Legal Question in Consumer Law in Georgia

In February of 2008 we bought a home and when we filed our taxes using H & R Blocks TaxCut software I entered the date of purchase into the question and answer areas where it asked about home purchase for the home tax credit. I went all the way through the process and was approved for the credit, I efiled our taxes and they were received on the 2nd of March 2008. The IRS accepted it also and sent the refund which included the home tax credit. Now the IRS has sent us a notice saying that we didn't qualify and starting in January they will reverse that decision and tack on penalties and interest to the amount. Because we didn't qualify for the credit we aren't allowed to make the 15 annual installments without interest. I have talked to both the IRS and TaxCut and according to tax cut because I had a computer crash and can't supply them with a data file, that I need to set up payments with the IRS. I still have the email notifications showing that I used their software and the IRS verified that on the 5405 form I did enter the correct date. What can I do about this? Is there any way that H & R Block TaxCut can be held responsible for the penalties on this?


Asked on 10/16/10, 2:07 pm

2 Answers from Attorneys

Phillip M. Cook Cook Legal Services, LLC

It depends entirely on the terms and conditions of the software. I strongly recommend that you hire a Georgia tax litigator who can: (i) negotiate a settlement with the IRS, and (ii) review the terms and conditions of the software and see whether TaxCut may have a duty to protect (indemnify) you. It goes without saying, you should NEVER do your own taxes for this very reason. There are H&R Block locations all over the State of Georgia. Walk into one and pay the small fee to have them do your taxes every year. If they mess up, they pay.

Best of luck.******The above is for informational purposes only and does not create an attorney-client privilege.*******

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Answered on 10/21/10, 3:22 pm
Scott Riddle Law Office of Scott B. Riddle, LLC

TaxCut is a software program not a CPA. You also must assume we know the terms, conditions and disclaimers that you agreed to when using the software because you say nothing at all about them. Read the agreement about errors.

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Answered on 10/21/10, 3:22 pm


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