WSVN — Many people are now getting ready to file their income tax returns. Hopefully all the information will be accurate, but if it’s not and you get fined by the IRS, who has to pay? You, or the person you pay to prepare your taxes? The answer is here on Help Me Howard with Patrick Fraser.
They say two things in life are certain: death and taxes. Fortunately, you are alive.
Unfortunately, you are about to have to deal with your income taxes.
J.C. Smith: "I file my taxes every year."
J.C. owns a small business.
J.C. Smith: "I do asphalt, I do green fields, septic tanks, about everything you could do."
J.C. says, when you are the boss, you have to make sure everything is done the right way. That’s his attitude when it comes to his income taxes.
J.C. Smith: "H&R Block, I went to them. They were good, right, because they’re nationwide. I went there so I wouldn’t have no problem with the IRS."
Last year around this time, J.C. paid H&R Block $800 to do his taxes. Then September rolled around.
J.C. Smith: "IRS wrote me a letter and told me I filed the wrong form and have to file an ‘S’ form and send that to them."
Since it’s the IRS, the letter didn’t come with a "we forgive you" card. Instead, J.C. got penalized for sending in the wrong form.
J.C. Smith: "So they’re charging me $1,565."
J.C. headed back to H&R Block to talk to the person who filed his tax return.
J.C. Smith: "And the lady told me I’m supposed to tell her what kind of form to put it on. If I would have known all that there, I could have filled it out myself."
The tax firm then filled out the correct form and refiled J.C.’s taxes. J.C. then asked H&R Block to pay the penalty for their mistake. The response?
J.C. Smith: "That they’re going to have someone come out and interview me to see if it was my fault or their fault. It’s been about two months, and nobody came out."
J.C. got tired of waiting, so he paid the penalty to the IRS. Then he called Help Me Howard to find out, if the IRS fines you, who has to pay for the mistake? You, or the person who prepared the taxes?
Howard Finkelstein: "If the tax preparer makes a mistake by using the wrong form or preparing the form incorrectly, they are responsible for any fines or penalties. However, if they make a math error and you get too much back or pay too little, you are responsible for that. They are responsible for any penalties."
We contacted H&R Block. Good companies are easy to deal with.
They sent us a statement saying, "We take this matter very seriously. A local tax professional did work with the client to resolve the situation. We have covered penalties and interest. We regret any inconvenience this caused."
Howard Finkelstein: "When your tax preparer hands you the return to sign, check the math. Make sure the deductions are appropriate and you are filling out the proper form. Take your time and read it. It’s easier to prevent a mistake than to correct it after it happens."
J.C. Smith: "Well, it was real quick. It was quick."
H&R Block sent J.C. a check to cover the interest and penalties. Now he can file that problem away.
J.C. Smith: "Help Me Howard did me a big favor. I’m glad of them. Poor people can’t afford a lawyer, so Help Me Howard, they were right there on time."
Howard said, if your preparer makes a mistake and you get too much back, you have to pay it. Why don’t they have to pay it? Because if they had done it properly, you would have had to pay it anyway. Bottom line, be careful before you sign that tax return.
Got a situation that’s taxing your patience? Ready to deduct it from your list of troubles? Contact us. We will take interest and return your peace of mind.
With this Help Me Howard, I’m Patrick Fraser, 7News.
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Reporter: Patrick Fraser at pfraser@wsvn.com
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