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H&R BLOCK SCREWS OVER EVERY 8863 STUDENT IN THE U.S. / WON'T GIVE OUT TAX REFUNDS OR ANSWERS
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[link to www.facebook.com (secure)]
[link to www.facebook.com (secure)]
H&R Block Inc. customers claiming education tax credits got a surprise this week when the IRS told them that that their return had been submitted incorrectly, possibly delaying their refund by six to eight weeks, customers say.
H&R Block posted an item about the issue on its Facebook page on Thursday. By Friday afternoon, the post had attracted more than 1,100 comments from angry, confused or concerned customers, many of whom had received letters from the Internal Revenue Service indicating a problem.
“I've got friends who filed through TurboTax, and they're getting their money,” said Brendan Williams, a graduate student in Oregon. Williams said he was relying on his $3,000 refund to pay rent and utility bills, which are now overdue. He might not see any more money until April 1, when a student loan check is scheduled to arrive.
The company did not immediately respond late Friday to requests for comment. It updated its Facebook page late today, saying "we are assured (the refund_ will not take that long."
"We have worked with the IRS to expedite a solution to this issue for all of our affected clients," the company's Facebook post said.
The problem appears to revolve around returns filed before Feb. 22 with Form 8863, which is used to claim the American Opportunity and Lifetime Learning tax credits.
The form asks whether the college student had been convicted for a felony drug charge. H&R Block apparently left the "No" answer blank when the IRS expected it to be checked, customers say.
James Bisard of Gresham said he received a letter from the IRS saying his Form 8863, used to claim education credits, was incomplete.
"I got my state refund three weeks ago," Bisard said, according to a transcript he provided of an online chat with H&R Block customer service representative. The rep offered him a refund, but also claimed the company was not responsible for the mistake, according to the transcript Bisard provided.
Williams filed H&R Block's online program in February. He discovered today that the IRS had flagged his return.
H&R Block told investors yesterday that its third-quarter loss widened because of delays Congress caused in the tax season.
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