Tax Prepare places like HRblock

Has anyone used one of these? My question is, aren't they supposed to find any debt you owe in their systems when they run your info? I was supposed to get a certain amount back but then I get a letter saying all of it has been taken to pay a debt. I had no idea it was on there and was told that these tax places are supposed to be able to see this and deduct it from your refund.

a reply to: CosmicAwakening

Back in the Clinton or Bush years they removed the Flag that we used to be able to see showing you owed and your refund would get grabbed.

Was a very useful tool as most people who file at the chains have the tax prep fee paid out of the refund.

I have had years where I don't get paid on $35,000 worth of work and I know of others where it's over $100,000.

Not a fun fun feeling.

a reply to: CosmicAwakening

Pretty sure you pay the IRS to do that.

Those places are just trying to make an easy buck. They're punching your numbers into QuickBooks or taxslayer just like you would have to- then forwarding the results to the IRS. They work with the FED (criminal organization that's taken control of our country) who keeps you in a database.

Loan sharks break legs- banks destroy lives. Shouldn't have borrowed from them.

a reply to: CosmicAwakening

Short answer: No.

Unlike the government (state and federal) tax preparation services have no legal right to access your financial background, beyond the access you grant them with regard to the preparation of your tax returns. That means that there is no legal way for a preparation service to know, in advance, whether you have unpaid child support, vehicle registration fees, or (unless you have specifically authorized via enrollment in a “piece of mind”-type of agreement) whether the IRS or your state tax agent has assessed additional taxes, penalties, or fees against you.

If you have used a particular service company for your prior year returns, they would be able to tell you if you owed taxes for those prior years; but only because the returns they prepared showed a balance due. The company would not be able to know whether you paid what you owed to the government, or if you still owed.

Hope that helps.

(I recently retired from more than 20 years of service with my state’s tax agency answering just this type of question as part of my job, and I currently work for a tax preparation service)

originally posted by: a325nt
a reply to: CosmicAwakening

Pretty sure you pay the IRS to do that.

Those places are just trying to make an easy buck. They're punching your numbers into QuickBooks or taxslayer just like you would have to- then forwarding the results to the IRS. They work with the FED (criminal organization that's taken control of our country) who keeps you in a database.

Loan sharks break legs- banks destroy lives. Shouldn't have borrowed from them.

Well I didn't borrow. I just had them do my taxes. I thought I had no debt but apparently I do. I am just trying to find out whether they knew I had this debt, but lied so that they would get their cut, or if they cannot see my debt when they enter the stuff in. If I knew I had the debt I wouldn't have had them do it.

a reply to: CosmicAwakening

Just curious, because I’ve heard this complaint many times in the past, (and I am definitely not trying to troll you!) how is it that you did not know about this unpaid debt?

All government agencies are required to notify taxpayers of liabilities, and potential liabilities via the USPS. Assuming that the government had your current, correct address (the IRS requires all taxpayers to notify the agency directly if there is ever a change of address; even if the change is temporary), so a notice would have been sent to you. Bear in mind that you had to contact the agency directly to change your address; for security purposes, neither the IRS nor your state agency would accept a change of address submitted on a post office change of address form.

I had H and R do my taxes one year. They do a crappy job. Use Turbo tax next time and do your own taxes. Its easy!

originally posted by: Bhadhidar
a reply to: CosmicAwakening

Short answer: No.

Unlike the government (state and federal) tax preparation services have no legal right to access your financial background, beyond the access you grant them with regard to the preparation of your tax returns. That means that there is no legal way for a preparation service to know, in advance, whether you have unpaid child support, vehicle registration fees, or (unless you have specifically authorized via enrollment in a “piece of mind”-type of agreement) whether the IRS or your state tax agent has assessed additional taxes, penalties, or fees against you.

If you have used a particular service company for your prior year returns, they would be able to tell you if you owed taxes for those prior years; but only because the returns they prepared showed a balance due. The company would not be able to know whether you paid what you owed to the government, or if you still owed.

Hope that helps.

(I recently retired from more than 20 years of service with my state’s tax agency answering just this type of question as part of my job, and I currently work for a tax preparation service)

Thanks! That is what I wanted to know. Thank you everyone else as well for your replies/insight.

originally posted by: visitedbythem
I had H and R do my taxes one year. They do a crappy job. Use Turbo tax next time and do your own taxes. Its easy!

I will.

originally posted by: Bhadhidar
a reply to: CosmicAwakening

Just curious, because I’ve heard this complaint many times in the past, (and I am definitely not trying to troll you!) how is it that you did not know about this unpaid debt?

All government agencies are required to notify taxpayers of liabilities, and potential liabilities via the USPS. Assuming that the government had your current, correct address (the IRS requires all taxpayers to notify the agency directly if there is ever a change of address; even if the change is temporary), so a notice would have been sent to you. Bear in mind that you had to contact the agency directly to change your address; for security purposes, neither the IRS nor your state agency would accept a change of address submitted on a post office change of address form.

It's a long story. I owe the DFAS, is a Military gov agency. I had a bunch of stuff stolen from me that was supposed to be turned in while I was in and they already took money from me on other taxes. This is from 2006! I could have sworn it was paid off long ago. I got the letter today explaining who took it.

a reply to: CosmicAwakening

DFAS, in my experience, is notoriously slow to report to other agencies.

If you haven’t already, I’d recommend that you contact them yourself to verify that there is still a balance due; especially since you believe that the amount owed since 2006 had already been paid.

It is not unheard of for an amount paid to a government agency fails to post to the correct account due to mis-coding, processing errors, workload problems, all sorts of things.

Thank you for your service, and good luck!

originally posted by: CosmicAwakening
Has anyone used one of these? My question is, aren't they supposed to find any debt you owe in their systems when they run your info? I was supposed to get a certain amount back but then I get a letter saying all of it has been taken to pay a debt. I had no idea it was on there and was told that these tax places are supposed to be able to see this and deduct it from your refund.

If you have a judgement against you the state can take the tax refund if the person you owe it to files with the state. I guess in some instances the Feds can do that too. Your tax preparer probably is not able to get that info unless you disclose it to them, bankruptcy can trigger that sometimes, but any company can take you to court to get it done. The interest and penalties and handling fees can make a small debt last a long time.

originally posted by: rickymouse

originally posted by: CosmicAwakening
Has anyone used one of these? My question is, aren't they supposed to find any debt you owe in their systems when they run your info? I was supposed to get a certain amount back but then I get a letter saying all of it has been taken to pay a debt. I had no idea it was on there and was told that these tax places are supposed to be able to see this and deduct it from your refund.

If you have a judgement against you the state can take the tax refund if the person you owe it to files with the state. I guess in some instances the Feds can do that too. Your tax preparer probably is not able to get that info unless you disclose it to them, bankruptcy can trigger that sometimes, but any company can take you to court to get it done. The interest and penalties and handling fees can make a small debt last a long time.

Yea I got my state back just not getting the federal.

originally posted by: CosmicAwakening

originally posted by: rickymouse

originally posted by: CosmicAwakening
Has anyone used one of these? My question is, aren't they supposed to find any debt you owe in their systems when they run your info? I was supposed to get a certain amount back but then I get a letter saying all of it has been taken to pay a debt. I had no idea it was on there and was told that these tax places are supposed to be able to see this and deduct it from your refund.

If you have a judgement against you the state can take the tax refund if the person you owe it to files with the state. I guess in some instances the Feds can do that too. Your tax preparer probably is not able to get that info unless you disclose it to them, bankruptcy can trigger that sometimes, but any company can take you to court to get it done. The interest and penalties and handling fees can make a small debt last a long time.

Yea I got my state back just not getting the federal.

That is weird, usually people get the Federal back and not the state. Was there a problem with not paying enough Federal taxes in one year or something because of a mistake on a tax form?