Complaint / review text:
This involves my 2007 taxes prepared by Jackson Hewitt. I retired this year so I took all my information and had them prepare taxes. On correspondence dated March 16,2009, I received a notice from the Federal Government that I owed an additional $6,720, plus penalties of $1,344 and interest of $488, for a total of $8,512. Also, on my state taxes, I will owe another $840.00. All I have now is social security as I used funds last year to pay off my home and my auto.
I immediately took a copy of the tax return in to Jackson Hewitt. They kept it for a few days, and then indicated that I had rolled over $20,000 and that was where the error was, and I was responsible for the $8,512. I told the gentleman, a Mr. James, that I did not roll over any funds. Getting no satisfaction, I went to the Internal Revenue Office on April 15,2009 to have them take a look and see where the error was. He found it immediately on my 1099R form box 7 - the Distribution Code is 7, which is normal distribution; they coded on my return a G, which is a direct rollover, causing the $20,000 difference in income and resulting in my having to pay $8,512. The IRS indicated that was an error on the part of Jackson Hewitt - just not looking at the materials supplied properly. I believe that they should satisfy this amount due, not me.