Filing Season Follies

In a classic tax-season episode of “The Honeymooners,” Ralph is seen sweating out a notice from the IRS that instructs him to report immediately to the local office in order to clear up an important matter.

Thinking he made a mistake filling out his return and imagining draconian penalties such as prison time, he wife Alice lectures him about the danger of self-filing and how he should have “gone to the barbershop” and have someone who knows what they’re doing to assist him. As it turns out, all the hapless bus driver was guilty of was neglecting to sign his return.

I was reminded of this knee-slapping vignette when I read about a case in federal court in Missouri that has denied tax-prep conglomerate H&R Block’s attempt to prevent software publisher Intuit from airing a pair of TV spots for TurboTax that, well, sort of insinuate that employees of the national tax chain are employed as plumbers and clothing store clerks in the off-season.

Three divisions of Block had filed suit against the ads only to have t the U.S. District Court for the Western District of Missouri ruled against the Kansas City, Mo.-based company.

The spots don’t actually mention Block by name, but Intuit showcases the lack of experience at the “major tax stores,” comparing it to its own in-house staff, maintaining that it hires only credentialed preparers such as CPAs, Enrolled Agents, and tax attorneys to provide tax advice to its customers and that 25 million people used TurboTax last year, rendering visits to tax franchises like Block unnecessary.

Obviously I’m not going to take sides, as both factions probably have valid arguments  and, in full disclosure, never having availed myself of either a national preparation chain or a DIY tax software program, I’m probably not credible as a commentator.

But it does sort of hammer home a broader point, that of erring on the side of caution by using experienced folks for tasks that may be a bit out of your area of expertise – much like the time I ambitiously tackled the project of installing a router in my house and wound up supplying my neighbors with free Wi-Fi Internet.

In an example somewhat closer to home, I was recently engaged in a dialog with a small New Jersey practice that was looking to merge up. When I explained to him how we could help, he immediately dismissed the offer, crowing about his vast resume in structuring mergers.

Since his practice generated rather unspectacular annual revenues of $225,000 I resisted the all-to-easy opening to inquire if his roster of past acquirees was comprised of folks who prepare taxes four months of the year and drive a city bus to make ends meet.

No offense to the good folks at Block. But you get the idea.

It’s often been said that “You don’t know what you don’t know.” Those who forget that – whether for taxes, M&A, or basic household improvements – often wind up as fodder for a sitcom script.

And that's not a close-up anybody wants.