The Horrors of the IRS?

My family has a less than stellar past with the IRS, owing to a bad tax shelter deal that occurred when I was but a wee child. So, in most instances, I err on the side of conservativism and caution in dealing with the IRS.

For the last few years, I have been using H&R Block's online tax service because they offered a computer style interview process, and allowed me to file electronically. The benefit was that all of my data was accessible to me at any time online should I want or need it.

I had a few complicated years of taxes, mostly surrounding the fact that I have a Health Savings Account, Student Loan Interest, and sold some stock, and had additionally some unemployment income. I wanted a place where I could get my taxes done that wouldn't cost me an arm and a leg, but that wasn't going to take a month to get done.

I had previously used Jackson Hewitt tax services for a few years, up until the agent LOST all of the paperwork I gave him.

I got a notice from the IRS a few weeks ago noting that my 2008 (really on the ball, that IRS auditing process) tax return was in error. And that I now owe them more money. And penalties. And interest.

Upon examining all of the paperwork that the IRS sent me, it turns out that one of the forms H&R Block processed omitted some information. This makes it look to the IRS that I underpaid. And they want their money.

For all of the horror talk that you hear about the IRS, the agents on the phone have all been very nice and helpful. They offered suggestions, and one today even offered to have a local agent help me with H&R Block if I was having problems. (Guess they screw up a lot of people's taxes...)

H&R Block was not so friendly. They told me to PAY what the IRS says that I owe, including penalties and interest. If there was an error on my return, they would then in turn, reimburse me the penalty and interest money paid. Notice, they would not pay the money that I owe. I guess it is my money that is owed, and I got the refund. It still pisses me off that they screwed up, and I am going to pay for it. Plus they want me to fax them all of the IRS paperwork, and they'll examine it. And then they'll get back to me. In 6 to 8 weeks.

The IRS only gave me 30 days. I requested another 30 day extension. So I should have enough time to come up with the money that they think I owe.

The good news is that I think I figured out how H&R Block screwed up, and I don't actually owe anything. The IRS says that if it was just a bad form, I just have to send it in, and it would then negate my penalty and interest, and wipe out what I owe.

For all the horror stories, the IRS was very nice and helpful. It was H&R Block that pissed me off. Shame on you. Shame on you very much. You took my money, screwed up my refund, and then wouldn't help me figure out what the problem was. I basically had to do my entire return over again, on paper, myself, with out help.

I take that back, the IRS helped me go through the papework.

Way to make yourself look good IRS.

H&R Block, you can bite me.