&R Block freefile for the last 2 years without issue. (3 years ago they suckered me into paying for state filing through underhanded clicking tricks - I'll never see that $14 again!)

Anyway, you can find a list of the free programs and companies forced to offer them at irs.gov.

[Just_A_Guy]

(3 years ago they suckered me into paying for state filing through underhanded clicking tricks - I'll never see that $14 again!)

Oh, you can see it. You just won't own it.

You're welcome.