Peace of Mind® Terms and Conditions

Peace of Mind^® Extended Service Plan Terms, Conditions and Limitations

The Peace of Mind^® Extended Service Plan (the "Plan") offered by HRB Tax Group, Inc. ("Block") is available only at participating Block offices at the time your return is completed, but no later than Oct. 31 of the year of the return due date. The Plan is separate from, and in addition to, the H&R Block Guarantee that pays penalty and interest resulting from an error in tax preparation.

The Plan is effective when paid for and signed by you and, cannot be transferred by you to others. Subject to the exceptions noted below, the Plan provides you with the following benefits with respect to the individual federal and any individual state or local returns prepared and paid for on the date of this agreement.

The Plan applies only to filed and accepted original individual U.S. resident tax returns prepared by Block for the year of the return and for which the balance due to Block has been paid. You represent to us that you have reviewed the items on your return and that items or issues on such returns have not been, or are not currently, under examination by tax authorities as of the date of purchase indicated on your receipt that specifies the total purchase price for the Plan and which is incorporated herein.

If your return is audited, Block will provide you with a qualified person (but not an attorney) to represent you before the tax authority should such tax authority question the accuracy of your return.

If you owe additional taxes as a result of an error in tax preparation and the error is discovered by you, your representative or a tax authority, during the period of 3 years from the filing deadlines for such returns, not including extensions, Block will pay you for such taxes up to a cumulative total of $5,000 for all such returns, subject to the terns and conditions detailed below. Such 3 year limitation applies to your federal and state returns, including returns for those states in which the "open" period to review returns is greater than 3 years. In some cases, the correction of a specific error will involve changes on multiple returns, including State or Local tax returns, which may result in an overpayment on one return and a balance due on another. In such cases, the overpayment and balance due will be netted in determining the amount Block will pay for additional taxes owed as a result of correction of the error. Block assumes no responsibility for payment of additional taxes to a tax authority. You are responsible for providing payment of additional taxes to the tax authority.

Before such payment, you must:

(a) notify Block of any government notice regarding such taxes within 60 days from the date of such notice;
(b) promptly provide Block with copies of such notices and other documents relating to or substantiating such additional taxes;
(c) provide Block with reasonable notice of and allow Block to attend an audit with you or as your representative with Power of Attorney;
(d) allow Block at its sole discretion and expense, to challenge the determination that additional taxes and penalties and interest are owed; and
(e) provide Block with your receipt as proof of your purchase of the Plan.

The Plan does not apply to:

(a) amended returns; 1040-NR;
(b) non-individual returns such as employment (including taxes assessed on Form 4137 for income other than allocated tips), corporate, state and local small business, occupation tax, partnership, trust, estate, and gift tax returns;
(c) any returns used to file for tax credits or rebates such as property tax, homestead or renters credits that are not filed in conjunction with a federal, state or local return;
(d) the calculation of estimated tax payment vouchers, additional taxes owed as a result of an erroneous refund of your estimated tax payments by the IRS or a State or Local taxing authority;
(e) any return for which, as of the date of such purchase, you have knowledge of additional taxes owed;
(f) any return for which you have received on or before the date of such purchase any notification from any tax authority of examination or audit;
(g) returns for which errors have been identified by Block prior to an assessment of additional taxes by tax authorities and can be corrected by Block within 30 days from Block's preparation of the return;
(h) any return relating to previous years;
(i) additional taxes, penalties and interest that are assessed as the result of (i) incorrect, incomplete, false or misleading information that you have given to Block in connection with its preparation of a return; (ii) the government’s inability to obtain from you sufficient records to support deductions, credits and other items on your return; (iii) your failure to timely pay the taxes as shown to be due on your return; and (iv) additional taxes assessed as the result of your desire to take a position on your return that challenges current IRS or judicial tax law guidelines or interpretation. In the event you receive a refund of any assessment that Block has paid you under the Plan, you must reimburse Block for the amount of such refund; and
(j) assessments of additional taxes that occur after 3 years from the filing deadline for the return, not including extensions.

Claim Process Frequently Asked Questions

I received an inquiry from a tax authority. What do I do next?
Provide your tax authority notice and any related documents to your local H&R Block office within 60 days from the date of the initial notice. (Please note: While receipts are not required for tax return preparation, you must make these documents available to the IRS in the event of an audit or exam.) Your local H&R Block office will file a claim with the Peace of Mind Claims Department. The claim will be reviewed and processed. If the claim is approved, you will receive a check. If the claim is not approved, you will receive a letter explaining the reason for the denial.

How long will it take to process my claim?
Once all required documentation and information have been provided, your claim will be resolved within 4 to 6 weeks.

What are the tax implications of receiving a Peace of Mind payment?
Federal law states that if your tax liability is paid by someone else, the amount of that payment becomes taxable income to you. Therefore, you will need to include your Peace of Mind payment on your tax return next year. If the payment is $600 or more you will receive form 1099-MISC from H&R Block next year. H&R Block is not responsible for the payment of any taxes you may owe on such income.

What about penalty and interest payments?
Payment of any penalty and interest assessed on the additional tax due may be processed separately under the conditions of The H&R Block Guarantee.

Who do I contact if I have more questions?
You should contact the H&R Block office where your claim was originally filed.
You may also speak to a client service representative by calling 1-800-HRBLOCK.

What if my claim is denied?
You may dispute the denial by calling 1-800-HRBlock to request a review of the determination. Your claim will usually be reviewed within 2 to 5 days. You will receive the final determination in writing.

For New Hampshire Residents: In the event you do not receive satisfaction under this Peace of Mind contract, you may contact the New Hampshire Insurance Department, Consumer Division, which provides oversight for consumer guaranty contracts, at 21 South Fruit Street, Suite 14, Concord NH 03301 or 603-271-2261. This number is only for clients who purchased Peace of Mind.

ARBITRATION IF A DISPUTE ARISES BETWEEN YOU AND H&R BLOCK

If a dispute arises between you and H&R Block, including any dispute that relates to POM, the dispute shall be settled by binding arbitration unless you opt out of this arbitration provision. The arbitration procedures, including the procedures for you to opt out of arbitration, are set forth in the Client Service Agreement between you and Block, in the section titled "Arbitration if a Dispute Arises Between You and H&R Block." The "Arbitration if a Dispute Arises Between You and H&R Block" section hereby is incorporated by reference.

NOTE: This arbitration provision will not apply to any claims relating to the Peace of Mind Extended Service Plan, the subject matter of which is currently being asserted in any certified class action lawsuit pending against H&R Block as of Aug. 19, 2009.