the FTC's Complaint Against H&R Block : How to File Your Taxes for Free in 2024 ?
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| How to File Your Taxes for Free in 2024? |
What is the FTC's Complaint?
The FTC plays an important role in consumer protection and market integrity. The most common consumer complaint is debt collection issues, accounting for 28% of all consumer complaints last year. Imposter scams are the second most common consumer complaint, accounting for 23% of complaints last year. These scams involve scammers pretending to be trustworthy figures, such as government officials, to trick consumers into sending them money.
According to the Consumer Sentinel Network, which collects consumer complaints from across the country, more than 3.1 million consumer complaints were logged last year. The highest number of fraud and consumer complaints were reported in Florida, Georgia and Michigan. While there was a decrease in identity theft complaints last year, credit card fraud increased significantly.
In the Amazon case, the FTC sued the company for allegedly maintaining monopoly power by preventing competitors from growing.
What is H&R Block?
The H&R Block Corporation (H&R Block) is one of the world’s largest consumer tax services providers. The company was founded in 1955 by Henry W. Bloch and Richard Bloch and has since grown to become a leader in the tax preparation industry. H&R Block offers a wide range of consumer tax services, from in-person to online tax filing. The company is based in the United States, but has operations in Canada, Australia, and other countries. The company has prepared over 720 million tax returns globally.
Beyond tax preparation, the company also offers financial products through its H&R Block bank. The company also provides business consulting services and payroll services, as well as business tax compliance through its acquisition of Wave Finance.
Are you looking for a free online tax-filing software for 2024? If so, you might want to avoid H&R Block, as the company is facing a lawsuit from the FTC for allegedly deceiving millions of consumers into paying for its products. In this article, we will explain what the FTC's complaint is, how H&R Block responded, and what are some of the best alternatives to file your taxes for free.
What is the FTC's Complaint Against H&R Block?
The FTC's complaint against H&R Block was filed on February 23, 2024, in the U.S. District Court for the District of Columbia. The FTC accused H&R Block of violating the FTC Act by engaging in deceptive marketing practices.
According to the FTC, H&R Block's TV ads and promotions claimed that consumers could file their tax returns for free, but only if they had simple returns. However, the company did not clearly explain what a simple return was, and changed the definition several times in recent years.
For example, in 2021, H&R Block defined a simple return as one that did not include any deductions, credits, or adjustments, except for the standard deduction and the earned income tax credit. In 2022, H&R Block added the child tax credit and the recovery rebate credit to the list of exclusions. In 2023, H&R Block excluded any return that had income from unemployment benefits, self-employment, or retirement accounts.
The FTC also alleged that H&R Block deleted consumers' tax data and forced them to contact customer service when they tried to switch to more affordable products. The FTC said that H&R Block was aware of the frustration and confusion caused by its ads, but did not take any steps to correct them.
"H&R Block designed its online products to present an obstacle course of tedious challenges to consumers, pressuring them into overpaying for its products," said Samuel Levine, director of the FTC's Bureau of Consumer Protection.
On H&R Block's website, it advertises alternatives to the free version that cost from $35 to $85 for a federal return. The FTC is not seeking any civil penalties, but wants the company to stop its deceptive marketing and provide refunds to affected consumers.
How Did H&R Block Respond to the FTC's Complaint?
- H&R Block, however, denied any wrongdoing and said that it believes "we provide our clients with a great deal of value, unmatched tax expertise, and fair and transparent pricing." The company also said that it has offered a free, do-it-yourself "filing option for more than 20 years to help millions of Americans file their taxes.
- H&R Block also said that it has made several changes to its online products to make them more user-friendly and transparent. For example, it said that it has simplified its product selection process, improved its customer service, and added more disclosures and disclaimers to its ads and promotions.
- H&R Block said that it will "vigorously defend" itself against the FTC's allegations and that it is "confident that we have always acted in good faith and with our clients' best interests in mind."
What are Some of the Best Alternatives to File Your Taxes for Free?
If you're looking for a truly free online tax-filing software, you have several options to choose from. The IRS offers a Free File program that allows anyone with an adjusted gross income of $72,000 or less to file their federal taxes for free using one of the participating software providers.
Some of the providers also offer free state tax filing, depending on your income and location. You can use the IRS tool to find the best option for you.
Another option is to use Credit Karma Tax, which is a free online tax-filing software that supports most tax forms and situations. Credit Karma Tax also offers free audit defence and guarantees the accuracy of its calculations.
Alternatively, you can use TaxSlayer Simply Free, which allows you to file your federal and state taxes for free if you have a simple tax situation. TaxSlayer Simply Free supports the Form 1040 and schedules 1, 2, and 3. It also offers free email and phone support.
Conclusion
H&R Block is facing a lawsuit from the FTC for allegedly deceiving consumers into paying for its online tax-filing software. The FTC claims that H&R Block's ads and promotions misled consumers about the availability and eligibility of its free products.
If you're looking for a free online tax-filing software, you should be careful and read the fine print before choosing a provider. You can also use one of the free options mentioned above, such as the IRS Free File program, Credit Karma Tax, or TaxSlayer Simply Free.
We hope this article helped you understand the H&R Block scam and how to file your taxes for free in 2024. If you have any questions or comments, please feel free to leave them below. And don't forget to share this article with your friends and family who might be looking for a free online tax-filing software.
