Taxpayer asks:
Hi…
I’m about to file my taxes through efile using H&R Block’s Tax Cut software. I was wondering if the IRS will see my list of charitable organizations? When I filed paper copies in past years, that information was not disclosed.
Does efile provide the IRS with more information then paper filing?
Thanks!
Taxgirl says:
I can’t speak to the specifics of TaxCut but most software with efile capabilities only sends the required forms with no additional information. If you’ve made cash contributions, those will be reported on Schedule A, though not by name. If you’ve made non-cash contributions valued at more than $500, those will be reported on form 8283.
In most cases, the pages which you keep as your file copies are more detailed than what is transmitted to IRS. This makes sense because at audit, you would want to be able to break out charitable contributions by organization (and provide the applicable receipts).
If you want confirmation of what is being efiled, you can always try to contact H&R Block directly by phone (1-800-HRBLOCK or 1-800-472-5625) or online.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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Who really benefitted from the economic stimulus plan?
Tax professionals for sure.
H&R Block, the nation’s largest tax preparer service, reported a banner quarter. The company prepared taxes for over 23.5 million clients – due largely to the rush for rebate checks.
This means that H&R Block posted a profit this quarter, which was good news for investors. Profits from the company were up more than $625 million for the same period last year.
So, at least someone is happy about the stimulus plan…
(Hat Tip: Talk Stock Trading)
H&R Block has become the target of a number of lawsuits alleging wrongdoing. Among them…
California is suing the company alleging that it has violated state and federal
laws in marketing and providing high-cost refund anticipation loans with interest rate exceeding 500%. The laws which H&R Block are alleged to have broken include those regulating debt collection and contracts, false and deceptive advertising, unfair business practice and the sharing of individuals’ tax return information. The complaint asks the court to pay restitution and fines, which could total hundreds of millions of dollars.
New York has also brought a $250 million suit against the tax preparation giant, alleging that the company improperly marketed money-losing IRAs to its customers. The scheme, according to NY Attorney General Spitzer has resulted in more fees than interest for 85% of the customers in NY who purchased the IRA.
These lawsuits follow on the heels of a settlement filed in December 2005 to resolve claims in 22 states and the
District of Columbia related to the company’s controversial payday loans. The exact terms of the settlement were not disclosed but the company will pay claims to 8 million customers
who took out payday loans between 1989 and 2005. The lawsuits had alleged that the lending practices for these loans were deceptive, resulting in excessive fees and usurious interest rates.
A similar lawsuit has overcome legal challenges in Chicago, where a federal judge moved that racketeering charges against the tax company could stand. The suit, which started with one plaintiff and has landed in federal court alleges fees and interest charged to consumers with annual rates of up to 2000%.
And complicating an already questionable fiscal year, the company reported that it had miscalculated its own taxes, resulting in a $32 million liability.
Despite all of the bad news, the company remains optimistic, noting that although their numbers of customers were lower, their higher rates have resulted in a slight revenue increase.
