Basketball Brackets Give Way to Tax Brackets

Basketball Brackets Give Way to Tax Brackets
H&R Block can help on-the-go tax filers save time and money with mobile filing apps

FOR RELEASE MAR 28, 2012

While mobile technology brings the latest tournament basketball scores and bracket updates to fans’ smartphones, it also brings tax filing to the fingertips of tax return filing procrastinators. In roughly the time it takes for a TV timeout, taxpayers can complete and file a tax return using the latest in mobile technology.

In addition to checking brackets on a smartphone or tablet, taxpayers can easily and quickly file a federal form for free with H&R Block. On the iPad tablet, filing the 1040, 1040A and 1040EZ forms is free all tax season. Taxpayers with smartphones can file both a simple federal form and state form completely free through April 17 using the industry’s only fully free mobile tax filing products. Just download the free H&R Block At Home™ 1040EZ app on the iPhone and an Android smartphones, and the rest is a slam dunk. 

“While the hoops tournament is down to its final four teams, taxpayers can score an easy victory with H&R Block’s entirely free mobile filing app for federal 1040EZ and state tax returns using our iPhone and Android apps,” said Jason Houseworth, president of digital tax solutions at H&R Block. 

$100,000 Sweepstakes Count Down
Even if their team is no longer playing, H&R Block At Home clients can still win big in the company’s $100,000 Grand Prize Giveaway. To date more than 1,200 clients across the country have won more than $200,000 in the sweepstakes by using the H&R Block At Home digital tax filing products. 

In addition to the $100,000 grand prize that will be awarded after April 17, daily cash prizes of $50, $100 and $500 are given away every hour, all day through April 17 to taxpayers who file their tax returns using the H&R Block At Home software, online or iPad tablet products. For the official rules and other sweepstakes information, visit www.hrbathomegiveaway.com/shared.

The H&R Block At Home products offer the H&R Block guarantees of free audit support, free audit representation, accurate calculations and the maximum tax refund to which the taxpayer is entitled.

H&R Block’s tax professionals provide guaranteed tax return preparation services in-person at retail tax offices open year-round and through Block Live^SM, the only face-to-face online tax preparation experience available in the industry. Do-it-yourself filers benefit from the expertise and guidance of The Tax Institute at H&R Block^® when using H&R Block At Home™ on their computers, tablets and smart phones. Because understanding taxes is an integral part of managing personal finances, H&R Block keeps the conversation going with clients all year via blogs, tweets and Facebook status updates.

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All IRS Tax Audits Not Created Equal

All IRS Tax Audits Not Created Equal
H&R Block advises compliance contacts don’t have to be costly

FOR RELEASE MAR 26, 2012

Data for last year shows the IRS audited the tax returns of approximately 1 percent (1.6 million) of taxpayers. However, further inspection indicates that the tax returns of an additional 6.5 percent (9.2 million) of taxpayers were subjected to recently defined type of compliance contact. The National Taxpayer Advocate called these compliance contacts “unreal” audits in a recent blog post¹.

No matter what an IRS notification or compliance contact is called, H&R Block advises on the benefits of having professional assistance when responding to an IRS notification. 

The 9.2 million taxpayers who were notified the IRS had recalculated their taxes due, also could have been assessed added penalties and late fees. The notifications happened for the following reasons:

• 4.7 million returns were corrected for math errors
• 3.9 million returns were determined to have underreported income based on third-party reporting, which is done by employers, banks, etc.
• 600,000 substitute returns were filed by the IRS on behalf of taxpayers based solely on income reported by third parties, perhaps resulting in taxpayers not claiming the tax credits and deductions to which they are entitled.

 “While it might seem the only appropriate response to an IRS notification is to pull out the checkbook, it’s important to understand the request,” said Elaine Smith, H&R Block tax professional and enrolled agent. “The IRS has several ways it corresponds with taxpayers to correct underreporting errors. So, not all audits are created equal.”

H&R Block, which prepares approximately 1 in 7 tax returns nationally, also provides audit services to current and new clients. Only enrolled agents, certified public accountants and lawyers may represent taxpayers through the entire IRS audit process. H&R Block employs the nation’s largest single staffing of enrolled agents, who have experience with audits involving hundreds to millions of dollars. In fact, in an audit situation H&R Block is able to reduce the overall tax liability for 3 out of 5 taxpayers whose returns were not prepared by H&R Block.

Audits hit all income levels
The primary targets of audits are no longer small business owners and those whose income exceeded $1 million; 64 percent of the 1.5 million taxpayers audited in 2010 earned $50,000 or less, including taxpayers who claimed the Earned Income Tax Credit, but were not eligible. This means an overwhelming majority of taxpayers subjected to audits and other forms of compliance contact are low- and middle-income taxpayers. Following are other factors that may make taxpayers attractive audit candidates:

• Handwritten returns
  • Miscalculations and omissions that could be avoided by using tax preparation software and e-filing can cause even the most straightforward returns to be audited
    
• Unreported income and inconsistencies
  • A document-matching program makes it easy for the IRS to check income stated on a tax return against what is reported on forms W-2 (wages), 1099-MISC (self-employment income),1099-INT (interest paid), 1099-B (sale of stock), etc.
  • The IRS also uses a program to compare taxpayers’ deductions (e.g., mileage and charitable contributions) with others in the same tax bracket to check for inconsistencies
    
• Schedule C (self-employment form)
  • Returns are more likely to be audited if they include claims for expenses not within the IRS’s guidelines and include a majority of cash business transactions.

Like audits, not all tax preparation companies are created equal. Only H&R Block’s guarantee provides free audit support for returns prepared by its tax professionals in tax offices, and free, full audit representation for returns filed by taxpayers who used its digital, online and mobile filing solutions. IRS notifications are sent year-round, and these services are available year-round.

“Avoiding errors on tax returns starts with choosing the right tax prep method based on individual needs, and it can help a taxpayer avoid an audit situation,” Smith said. “Taxpayers shouldn’t panic or ignore IRS notices. Instead, they should seek professional assistance to make sure the changes the IRS made to their return are accurate. H&R Block may find you actually owe less than what the IRS indicated.”

H&R Block tax professionals are offering free Second Look® reviews on 2008-2011 tax returns not prepared by H&R Block to identify overlooked tax breaks, such as the Earned Income Tax Credit. Free Second Look reviews are available at participating H&R Block retail tax offices through April 30 to new and existing clients. To find the nearest H&R Block office, visitwww.hrblock.com or call 800-HRBLOCK.

H&R Block’s tax professionals provide guaranteed tax return preparation services in-person at retail tax offices open year-round and through Block Live^SM, the only face-to-face online tax preparation experience available in the industry. Do-it-yourself filers benefit from the expertise and guidance of The Tax Institute at H&R Block when using H&R Block At Home™ on their computers, tablets and smartphones. Because understanding taxes is an integral part of managing personal finances, H&R Block keeps the conversation going with clients all year via blogs, tweets and Facebook status updates.

¹What’s an Audit, Anyway? Jan. 25, 2012

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