Federal tax letter of deficiency

[jk15090]

My husband and I recently received a letter of deficiency from the IRS for year 2007. We had our return prepared at an H&R Block office (we used the drop-off service) but there was a problem;the return that they gave us at the time and the return that the IRS has on file are 2 different things! The one we thought was filed included all of our income,however, the one on file with the IRS does not include any income but my husband's. We did not purchase the "piece of mind" guarantee from them and we are being pushed by one of H&R Block's preparers to sign a letter 5564 notice of deficiency waiver...is this a good idea? H&R Block is telling us that they may pay for some of the interest but it's been about 8 weeks with no response from them and we have to take some action by the end of August.

 

[BaBaBooey]

My husband and I recently received a letter of deficiency from the IRS for year 2007. We had our return prepared at an H&R Block office (we used the drop-off service) but there was a problem;the return that they gave us at the time and the return that the IRS has on file are 2 different things! The one we thought was filed included all of our income,however, the one on file with the IRS does not include any income but my husband's. We did not purchase the "piece of mind" guarantee from them and we are being pushed by one of H&R Block's preparers to sign a letter 5564 notice of deficiency waiver...is this a good idea? H&R Block is telling us that they may pay for some of the interest but it's been about 8 weeks with no response from them and we have to take some action by the end of August.

The first thing you need to do is stay calm.
The peace of mind guaranty is worth every dime.
Unfortunately, you learned the hard way.
Also, you should ALWAYS file electronically and get a copy of what was sent by H&R Block to the IRS.
They should provide this to you anyway.

You clearly owe the IRS the money if there a mishap with the returns.
Do NOT wait for the situation with H&R Block to be correct before you pay.
Pay the IRS and then work it out with H&R Bock.

If you use H&R Block, make sure that you are using a preparer who is actually a CPA or an IRS enrolled agent.
Don't let them put you with someone who has only gone through their training program.

If H&R Bock can't give you someone with these qualifications, go somewhere else.

 

[jk15090]

H&R Block filed the return electronically-the copy of which we were presented with. The proceeding year (2008) we requested a copy from them (filling out the FAFSA and couldn't locate the original-which I have since found) only to be surprised that the return was completely different. Then we received the letter from the IRS shortly thereafter. We have since hired counsel to refile everything since nobody can figure out where the figures came from used on either incorrect return and no one from H&R Block wants to talk to us...the original person who filed was not listed on her card as a Tax Advisor II as well as Office CoOrdinator...can you imagine lol?

 

[CharlesEvans]

Relax as you can have your Canadian income tax corrected. Nothing to worry about.