Peace of Mind® Extended Service Plan Terms, Conditions and Limitations
The Peace of Mind® Extended Service Plan (the "Plan") offered by HRB Tax Group, Inc. ("Block") is available only at participating Block offices at the time your return is completed, but no later than October 31 of the year of the return due date. The Plan is separate from, and in addition to, The H&R Block Guarantee that pays penalty and interest resulting from an error in tax preparation.
The Plan is effective when paid for and signed by you, and cannot be transferred by you to others. Subject to the exceptions noted below, the Plan provides you with the following benefits with respect to the individual federal and any individual state or local returns prepared and paid for on the date of this agreement.
The Plan applies only to filed and accepted original individual U.S. resident tax returns prepared by Block for the year of the return and for which the balance due to Block has been paid. You represent to us that you have reviewed the items on your return and that items or issues on such returns have not been, or are not currently, under examination by tax authorities as of the date of purchase indicated on your receipt that specifies the total purchase price for the Plan and which is incorporated herein.
If your return is audited, Block will provide you with a qualified person (but not an attorney) to represent you before the tax authority should such tax authority question the accuracy of your return.
If you owe additional taxes as a result of an error in tax preparation and the error is discovered by you, your representative or a tax authority, during the period of three years from the filing deadlines for such returns, not including extensions, Block will pay you for such taxes up to a cumulative total of $5,500 for all such returns, subject to the terms and conditions detailed below. Such three year limitation applies to your federal and state returns, including returns for those states in which the "open" period to review returns is greater than three years. In some cases, the correction of a specific error will involve changes on multiple returns, including state or local tax returns, which may result in an overpayment on one return and a balance due on another. In such cases, the overpayment and balance due will be netted in determining the amount Block will pay for additional taxes owed as a result of correction of the error. Block assumes no responsibility for payment of additional taxes to a tax authority. You are responsible for providing payment of additional taxes to the tax authority.
Before such payment, you must:
(a) notify Block of any government notice regarding such taxes within 60 days from the date of the initial notice;
(b) promptly provide Block with copies of such notices and other documents relating to or substantiating such additional taxes.
(c) provide Block with reasonable notice of and allow Block to attend an audit with you or as your representative with Power of Attorney;
(d) allow Block at its sole discretion and expense, to challenge the determination that additional taxes and penalties and interest are owed; and
(e) provide Block with your receipt as proof of your purchase of the Plan.
The Plan does not apply to:
(a) amended returns (1040-X) unless the H&R Block error at issue is a result from the error in the original tax preparation; 1040-NR;
Claim Process - Frequently Asked Questions:
(b)non-individual returns such as employment (including taxes assessed on Form 4137 for income other than allocated tips), corporate, state and local small business, occupation tax, partnership, trust, estate, and gift tax returns;
(c) any returns used to file for tax credits or rebates such as property tax, homestead or renters credits that are not filed in conjunction with a federal, state or local return;
(d) the calculation of estimated tax payment vouchers, additional taxes owed as a result of an erroneous refund of your estimated tax payments by the IRS or a state or local taxing authority;
(e) any return for which, as of the date of such purchase, you have knowledge of additional taxes owed;
(f) any return for which you have received on or before the date of such purchase any notification from any tax authority of examination or audit;
(g) returns for which errors have been identified by Block prior to an assessment of additional taxes by tax authorities and can be corrected by Block within 30 days from Block's preparation of the return;
(h) any return relating to previous years;
(i) additional taxes, penalties and interest that are assessed as the result of (i) incorrect, incomplete, false or misleading information that you have given to Block in connection with its preparation of a return; (ii) the government's inability to obtain from you sufficient records to support deductions, credits and other items on your return; (iii) your failure to timely pay the taxes as shown to be due on your return; and (iv) additional taxes assessed as the result of your desire to take a position on your return that challenges current IRS or judicial tax law guidelines or interpretation. In the event you receive a refund of any assessment that Block has paid you under the Plan, you must reimburse Block for the amount of such refund; and
(j) assessments of additional taxes that occur after three years from the filing deadline for the return, not including extensions.
I received an inquiry from a tax authority. What do I do next?
- Provide your tax authority notice and any related documents to your local H&R Block office within 60 days from the date of the initial notice. If you don't contact us within 60 days, your claim may be denied.
- Your local H&R Block office will investigate the issue, providing full audit representation if necessary. (Please note: while receipts are not required for tax return preparation, you must make these documents available to the tax authority in the event they are requested.)
- Once the final determination has been made with the tax authority, and if additional taxes are owed due to H&R Block's error, the office will submit your claim to the Peace of Mind Claims Department where it will be reviewed and processed within four to six weeks.
- If your claim is approved, you will receive a check.
- If your claim is not approved, you will receive a letter explaining the reason for the denial. If you disagree with the denial, you may dispute it by calling 1-800-HRBLOCK to request a review of the determination. Your claim will usually be reviewed within two to five days. You will receive the final determination in writing.
- If penalties and interest are due in addition to taxes, that payment may be processed and paid separately under the conditions of The H&R Block Guarantee.
What are the tax implications of receiving a Peace of Mind payment?
Federal law states that if your tax liability is paid by someone else, the amount of that payment becomes taxable income to you. Therefore, you will need to include your Peace of Mind payment on your tax return next year. If the payment is $600 or more, you will receive form 1099-MISC from H&R Block next year. H&R Block is not responsible for the payment of any taxes you may owe on such income.
Who do I contact if I have more questions?
You should contact the H&R Block office where your claim was originally filed.
You may also speak to a client service representative by calling 1-800-HRBLOCK.
For New Hampshire Residents ONLY:In the event you do not receive satisfaction under this Peace of Mind contract, you may contact the New Hampshire Insurance Department, Consumer Division, which provides oversight for consumer guaranty contracts, at 21 South Fruit Street, Suite 14, Concord NH 03301 or 603-271-2261. This number is only for clients who purchased Peace of Mind.
ARBITRATION IF A DISPUTE ARISES BETWEEN YOU AND H&R Block
If a dispute arises between you and H&R Block, including any dispute that relates to POM, the dispute shall be settled by binding arbitration unless you opt-out of this arbitration provision. The arbitration procedures, including the procedures for you to opt- out of arbitration, are set forth in the Client Service Agreement between you and Block, in the section titled "Arbitration if a Dispute Arises Between You and H&R Block." The "Arbitration if a Dispute Arises Between You and H&R Block" section hereby is incorporated by reference.
NOTE: This arbitration provision shall not apply to purchasers of the Peace of Mind product who are within the scope of the classes proposed in Lorie J. Marshall et al. v. H&R Block Tax Services, Inc., pending as Case No. 08-591-MJR in the United States District Court for the Southern District of Illinois; and Desiri Soliz v. H&R Block, Inc., et al., pending as Case No. 03-032-D in Kleberg County, Texas, as to claims that are the subject matter of these cases.