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There is a SERIOUS error in this program
on February 4, 2009
Taxcut is easy to use and this is the third year in a row that I'm going with it. HOWEVER, there is a serious calculation error in the program that is either going to result in a) thousands of IRS audits for Taxcut users, or b) a class-action lawsuit based on Taxcut's "accuracy guarantee."
I called Taxcut customer service, and while the operator was friendly, neither she nor her manager seemed much interested in fixing the problem. So hopefully someone will read about it here and follow up on it.
In the credits section of the federal return, Taxcut is granting tax credits for hybrid and alternative vehicles that no longer are allowed by the IRS. The tax credits began to phase out in late 2006, but Taxcut thinks they began to phase out in late 2007. That's a big problem. I bought a 2008 Toyota Prius on March 20, 2008, and so I selected the date range October 1, 2007 through March 31, 2008. TaxCut then gave me a $1,575 tax credit for the purchase. BUT, the date range for that $1,575 tax credit is ACTUALLY October 1, 2006 through March 31, 2007! Buying the Prius in March of 2008 should actually give me a $0 tax credit according to the IRS. Checking the other date ranges, I confirmed that TaxCut gets them all wrong, too.
Needless to say, given the unprecedented amount of Americans who bought hybrids during the gas crisis in the summer of 2008, TaxCut is going to be telling a lot of people they are going to be getting a sizable tax credit from the IRS for those purchases.
It was surely an honest mistake on the programmers' part, but for H&R Block's sake, I hope they fix this error and quickly.