TECHNOLOGY has made it possible for taxpayers to save money on tax preparation, and most tax software programs do an excellent job of highlighting deductions and credits. If your tax return is straightforward, you may even be eligible to prepare and file your tax return for free. But before you start plugging in your numbers, scrutinize the terms of the program.
In January, the Federal Trade Commission announced it had reached a settlement with H&R Block that requires the tax-preparation giant to change the way it markets tax software. The FTC alleged that H&R Blockâs promotions failed to disclose that its free version was available only to taxpayers with simple returns. The FTC directed H&R Block to revise the way it markets its free software and make it easier for users to downgrade to a less expensive product once they started their returns. The company also agreed to pay a fine of $7 million.
In a statement, H&R Block said it has already implemented many of the changes required by the settlement or is in the process of implementing them.
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