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Liberty Tax Service

Liberty Tax Service review: overcharge & no fee disclosure 26

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9:39 pm EST
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I was quoted a price of $89 for my tax preparation before any paperwork was started and was told that I didn't have to pay until my refund arrived. My taxes were prepared on January 27, 2010 and my refund was supposed to be in the Liberty Tax office by February 5, 2010. There was no mention of any other fees durring my business transaction. When my tax preparation was done, I turned to leave and I was call over to the desk again and was given 10 five-dollar bills. I asked what the $50 was for and was told it was a promotion so that I would tell my friends and family about Liberty Tax. It was made very clear by the representative that this $50 was not, in any way, related to my refund or fees. It was free and clear. On the 19th of February I received a statement from Republic Bank showing that $289 was deducted for preparation fees, another $20 for transmitter fees, and another $29.95 for refund administration fees. A total of $249.95 over what I was quoted initially. A person who identified herself as Wendy Cohen, the district manager said she would send me a check for $50 to resolve the issue. That was $199.95 short of what was taken from my check, unauthorized. I declined the $50 check and requested the full amount. I was told that there was nothing she (Wendy) could do beyond that. Upon calling Liberty Tax headquarters, I learned that Wendy Cohen is not the district manager, she is only the manager. I feel decieved by Liberty Tax and its agents and I feel that I was intentionally mislead and robbed of money due to me from the government. I would like the full amount beyond the $89 I was quoted for preparation fees, the full amount being $249.95.

Update by ronald vincent
Apr 03, 2010 2:47 am EDT

What happens is this, Liberty Tax doesn't disclose their bank fees when your taxes are prepared. There's a form that they have you sign towards the end of the service transaction that reads "RAL IS A LOAN" across it & there is a list of items for you to check off. The items are options for a "Refund Anticipation Loan", options to go through Liberty's bank (Republic Bank) and pay 49.95 in fees for not paying up front for the tax preparation fees. When you ask about the form before signing, they tell you its just proceedure and you don't have to check off any boxes if you don't want these options but you do have to sign it. THE OPTION BOXES ARE MARKED IN WITH AN X WHEN YOU LEAVE ! ITS LIKKE SIGNING A BLANK CHECK ! They quote you a price on the tax preparation fee and you sign for what you think it is but THE FEE DISCLOSURE FORM IS ALTERED WHEN YOU LEAVE ! Instead of the $ 89 I signed to, it became $289. See the gap between the $ sign and the 89? It was filled in with a 2 and MAGIC! $ 89 becomes $289 and the form is signed already. Its not easy to disprove the form because you're not given a reciept or copy of forms until you pick up your income tax refund check. I asked for a reciept and copy of forms but they tell you they can't give you one there and then. LIBERTY TAX IS A WELL THOUGHT OUT FRAUDULENT SCHEME. STAY AWAY! What happens is this, Liberty Tax doesn't disclose their bank fees when your taxes are prepared. There's a form that they have you sign towards the end of the service transaction that reads "RAL IS A LOAN" across it & there is a list of items for you to check off. The items are options for a "Refund Anticipation Loan", options to go through Liberty's bank (Republic Bank) and pay 49.95 in fees for not paying up front for the tax preparation fees. When you ask about the form before signing, they tell you its just proceedure and you don't have to check off any boxes if you don't want these options but you do have to sign it. THE OPTION BOXES ARE MARKED IN WITH AN X WHEN YOU LEAVE ! ITS LIKKE SIGNING A BLANK CHECK ! They quote you a price on the tax preparation fee and you sign for what you think it is but THE FEE DISCLOSURE FORM IS ALTERED WHEN YOU LEAVE ! Instead of the $ 89 I signed to, it became $289. See the gap between the $ sign and the 89? It was filled in with a 2 and MAGIC! $ 89 becomes $289 and the form is signed already. Its not easy to disprove the form because you're not given a reciept or copy of forms until you pick up your income tax refund check. I asked for a reciept and copy of forms but they tell you they can't give you one there and then. LIBERTY TAX IS A WELL THOUGHT OUT FRAUDULENT SCHEME. STAY AWAY!

Resolved

The complaint has been investigated and resolved to the customer’s satisfaction.

26 comments
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mrs lee
Bessemer, US
Mar 09, 2010 2:09 pm EST

i also used liberty tax services this year(2010), i was stunned when i went over my tax papers to learn that liberty tax charged me $413.95 for doing my taxes i spoke with the representative that prepared my taxes and she told me also about all kinds of hidden fees and bank fees and also told me she'll prepare my taxes for free next year(lol)as if im going back...well this isnt the last that liberty tax has heard of me, someone has to find out how a company can get away with such overcharge.

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Annette2
Snellville, US
Mar 11, 2010 11:39 am EST

Try a charge of $840.00

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Annette2
Snellville, US
Mar 11, 2010 11:50 am EST

In GA ...an enormous fee with no breakdown or explanation of how they came up with this figure.

There was no other explanation to prove they are not charging a fee based on the amount of your return.

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velle08
1234 wilis ave, US
Mar 13, 2010 3:03 pm EST

yes we wll need to get together and really sue liberty tax service they are making millions offof people who dont even have much.they charged me and my husband over 1500 i have already filed my case in court. we cant let them get away with this, email me at velle0807@yahoo to file a civil case against this company to shut them down plssss!

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Judith Blackwell
US
May 25, 2018 1:23 pm EDT
Replying to comment of velle08

My taxes were done on Feb 2 and I got the, $50.
The preparer said they took their fee of 549. But my refund is $6371. IRS sent my refund. It was mailed to them first. Then deposited into my account. I never got my full $6371. $589.95 is missing. Now the place is closed. And voicemails have been full for 3 days. I live in Dorchester

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Tito Amin
US
Mar 15, 2010 1:12 pm EDT

I had the same thing in Torrence Ca,

They are scam.

Let's do something.

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StephanieP1981
Virginia Beach, US
Mar 20, 2010 4:14 pm EDT

I currently live in Virginia Beach, VA and decided to try Liberty Tax after getting frustrated doing my taxes on my own online. The individual who prepared my taxes did not inform me of any rates, and the only thing he filed were my W-2's, and Student Loans. It took all of 15 min and when he was finished he said I owed him $350.00. I thought he was joking and asked him what the fees were for. He blamed it on the economy and stated, "the price of everything is going up." I walked out of there frustrated beyond belief and feeling ripped off. I work full time and am also a graduate student and cannot afford to be throwing money around. Especially when one can go online and get taxes done for free. I reported this to the Better Business Bureau as I feel this is my only option. I feel it was beyond unethical for him not to disclose their rates before the session and to charge $350.00 for 15 min of simple work.
I do not know what you are planning to do about this, however if you are putting together a list of complaints feel free to contact me because this is ridicious.

Thanks, Stephanie

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RAVING FAN
ringold, US
Apr 02, 2010 9:36 pm EDT

befor you get all sue happy please check your paperwork for the truth in lending and ALL the paperwork YOU signed.. i work for liberty and i do make sure that i go over ALL costs and break downs of fees (we charge by the form) so the more forms you use the more it is going to cost..also remember it was free for you to sit in that chair and get an estimate..it was all free...free for you to take your w-2's 1099's and your SSA and leave...until you signed the paperwork...you may think it was unethical for your prep not to disclose the price of $350 but i am thinkin you were more interested in getting that huge refund that i would guess would make up 1/3 of your yearly wage and how fast you could get the check..ohh and then look for a check cashing company to cash it for even more then you paid to get the check...so my question is what were you thinking as you were signing all the paperwork? obviously not how much taxpayers money was being spent so you could get thousands of dollars back...that you are told you are entitled to for having dependents... while other T/P's oew money cuz they made too much or had no dependents so you can enjoy a late christmas...yes professional tax prep fees are high..do it free on the internet. or go to the irs and file for free and pray they do it right..i am going to mexico..heard there might be work there

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Caroline Cunningham All Rights Reserved
US
Mar 14, 2017 9:33 am EDT
Replying to comment of RAVING FAN

Mexico, that's great! I have extended family members in all parts. Good luck. Oh and yes I do have a hard copy, that says a fee of $0.00 will be assessed. Please correct this because $550.00 dollars was charged . I did not receive a R.A.L. I had funds deposited into my personal bank account via direct deposit . What have you now?

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Liberty Tax Customer Care
Virginia Beach, US
Apr 12, 2010 1:01 pm EDT
Verified customer This complaint was posted by a verified customer. Learn more

We appreciate you reaching out to us via complaintsboard.com. Liberty Tax Service makes customer service our priority which is why we offer a satisfaction guarantee. Please email us directly at customercare@libtax.com and we'll be happy to investigate your complaint. In your email please include your name, your phone number, and the office location (street, city and state). We will then be able to contact you directly to try and resolve this matter.

Kind regards,
Liberty Tax Customer Care

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cgibbens123
Venice, US
Apr 06, 2011 9:46 pm EDT
Verified customer This complaint was posted by a verified customer. Learn more

I went there yesterday and was charged $600 to sit there for 3 hours why they tried to figure out how to do my taxes. I felt that they really did not know how to do my taxes as stock options were involved. I paid half of this last year at H&R block who did my taxes with stock options. I was told that the extra form caused my taxe return cost to be so high. They did not give me a copy of my contract that I signed and the initial price that I saw was no where near what the bill came to be. I could not see the guys screen, but it felt like he was just coming up with some price.

STAY Away

I plan on posting on every site to make sure people do not go here

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cgibbens123
Venice, US
Apr 07, 2011 6:11 pm EDT
Verified customer This complaint was posted by a verified customer. Learn more

File a complaint with

Internal Revenue Service
Office of Professional Responsibility
Attn: SE:OPR – Room 7238/IR
1111 Constitution Avenue, N.W.
Washington, DC 20224

Or by facsimile at [protected]

and the BBB about this location I have filed several complaints about them

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1hangon
Bountiful, US
Apr 11, 2011 3:03 am EDT

I trusted Liberty Tax, gave them all the information (did not hide anything), they charged me plenty of $$$ for nothing.
Here is the complaint...I GOT AUDITED FROM THE IRS FROM THERE NEGLIGENCE.
The IRS is crawling all over my my retail business, including my personal business.
You would be better off to make up numbers and send in your return yourself.
Liberty Tax made up there own figures that did not add up or make sense to the IRS and to my CPA.
There mistakes are costing me thousands for hiring a "real" CPA and a Lawyer.
They do not represent any client in an audit..YOU ARE ON YOUR OWN..
I WANT TO SUE THEM FOR DAMAGES...(Gross) Negligence or Malpractice...
Let's do a class action law suit..I am in...
WARNING: If you enjoy being audited by the IRS then allow Liberty Tax to prepare your returns.

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cgibbens123
Venice, US
Apr 11, 2011 3:30 am EDT
Verified customer This complaint was posted by a verified customer. Learn more

When I was there a guy came in pissed off because they did not send his paperwork to the IRS and he was being audited. The lady at the location on Pico told him that there as nothing that they could do and he should call the manager at the location. I should have gotten up and walk out at that point. I am all for a class action law suit. Here is a class action suite against them

http://www.legalclassactions.com/blog/2011/01/05/liberty-tax-service-faces-class-action-lawsuit/

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cgibbens123
Venice, US
Apr 15, 2011 6:35 am EDT
Verified customer This complaint was posted by a verified customer. Learn more

Contact the BBB about them and file a complaint

Freda Ware
Conciliations Coordinator
Better Business Bureau of Greater Hampton Roads
586 Virginian Drive
Norfolk, VA 23505
Phone [protected]
Fax [protected]

Also you might want to go to this lawyer

http://www.legalclassactions.com/blog/2011/01/05/liberty-tax-service-faces-class-action-lawsuit/

www.BBB.org

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jwalt0421
US
Jan 06, 2012 6:36 pm EST

H&R Block does not only a Free Second Look at your tax returns for the past 3 years, regardless of where they were done, but also they have audit assistance at year-round locations regardless of where you had the taxes done. If you chose to file the current year with them, they also have a guarantee that they will pay any penalties and interest should the IRS disagree with anything they filed on your behalf.

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R.Boles
US
Jan 21, 2012 7:44 pm EST
Verified customer This complaint was posted by a verified customer. Learn more

I filed with Liberty tax service about a week ago, paid the $296 preparation fee which I knew up front would be expensive and another $69 to have the RAL within 24-48 hours "once the IRS approves the filing." Well, the IRS supposedly approved on the 17th, I have yet to see the RAL or get any explanation except "its a glitch in the bank processing." Not only was I encountered with poor customer service to include lack of responsiveness, no anticipated new date and/or compensation via return of at least the $69 fee, I have been given the run around and told "if you push the bank they will just take longer." I usually do my own taxes, b/c I knew these tax preparation companies are costly, but this is the first year I decided to do the RAL (rapid anticipation loan). It is FALSE ADVERTISEMENT! Liberty tax uses these cons just to solicit the poor and then gives you the run around when they can't deliver. I have since called the corporate office in which they report they will contact me within 24 hours to resolve my complaint and refund my tax preparation fees. I am highly disappointed and will NEVER use this company again.

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Jennifer Fletcher
sarnia, CA
Dec 18, 2012 3:44 pm EST
Verified customer This complaint was posted by a verified customer. Learn more

So here is my issues I have used them for never really had a problem as far as I could see. Until now or as of our taxes of 2011. When my bf or common law partner as of July 2011, went in there last year to file common law they told us we did not have to for we were not together for a year or so advised us to wait till this year. Well now that we have filed common law they they are going back to 2010 and making me pay back 6, 600 and some odd dollars for baby bonus all because we did not file as common law last, on the advise of liberty tax. Never again will I go there.

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Sharima
Bronx, US
Feb 21, 2013 1:09 am EST

THEY GOT ME FOR $811...IN NYC... WE CAN'T LET THEM GET AWAY... THEY SAID $350 WAS THE FEE...

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Whatdoido
Detr, US
Apr 08, 2013 9:46 pm EDT
Verified customer This complaint was posted by a verified customer. Learn more

I did my taxes with liberty taxes they took my state check of 545$ for preperation fees the lady pricila brown filled my taxes wrong then had the nerve to argue with me like im wrong then on top of that im being audited becuase she didnt do my return wright and saying I cannot recieve my 545$ back ? What do I do?

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mistydawn33
hagerstown, US
May 24, 2013 1:57 pm EDT

I filed with liberty for years always charging me crazy rates $400 or more just to prepare my taxes.Now i have been auited saying i claimed too much on EIC .That was here mess up and mistake now i owe over $1500.00 FOR THERE MISTAKE

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JMMoore73
Augusta, US
Jan 10, 2014 6:16 am EST

I am so sorry to hear of all of the awful responses to Liberty Tax. I first want to let everyone know that Liberty Tax Offices are not owned by one particular person. It is a franchise. Unfortunately, you will get businesses and business owners who don't care about anything but making their pockets bigger at any and everyone's expense. The bad thing about that is that it ruins it for the honest owners of Liberty Tax Service. The old saying is, "One Bad Apple Spoils The Bunch!" I am truly sorry for all of the bad experiences that I have read and I agree, if you are being ripped off or treated that way then by all means DO SOMETHING about it but please write negative reviews about the particular STORE you visited and not all Liberty Tax Offices because they are not all like that. I live in Georgia and the experience there is TOTALLY opposite! The tax prepares go over EVERYTHING with me, show me their screen and show me what the figures are and how they got them. They go through every form with me and make sure that I understand everything before I sign it. My fees are discussed with me (I am charged by form) BEFORE my tax return is even submitted so you see if I see that it is going to cost me too much money, I can say NO, I don't want to get my taxes done here and they don't charge me anything and I AM FREE TO GO. No strings attached. I have copies of EVERYTHING given to me before I leave and if I ever need copies or have questions, they are open year round not just during tax season (1 day a week after June) and can call also and get a return call back. I can get a copy of my paperwork free of charge at anytime. Also for those who have been audited, the Liberty Tax office here where I live stood right by my sister in law when she got audited by the IRS. They did just what they promised. She was randomly picked by the IRS to be audited to prove her income and expenses (she owns a small business). Liberty Tax was there with here handling all correspondence and keeping her informed of everything that was going on and also having an agent right there with her during the hearing and she was cleared at her audit, owed the IRS NOTHING and Liberty Tax didn't charge her a dime at ALL! So, again, I am so sorry for all of your bad experiences, but there are some offices in other locations that are honest and do care about their clients.

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Luna0314
US
Feb 24, 2017 7:19 pm EST
Verified customer This complaint was posted by a verified customer. Learn more
Replying to comment of JMMoore73

You as company are doing your job good. You as the rest just care for the piece you are getting from those excessive charges. Your franchises are putting on the tax payers the cost of the advance and you have not the capability of controlling it or simply do not care.

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rjoe65
Little Elm, US
Jan 19, 2014 10:12 pm EST
Verified customer This complaint was posted by a verified customer. Learn more

I WORKED FOR LIBERTY LAST SEASON PT AND DID SOME RETURNS. YOU ARE PROMISED A BONUS IF YOU MAKE IT TO THE END OF TAX SEASON. WELL I MADE IT TWO WEEKS BEFORE APRIL 15 AND THEY REDUCED THEN ELIMINATED ME FROM THE SCHEDULE TO AVOID PAYING ME A BONUS. THIS YEAR THEY OPENED ANOTHER LOCAL FRANCHISE. NEVER WORK FOR THEM. I WOULD RATHER PICK UP TRASH ON THE FREEWAY. SCAMMERS TO THE LIMIT. OH YEAH THE BOOKS FOR TAX CLASS 150 DOLLARS. NEVER AGAIN.

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Reviewer62483
Feb 13, 2016 8:30 am EST

We qualified for the 750 dollar advance. They did not tell us that they would be charging us almost 350 dollars to do this. We already had to pay in almost 1000 for not having insurance for the whole year and they take advantage of us about this. I will be reporting it to the better business Bureau. I'm very unhappy with this year's tax companies.

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Reviewer55543
Feb 19, 2016 12:33 am EST

I did my tax with micheal at liberty tax, after we did my taxes he explains that I need to pay 365 dollars plus 49.95, that I understand for doing my tax fee. But he told me after his office recieve my tax refund, I have to pay 365 plus 49.95 again. I told him that and he's like he don't know anything about it. I swear I'm not filing with liberty again.

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  1. Liberty Tax Service Contacts

  2. Liberty Tax Service phone numbers
    +1 (800) 790-3863
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  3. Liberty Tax Service emails
  4. Liberty Tax Service address
    1716 Corporate Landing Pkwy, Virginia Beach, Texas, 23454-5681, United States
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Liberty Tax Service is ranked 9 among 102 companies in the Tax Services category