Man claims tax refund is delayed due to mistake by tax preparation company

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An out-of-work Central Indiana man filed his taxes early, hoping to get money to care for his fiancée and their four kids. However, he said a mistake by his tax preparer might have led to his refund being held by the IRS.

“I have no money coming in and I have no idea when my refund will be coming in from them,” said Dennis Hatcher.

Instant Tax service on Rockville Road made a mistake, Hatcher said. He said he received a notice from the IRS that his return was on a 45-day hold, so he took his return to H&R Block to get it re-checked.

“The lady there found out that they didn’t file the substitute W-2. That income was nowhere on my refund that they’d initially done or anything,” Hatcher said.

Nancy Thomas from Instant Tax service at 5389 Rockville Rd said they created a W-2 based on pay stubs, since he didn’t’ have it yet from his employer.

“All of his W-2s were included,” Thomas said.

He was flagged by the IRS because more than ever, they’re going after people in his situation, Thomas said.

“It is people who are saying ‘Hey, I supported four people on less than $10,000 year,’” Thomas said.

Due to a loss of work, Hatcher was in that situation this year.

“People need to realize that when they’re not making a lot of money and they’re claiming a lot of dependents the IRS is crackin’ it, man and they are and people need to know that,” Thomas said.

A check of the Better Business Bureau report for this Instant Tax location would have revealed potential concerns.

They have an “F” rating and unresolved complaints, said Central Indiana’s BBB CEO Bill Thomas.

“Really take the time to understand that you’re going to be working with somebody that you can trust that is doing right by you in terms of filling out the information properly. We’re dealing with the government here,” Thomas said. “You don’t want to have some sort of record of fraud or misrepresentation of your information.”

When you’re filing your taxes, it is imperative that you look through your own return and check it over, even if someone else prepares it, Thomas said.

“At the end of the day, it is your signature and if there is something wrong or there is interest or penalties to be paid, it is going to be your responsibility as the individual not the person who filed the taxes for you,” Thomas said.

Hatcher believes Instant Tax didn’t back up the work that they were paid to complete. Now, his family is left wondering if and when their return will show up.

“I’m a family man and I didn’t want to see this happen to someone else out there that desperately, was in dire need of that money,” Hatcher said.

You may have heard of the lawsuit connected to several Instant Tax Service locations throughout Central Indiana and the Midwest. Thomas said this location on Rockville Road is not connected to that lawsuit.

If you want to check out your tax preparer with the BBB before you file, click here.

For more on the lawsuit connected to some Instant Tax Service locations, visit this website.

5 comments

  • Tax Preparer

    Instant was suppose to be shutdown and needs to be. It is completely corrupt. One of my clients were charged $500 dollars last year from them! He thought it was because he was getting back $5000. Your refund should never reflect how much you are charged, only how complicated the return is. I am a tax preparer for a local company, Fiscal Tax Co, and we see this a lot from places like Instant Tax. Clients are ripped off and the preparers claim phony refunds (like the education credits) for high fees. Then they come to me in the summer because the IRS wants $1500 back. If you need or want a preparer to rely on year round, please know who you are going to.

    • Gat273

      "Instant was suppose to be shutdown and needs to be."

      Places like this stay in business for one reason, the word on the street is they "can get you paid." Folks are willing to pay high fees because they're promised fat refund checks.

      Sometimes you get over, some times you get cooked up in the sauce like this guy. I wonder why he chose such a place to get his taxes done?

  • anon

    I know there are places that will file taxes based on a person's last check stub, but this case shows that it's best to wait for your W-2's. The reason for this is that some employers calculate pay through Dec. 31, so if it fell in the middle of the pay period, the income on the W-2 may be different than on the check stub. Also, with the new tax laws, employers must report health insurance and other benefits paid by the employer as income that needs reported, which may not show up accurately on a person's pay stub; because this is such a new law, if he filed before getting a W-2, how would the individual know what's on line 12 with all its lettered sub-lines? We never had that until now. The preparer should've known better; wonder if that's where the error is? I e-filed my own, waited for my W-2's; I filed 2/3 & got my refund on 2/26, & I was one of those with educational credits that IRS waited until 2/14 to process. In the past, I used H&R Block with no problems. It pays to use a company with a good reputation.

  • Collens

    I know 3 different families going through something similar. 2 used H&R Block-The other was Liberty Tax. The employee at Liberty was immediately fired–It seemed that the 'mistake' was intentional.

  • Michael W. Perkins

    As a Licensed Enrolled Agent, I can tell you it is completely illegal to file a tax return without a W-2, if you have not waited the proper length of time or followed the correct procedures for not receiving a W-2 form. If it's too good to be true it probably is. Look for a reputable firm to preparer your tax return.

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