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January 12, 2005
A class action lawsuit claims H&R Block unfairly charged a fee for electronically filing customers' tax returns. Illinois resident Lorie Marshall claims she was victimized by the company's practice.
Circuit Judge Philip Kardis will hear motions in the case in his Grante City, Illinois, courtroom Jan. 20.
In her suit, Marshall claims the fee, which over time has ranged from $10 to more than $30, is illusory. It supposedly covers H&Block's costs of electronically filing customer's returns.
"H&R Block fails to inform customers that tax returns could be filed for free using an IRS program, or for the mere price of a stamp," according to the suit.
“Instead, H&R Block deceptively sells this free service under the guise that it is an exclusive and unique service offered by H&R Block," the complaint states. "H&R Block likewise attempts to increase profits by cramming charges for electronic filing fees onto the bills of unsuspecting clients.”
Marshall alleges the acts and omissions of H&R Block constitute breach of contract, unjust enrichment, breach of fiduciary, and violates the Illinois Consumer Fraud and Deceptive Business Act. She asks that she and others who paid the fee be reimbursed.
H&R Block has over 11,200 tax offices worldwide and reported $4.2 billion dollars in revenue in 2004.
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