Unethical H&R Block Keeps Refund Anticipation Loans

Filed in Court, Illegal, Intuit QuickBooks by on May 2, 2010

JPMorgan Chase is sending notices to around 13,000 tax preparers that it is exiting the refund anticipation loan (RAL) business. Santa Barbara Bank & Trust also exited this past tax season, making Jackson Hewitt scramble for RAL partners. HSBC will leave the RAL business when current agreements end. Intuit long ago dropped a ProSeries version designed for it.

RAL loans created a backlash from consumer advocates, who complain about high interest rates (often more than 100%) and warn mainly low-income consumers to steer clear. Such loans would be illegal in many states, but the loan agreements say they shall use the laws of a state with a rare loophole. Of course, our corrupt politicians (in both parties) and our top Internal Revenue agents keep showing that they have no sense of shame by continuing to allow these loans.

Now please click an ad so I can keep writing about QuickBooks, H&R, and ridiculous government waste and deficits.

The changes will benefit the unethical H&R Block, which keeps Refund Anticipation Loans. H&R had to settle related lawsuits for many billions of dollars. How H&R tried to settle the suits relates to ONE reason why I feel it should be subject to RICO Act (Racketeer Influenced and Corrupt Organizations Act) prosecution. H&R apparently made a sweatheart deal with one attorney, with relatively few clients, to try to supersede claims of many other more aggressive attorneys. An appeals court threw out the deal, barred the attorney from involvement in the case, and suggested a Bar complaint.

That is why it is outrageous that the unethical non-CPAs and non-IRS Enrolled Agents at H&R would use a Cayman Island subsidiary to claim that a nationally known CPA, like me, would try to steal its misinformed and badly served penny-pinching clients. It is doing so by objecting to my distinctive descriptive BlockTax trademark. It is like the descriptive marks you can find with Google images for No Taxes. That is, it has a circle (the O in BlOck) with a slash through it and the word Tax inside the O. What makes this especially outrageous is that H&R had a completely different BlockTax trademark, but dropped it in 1993.

Now please click an ad again, especially if it is from QuickBooks. This will support a Boycott QuickBooks movement by not making any new QuickBooks purchases. It will limit the 95% Intuit monopoly and support the thousand QuickBooks hosting companies Intuit wants to kill, after actively enmcouraging them for five years. It also will help the 1.5 million users of QuickBooks 2007 or earlier. Intuit is deliberately crippling their QuickBooks copies, faster than ever before. Remember, if Intuit can do this, it can destroy your copy of QuickBooks after 30 days instead of 30 months, and make it so there is nothing you can do.

I have spent my professional career agressively responding to anyone who even suggests that I may be any relation to H&R. I do not make refund Anticipation Loans, never have, and never will. Therefore, I will never use them to hide hidden kickbacks, as H&R did massively, while violating rules on disclosing interest rates.

I strongly avoid simple tax returns, which are the only thing the mainly minimally trained H&R students, housewives, and other seasonal workers do even reasonably well. I legally and aggressively represent clients before Internal Revenue, without letting government agents talk to them. I do not con clients by sending an unlicensed and untrained person with them. H&R sends such people “not as a legal representative, but to explain how we prepared your tax return.” Some day I must hear how they do this (“The client gave us the information. We added it up and entered it on the tax return.”)(?). The different approach, with more complex tax returns, lets me document tax savings that are many times the extra fees I charge, compared to H&R Block or TurboTax.


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