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A class action lawsuit has been filed against H&R Block by a customer who alleges that the company redirects low-income taxpayers who are entitled to a free tax program to their fee-based tax filing products.
Plaintiff Aaricka Swanson says she paid for H&R Block’s online tax filing software in order to file her tax returns, despite the fact that she was qualified for the IRS Free File Program.
The plaintiff states that she was charged $64.94 to file her taxes though H&R Block’s software.
Specifically, Swanson says she was charged $29.99 for a “federal return” and $34.95 for a “Refund Transfer Fee.” The plaintiff alleges that H&R Block should not have charged her anything because her adjusted gross income was under $66,000.
“Had H&R Block not misrepresented the nature of its tax preparation and e-filing services and informed Plaintiff Swanson of the existence of and her eligibility to use the Free File software, she would not have agreed to purchase H&R Block’s software,” the H&R Block class action lawsuit claims.
The plaintiff also states that she believed her only option was to use the paid software and that if H&R Block made the free tax filing program accessible, she would have opted to use it over the paid version.
The H&R Block class action lawsuit claims that, under an agreement with Free File Inc. and the IRS, H&R Block and other tax companies must offer 70 percent of United States taxpayers (currently, those with an Adjusted Gross Income of $66,000 or less) the chance to file their taxes at no cost.
The plaintiff alleges that H&R Block and other online-tax preparation companies created the entity Free File Inc., which was formed to work with the IRS to provide free electronic filing services for those who qualify.
The H&R Block class action lawsuit states that the agreement between the IRS and Free File was created so that the IRS would not have to start their own free-filing software.
“H&R Block, however, has been luring customers into paying for a service that it promised the government and consumers it would give away for free,” the plaintiff claims.
Swanson notes that H&R Block breached its contract with the IRS by hiding access to the Free File Program and redirecting taxpayers who qualify to the fee-based products. The plaintiff claims that H&R Block advertised one of its products under the name “Free Online” which led many taxpayers into believing that they were filing their taxes under the Free File Program.
The plaintiff alleges that she was then hit with charges after spending a long time entering information and preparing to file her tax return.
“After luring lower-income consumers to begin preparing their returns with the ‘Free Online’ software (which is not actually free for most taxpayers), H&R Block then manipulates consumers into paying for product upgrades and upsells,” the H&R Block class action lawsuit claims.
The plaintiff says that because of their conduct, H&R Block has made millions of dollars in “ill-gotten gains from persons who can least afford it.”
Did you qualify for H&R Block’s Free File Program only to be charged for preparing your tax return? Leave a message in the comments section below.
The plaintiff is represented by Eric D. Barton and Sarah A. Ruane of Wagstaff & Cartmell LLP and Yitzchak Kopel and Andrew Obergfell of Bursor & Fisher PA.
The H&R Block Free Filing Class Action Lawsuit is Swanson v. H&R Block Inc., et al., Case No. 4:19-cv-00788, in the U.S. District Court for the Western District of Missouri.
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729 thoughts onH&R Block Class Action Says Free Tax Filing Option Hidden
Add me also. I left after 10 years of doing taxes with them
Add me also.
Add me to the H&R Block list! In order to get an extra tax credit we were eligible for, we had to pay extra! That’s BS!
Had my taxes done for 2 years and the Tax preparer knew I didn’t have much money cause I’m very low income and he said no problem it won’t cost much. But I did ask him how much and he wouldn’t tell me only it would not be much. I’m on SSDI and I told him that. He said no problem. I’m a single filer and DON’T ITEMIZE anything and to do my 2020 taxes it costed me $234 which I can’t afford and for my 2021 it costed me $254 which I don’t have that kind of money either. So I can’t get my taxes back until I come up with all this money. Where am I going to get that kind of money? So now they sit at the office I had them done. This tax preparer wants to send the 2021 in first cause they are due but I told him NO the 2020 has to go in first and he said we will do it my way first. I said NO!! 2020 GOES IN first b4 2021. The office is now temporarily closed. I have no way of getting my taxes at all. If I would of known it was going to cost that much money I would have NEVER BROUGHT MY TAXES THERE. I would of gone elsewhere. H & R Block is a HUGE rip off when it comes to low income people. They lie to us low income people.
Add me
They did mine online at office but did it on free site claiming irs oked it now it lost and I paid $145 cash no receipt then sent my return thru usps so they made major boo boo
Add me ..they charged me $250..00 when I made the appointment they told me it was only going to be 60.00
ADD ME TOO
I paid for years
Today I filed a complaint against H&R Block, about my refund needing to be re-adjusted by the IRS, without H&R Block informing of any changes, their response was they didn’t know. They also knew I was low income, because I was only using their services for my Child Tax Credit, and I don’t have an income. They did not file my taxes correctly, and did not explain much of the process to me, I told them my complaint that I should not have to pay their fees, because most of my conversation with felt false. Is there a way to add myself to this law suit, or refine another one against H&R Block for the same reason? JR ladyjrhovan@yahoo.com Thank you
I would like to be added to this lawsuit, I filed with H&R Block and I was charged about $450
How can I get on this lawsuit