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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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728 thoughts onH&R Block Class Action Says Free Tax Filing Option Hidden
I used h&r block and they said I had to use the $50 option but ended up charging me $200 in fees. I am on food stamps and I barely make any money. They took most of my return. In Oregon 2022
Filed taxes thru H&R Block from 2014-2022
You know what’s wild, is I specifically asked her by phone or email for any discounts considering I had a simple tax return that took her all but 9 minutes.
I was charged over 400 last time how do I get refunded
I’ve been charged hefty fees from them for as long as I can remember. I am a single mother of 2 and one year I made a whopping 40k. I was still charged.
I am a single & divorced female not by choice. A deduction of 80 to 100 thousand income after a marriage of 15 years. Never mind the premeditated , crushing betrayal and details of that story. I worked full time before and also during most of the marriage. The 10th year I (WE) became pregnant a joint decision. Also jointly decided that I would leave the workforce. Funneling my income surplus after all utilities paid for, groceries, and home necessities etc. Into His pension. Our plan mutually agreeing as to build OUR nestegg. Never expecting devorce! On my own…homeowner , parent frugally surviving by doing without. Reentered the work force same company 14+years. Loss of employment. Noticing payments coming out of my already compromised checking account. The bank account with Wells Fargo also long term , over 20 years. At the absolute worst period financially IN my entire life WF made aware chose to make things MUCH worse for me. Scared to death what they were doing, unannounced & unauthorized. Again a betrayal way beyond comprehension. Their choice to manipulate my account in such a way that COST not only in $ but severe emotional, and mental anguish to this day unrelenting. Already 10 years of being treated for ptsd for current and past traumas W.F. generously contributed damages with aggressive abusive painfull actions that were severely shocking. The worst part was that my call to law enforcement was counterproductive. This enabled W.F. to continue their crimes of fraud and theft. Not just my last few dollars but my identity as well. It took almost 2 years for the bank to be exposed and charged. Fiduciaries responsible for your monetary safety? Police to protect and serve? Single parent homeowner consideration? Within 2 years I lost the home, my home that I lived in for 29 years. Unfortunately witnessing other family members being dismantled and the LAWS supposed to provide justice to the righteous instead enabeling and promoting criminals to commit crimes against innocent victims. A systematic destruction that maintains a course > ONE WAY in the wrong direction. Now H& R Block can listen to a customer explain the hardships that the past years have provided and deny even though under contract with the IRS to promise as agreed. Not a NO charge but basically a theft to defraud and victimize. Sorry for all that. Count me in to the class action against H & R Block for BAD faith behavior. Not only did they charge me for my tax returns (2) but made errors that I am realizing After The Fact and seemingly chose the wrong path to “Gurantee” the best refund. I go to them trusting that they are competent and professional. If I knew the tax laws I sure would do this for myself.
I just filed my taxes with h& r block after filing myself last year and not being able to prove my identity I decided to go throu them. I am a single mother of two with no legal ride no established home taking care of my mother and her husband both who are disabled and living in a home with a tree in the roof and black mold taking over. I have received no stimulus or child care credits and have a w2 to prove my employment. I was told they can’t help prove my identity for the prior years and that my return would be a little over 4 thousand. But with having to pay for no taxes withheld. I knew I wouldn’t get that. But h&r block charged me almost 500 with a refund transfer fee. And I was told that if they added my deductibles it would drop my refund more. I am in complete shock an have no idea what to do now. Plans of around 6 grand atheist now has me barley over 2 grand and no clue how to make it. This can’t be right
I didn’t agree to or wasmt even notified before filing of the fee and now am screwed.
I just had this happen to me as we are doing my taxes she said I would be getting a credit from the state for 300.00. When she put the information in she said oops! It’s only going to be 66.00 and there fee was 30.00. So they got half of this and I only made 15000.00. I am self employed And work for Uber which because of having my own business I was charged 450.00 to do my taxes!!I was supposed to receive 918.00 now due to the extreme charges from h&r block I am only receiving about 500.00. This should not be allowed they say 80.00 on there web site and NEVER EVER mentioned the fees until my taxes where done and did not give me a choice to go somewhere else. This should be legel please add me to your suet against H&r block!
PLEASE..PLEASE..PLEASE HELP
BEEN with HnRBlock since 2014 .. Since that year I been Charged out the rear end.!!!Not only those fees but 2017 an error was done on my taxes that my same tax preparer typed in filed electronically. Janitorial business 3 dependents added my transportation gross went up by few thousand nothing major.IRS Started taking my refund ..sending me letters that I didnot recieve till I had issue with mail missing that’s when I found out about missing irs letters …brought this to my tax preparers attention she carried on as to taking care of the issue …filling out my taxes every year I would watch the screen and never seen no red alerts pop up..I did question her about my refund I was constantly put off then of course they are closed no contact …I made sure to get the protection if something was to go wrong ..I SOOO DEPEND on my refund WITHOUT A FEW YEARS REFUND… my BUISNESS,transportation,MyHOME ,MY CHILDREN OUR LIFE!!! EFFECTED ,STRESSED,SADDENED…WE LOST OUR CAR…OUR HOUSE GOT EVICTED(EMBARRASSMENT) MY MARRAIGE STRAINED…BUISNESS SLACKING ON TOP OF all the COVID reasons…No money for a lawyer don’t even know where to start….I HAVE PRAYED ON IT SOO MANY TIMES…ALMOST every year the fees for filing have been close to 400/500.00 Dollars!!!! On top of not getting my Refunds….I tryed calling Irs to only get the run around….PlEASE HELP ME !!!! OUR FAMILY DESPERATELY NEEDS ONLY WHAT IS RIGHT …I pray….you know HNR BLOCK THEY don’t understand how IT IS FOR US common folk to work so hard living paycheck to paycheck..to hold out information that pulls money away from us that we work hard for…I’m GLAD someone finally spoke up PLEASE ADD ME IN THE LAW SUIT….I Pray GOD will make a way and JUSTICE WILL BE DONE!!!!
They are still doing this. I filed twice before with H&R for free, but this year, filing for 2022, they sucker-charged TWICE in the middle of filing, for a total of $104. And if I hadn’t had a credit card, they would have taken it out of my refund for ANOTHER $39. Absolutely disgusting extortion of the poorest taxpayers. Add me to the class action suit. (I wish I had screen shot the screens where they give you no way out other than ditching your return, but I’m sure someone has these documented.)