(NYSE: HRB) — In a face-off of financial wits, 16 teams of high school students from across the country battled for more than $56,000 in college scholarships during the finals of the H&R Block Dollars & Sense National Challenge. Held April 24-27 at the DECA International Career Development Conference in Anaheim, Calif. competitors demonstrated their financial acumen in an online simulation created to increase teens’ personal finance skills.

Zechen Ma, Minnie Cui and Samuel Wu from Glenforest Secondary School in Mississauga, Ontario won first place and each received a $7,500 scholarship. Second place went to Victoria Bouras, Gavin Denecke and Tom Ritzman from Badger High School in Lake Geneva, Wis., who each received a $5,000 scholarship. In third place taking home $2,000 scholarships were Trong Duc Bui, Danny DeLeon and Peter Davidson from Southwest Miami High School in Miami, Fla. An additional $9,000 in scholarships was awarded to teams finishing fourth through eighth in the competition.

Finalists competed against more than 2,500 student teams in two challenge rounds to qualify for the national finals. Through the Dollars & Sense program, H&R Block has awarded more than $3.5 million in personal finance curriculum and scholarships to high schools and students nationwide since October 2009.

“This program helps teens learn personal finance skills in a compelling way so they’re better prepared when they’re on their own,” said Kelli Ramey, director of H&R Block Dollars & Sense. “We are so impressed with these students’ performance and are confident they’ll handle that responsibility well when the time comes. We’re happy to get them started on the right financial foot by providing them with money for college in the meantime.”

H&R Block Dollars & Sense was created to support local schools and help increase teens’ financial fitness. To execute the challenge, H&R Block Dollars & Sense partnered with DECA and Knowledge Matters, two leaders in the education field. For more information about the program, visit www.hrblockdollarsandsense.com. For event photos, visit www.flickr.com/photos/hrbds.

About H&R Block Dollars & Sense
Funded by H&R Block Inc. (NYSE: HRB), one of the world’s largest tax services providers, H&R Block Dollars & Sense provides personal finance curriculum to high schools and scholarships to students nationwide. Since 2009, H&R Block Dollars & Sense has donated more than $3 million in grants and scholarships. For more information, visit www.hrblockdollarsandsense.com.

About H&R Block
H&R Block, Inc. (NYSE: HRB) is the world’s largest consumer tax services provider. More than 600 million tax returns have been prepared worldwide by and through H&R Block since 1955. In fiscal 2012, H&R Block had annual revenues of $2.9 billion with 25.6 million tax returns prepared worldwide. Tax return preparation services are provided in company-owned and franchise retail tax offices by approximately 90,000 professional tax preparers, and through H&R Block At Home™ digital products. H&R Block Bank provides affordable banking products and services. For more information, visit the H&R Block Online Press Center.

The post Financially Fit Teens Win $50,000 in Scholarships from H&R Block appeared first on H&R Block Newsroom.

H&R Block, Inc. (NYSE: HRB), the world’s largest consumer tax services provider, today released its U.S. tax return volume through April 18. Total U.S. returns decreased 0.9(1) percent compared to the prior year to 22.0 million.

“The industry experienced unprecedented delays and changes to the timing of taxpayer filings this tax season which created significant challenges,” said Bill Cobb, H&R Block’s president and chief executive officer. “I am pleased that we remained focused and executed well as we closed the tax season. We remain committed to our long-term growth initiatives for fiscal 2014 and beyond,” added Cobb.

Total tax returns prepared through the company’s H&R Block At Home™ digital products increased 3.2 percent through April 18, led by strong online unit growth of 10.4 percent. Total U.S. assisted returns prepared fell 2.8 percent due in part to lower overall IRS filings than expected as well as changes in the company’s Free Federal 1040EZ promotion, which was offered for a limited time through February 15 this tax season.

Based on available data through April 18, the company’s preliminary analysis suggests that its share of total U.S. tax returns was essentially flat compared to the prior year as share gains of approximately 50 basis points in the digital online category were offset by an approximate 30 basis point decline in share in the assisted category.

“By executing on our strategic initiatives, we continue to strengthen our position in the key digital online category. Our overall mix of digital clients improved this year and we gained online market share for the third consecutive year,” said Cobb.

H&R Block to Announce Fiscal 2013 Results on June 12

The company will announce fiscal 2013 results on Wednesday, June 12, 2013, after the New York Stock Exchange market close. At that time, a copy of the press release will be available on the company’s investor relations website at http://investors.hrblock.com.

At 4:30 p.m. Eastern on June 12, 2013, the company will host a conference call for analysts, institutional investors and shareholders. To access the call, please dial the number below approximately 5 to 10 minutes prior to the scheduled starting time:

U.S./Canada (877) 809-6980 or International (706) 758-0071
Conference ID: 57796144

The call will also be webcast in a listen-only format for the media and public. The link to the webcast can be accessed directly at http://investors.hrblock.com.

A replay of the call will be available beginning at 6:30 p.m. Eastern on June 12, 2013, and continuing until July 12, 2013, by dialing (855) 859-2056 (U.S./Canada) or (404) 537-3406 (International). The conference ID is 57796144. The webcast will be available for replay June 13, 2013 at http://investors.hrblock.com.

About H&R Block
H&R Block, Inc. (NYSE: HRB) is the world’s largest consumer tax services provider. More than 600 million tax returns have been prepared worldwide by and through H&R Block since 1955. In fiscal 2012, H&R Block had annual revenues of $2.9 billion with 25.6 million tax returns prepared worldwide. Tax return preparation services are provided in company-owned and franchise retail tax offices by approximately 90,000 professional tax preparers, and through H&R Block At Home™ digital products. H&R Block Bank provides affordable banking products and services. For more information, visit the H&R Block Online Press Center.

Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “projects,” “forecasts,” “targets,” “would,” “will,” “should,” “could” or “may” or other similar expressions. Forward-looking statements provide management’s current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, income, earnings per share, capital expenditures, dividends, liquidity, capital structure or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. All forward-looking statements speak only as of the date they are made and reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond the Company’s control and which are described in our Annual Report on Form 10-K for the fiscal year ended April 30, 2012 in the section entitled “Risk Factors,” as well as additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

¹ Unless otherwise noted, all comparisons, including those made to the “prior year,” refer to the current period compared to the prior year period.

For Further Information
Investor Relations:
Colby Brown
(816) 854-4559

Media Relations:
Gene King
(816) 854-4672

The post H&R Block Reports Tax Return Volume Through April 18; To Announce Fiscal 2013 Results on June 12 appeared first on H&R Block Newsroom.

To get the pulse of how taxpayers see their financial situations, all one has to do is step inside one of the 11,000 H&R Block (NYSE: HRB) offices or scroll through the help section on its At Home solution. As the 2013 tax season comes to a close, The Tax Institute at H&R Block unveils some of the top taxpayer questions.

In prior years, unemployment, foreclosures and dependent care questions from the sandwich generation dominated the question queue. This year, the questions are about military residency, canceled debt and hardship distributions from retirement savings. This shows taxpayers are still seeking ways to save money, but also may have had to tap into savings.

“We are hearing about complicated topics on our digital product’s help line and via the questions being asked at the tax desk,” said Kathy Pickering, executive director of The Tax Institute at H&R Block. “We often say people’s lives and their taxes intersect, and the proof is in this list.  These tax topics are about some of the bigger life changes.”

The following questions (and answers) are among the top searched by taxpayers and H&R Block tax professionals.

Q1. I am in the military and stationed in a different state than where I usually live. What state tax returns do I need to file?

While this may seem really complicated, the simple rule is taxpayers file where they “live” and not necessarily where they are “stationed.” If the only reason a military member lives in a particular state is due to active duty status, then the original “home” state should be used for filing purposes. A military spouse may be eligible for the same tax treatment as the service member. Because individual situations vary, it’s best to consult a tax professional to be sure.

Q2. I negotiated with my credit card company to cancel my debt. How do I know if I am eligible to exclude that from my income?

Income from the cancelation of personal credit card debt is not excludable income. Generally, when a debt is canceled, that amount must be reported as income on a tax return. Sometimes when the canceled debt is taxable income, taxpayers can exclude that income and reduce other tax attributes, such as a capital loss carryforward.

Exceptions that allow taxpayers to not claim canceled debt as income include debt canceled as a result of insolvency or bankruptcy. Through 2013, the Mortgage Debt Relief Act makes some taxpayers eligible to exclude canceled debt from foreclosures.

Q3. Do I owe penalties if I took a hardship distribution from my 401(k)?

Unless a penalty exception is explicitly stated in tax code, financial hardship is not an exception the penalty. Generally, there is a 10-percent early distribution penalty when money is withdrawn from a 401(k) before the holder is 59 ½. Following are some exceptions to this penalty:

• When the distribution is made to beneficiaries after the account holder’s death
• When the distribution is because of total and permanent disability
• When the distribution will pay for tax-deductible medical expenses.

Q4. Who is responsible for paying a deceased taxpayer’s taxes?

The deceased taxpayer’s estate is responsible for paying the taxes and the executor of the estate is responsible for making sure a tax return is filed. Federal taxes due generally must be paid before all other estate debts. If the executor pays other debts first and there isn’t enough money left to pay the taxes, the executor could become personally responsible for the taxes.

Q5. If I take online classes, can I claim education tax breaks? What if I used money from a trust to pay the tuition?

Students who take online courses from an eligible educational institution and meet the other eligibility requirements may qualify to claim education tax breaks. An eligible institution is any college, university, vocational school or other post-secondary educational institution eligible to participate in a student-aid program administered by the Department of Education. Individual institutions should be able to tell students if they are eligible institutions.

If tuition is paid with money from a trust, education tax breaks can be claimed as long as the other eligibility qualifications are met.

“Taxes really aren’t a one-time, annual event,” Pickering said. “Deaths in the family, moves due to job changes and financial hardships happen all year and impact the tax return. Knowing the tax impact of these events when they occur can help save stress and possibly money.”

H&R Block’s tax professionals prepare and sign their clients’ tax returns, guaranteeing accuracy and the maximum refund. In-office preparation services include Second Look® reviews and Block Live^SM, the industry’s only video tax preparation solution. H&R Block At Home™ gives do-it-yourself filers the expertise and guidance of The Tax Institute at H&R Block on their computers, iPads and smartphones. The new My H&R Block Account lets taxpayers upload receipts and other important tax season documents securely, to one place, year-round, for free. The company offers affordable financial products and services through H&R Block Bank and keeps its offices open and tax conversation going with clients year-round via blogs, tweets and Facebook.

Regardless of who prepares tax returns, taxpayers are legally responsible for the contents. To find the nearest H&R Block office, visit www.hrblock.com or call 800-HRBLOCK.

###

About H&R Block
H&R Block, Inc. (NYSE: HRB) is the world’s largest tax services provider. More than 600 million tax returns have been prepared worldwide by and through H&R Block since 1955. In fiscal 2012, H&R Block had annual revenues of $2.9 billion with 25.6 million tax returns prepared worldwide. Tax return preparation services are provided in company-owned and franchise retail tax offices by approximately 90,000 professional tax preparers, and through H&R Block At Home™ digital products. H&R Block Bank provides affordable banking products and services. For more information, visit the H&R Block Online Press Center.

About The Tax Institute at H&R Block
The Tax Institute at H&R Block is the go-to source for objective insights on federal and state tax laws affecting the individual. It provides nonpartisan information and analysis on the real world implications of tax policies and proposals to policymakers, journalists, experts and tax preparers. The Institute’s experts include CPAs, Enrolled Agents, tax attorneys and former IRS agents. Building off more than 10 years of research and analysis from a specialized tax research group at H&R Block, the company launched The Tax Institute in 2007.

The post Need for Extra Cash, Tax Implications of Dipping into Savings Top 2013 List of Taxpayer Dilemmas appeared first on H&R Block Newsroom.

But, don’t think an extension to file also means an extension to pay. Almost half of Americans weren’t aware they still had to pay taxes owed even if they filed a tax return extension, according to a survey conducted by The Tax Institute at H&R Block.

H&R Block also is providing additional information online for late-season filers. Its Extension Resource Center is a one-stop resource for information about filing an extension, including how to pay any balance due conveniently and securely using a credit or debit card.

“Rushing to file a tax return by the deadline can mean missing out on claiming valuable tax breaks that can cost taxpayers more in taxes than they actually owe,” said Kathy Pickering, executive director of The Tax Institute at H&R Block. “Taxpayers may want to seek assistance to file an accurate tax return to claim all the tax credits and deductions they are due or with filing a free extension.”

On average, more than 10 million taxpayers applied for a tax filing extension each of the past few years. This gave them time to file accurate returns and avoid the 5-percent monthly failure-to file-penalty.

This extension gives taxpayers an extra six months to file a tax return, making the new filing deadline Oct. 15. H&R Block can help taxpayers understand their payment options if there is a balance due.

Taxpayers residing outside the country (including members of the military) routinely receive an additional two months to file, making their deadline June 15 this year.

IRS offering additional payment assistance

This year, the IRS is allowing late-payment penalty relief to some who request an extension to file. To get this relief, the taxpayer also must be filing one of the delayed IRS forms resulting from tax legislation passed in January. Additionally, taxpayers must pay their “good faith” estimate of their tax bill by April 15. The IRS will waive any late-payment penalties applied to the taxpayer’s balance due if these guidelines are followed. Interest still applies to the unpaid balance.

For more information about applying for a free tax extension at an H&R Block office, visit www.hrblock.com or call 800-HRBLOCK.

H&R Block’s tax professionals prepare and sign their clients’ tax returns, guaranteeing accuracy and the maximum refund. In-office preparation services include Second Look® reviews and Block Live^SM, the industry’s only video tax preparation solution. H&R Block At Home™ gives do-it-yourself filers the expertise and guidance of The Tax Institute at H&R Block on their computers, iPads and smartphones. The new My H&R Block Account lets taxpayers upload receipts and other important tax season documents securely, to one place, year-round, for free. The company offers affordable financial products and services through H&R Block Bank and keeps its offices open and tax conversation going with clients year-round via blogs, tweets and Facebook.

Regardless of who prepares tax returns, taxpayers are legally responsible for the contents. To find the nearest H&R Block office, visit www.hrblock.com or call 800-HRBLOCK.

###

About H&R Block
H&R Block, Inc. (NYSE: HRB) is the world’s largest tax services provider. More than 600 million tax returns have been prepared worldwide by and through H&R Block since 1955. In fiscal 2012, H&R Block had annual revenues of $2.9 billion with 25.6 million tax returns prepared worldwide. Tax return preparation services are provided in company-owned and franchise retail tax offices by approximately 90,000 professional tax preparers, and through H&R Block At Home™ digital products. H&R Block Bank provides affordable banking products and services. For more information, visit the H&R Block Online Press Center.

About The Tax Institute at H&R Block
The Tax Institute at H&R Block is the go-to source for objective insights on federal and state tax laws affecting the individual. It provides nonpartisan information and analysis on the real world implications of tax policies and proposals to policymakers, journalists, experts and tax preparers. The Institute’s experts include CPAs, Enrolled Agents, tax attorneys and former IRS agents. Building off more than 10 years of research and analysis from a specialized tax research group at H&R Block, the company launched The Tax Institute in 2007.

The post Can’t file on time? Not sure it’s right? Don’t settle for less – H&R Block offers free tax extension filing appeared first on H&R Block Newsroom.

The federal government estimates it has a $450 billion tax gap (the amount the IRS estimates is missed in tax collections). One way the government tries to close that gap is through IRS audits of those suspected of having underpaid. In 2011, 7.4 percent of taxpayers were contacted by the IRS about their returns, and the IRS collected $15 billion from audits. H&R Block (NYSE: HRB) advises that even with an atmosphere that includes more people being audited, taxpayers shouldn’t be afraid to claim all the tax breaks to which they are entitled.

“The best defense against an audit is to report all income and claim only the tax deductions and credits you are due,” said Kathy Pickering, executive director of The Tax Institute at H&R Block. “Often, the IRS may request additional information or paperwork. A timely response by the taxpayer could mean the difference between owing extra tax or being able to justify claiming the valuable tax break. That is why being able to substantiate what is on the tax return is very important, so be sure to keep organized financial records supporting those tax breaks.”

Who is being audited and why?

The profile of a potential audit candidate has shifted from the rich to include people who make far more modest incomes. Of the more than 1.5 million audits conducted in 2011, 2 in 3 were of people who made $50,000 or less. Following are some common reasons the IRS contacts taxpayers:

• Unreported income, inconsistencies – the surest way to get a letter from the IRS is to not report all income
  • A document-matching program makes it easy for the IRS to check income reported on tax returns against what is reported by employers, banks, brokers, etc.
  • The IRS also compares deductions taken by taxpayers in the same income bracket to find inconsistencies in areas including mileage and charitable donations
• Claims for expenses not allowable and a majority of cash business self-reported transactions on the Schedule C
  • Eligible expenses can include advertising, insurance, legal services, vehicle expenses, employee wages and taxes, home office expenses and depreciation.

What should a taxpayer do when contacted by the IRS?

While tax season is January through mid-April, audits are conducted year round. The IRS may contact a taxpayer as late as three years from the filing date. However, contact may be very soon after the return is filed if an item is flagged for some reason.

Taxpayers who get an audit notice in the mail should contact their tax professional immediately as delays could result in additional penalties and fees. Most audits are correspondence audits conducted via mail; resolving the matter may be as simple as sending supporting documentation to the IRS. In any case, it is important to respond to the notice promptly. If a face-to-face meeting is required, some taxpayers may elect to have their representative attend without them. In the end, if the taxpayer disagrees with the auditor’s findings, the results of the audit may be appealed.

“Being prepared for an audit means understanding what is being asked of you, providing that information only and often getting professional help,” Pickering said.

H&R Block’s tax professionals prepare and sign their clients’ tax returns, guaranteeing accuracy and the maximum refund. In-office preparation services include Second Look® reviews and Block Live(SM), the industry’s only video tax preparation solution. H&R Block At Home™ gives do-it-yourself filers the expertise and guidance of The Tax Institute at H&R Block on their computers, iPads and smartphones. The new My H&R Block Account lets taxpayers upload receipts and other important tax season documents securely, to one place, year-round, for free. The company offers affordable financial products and services through H&R Block Bank, and keeps its offices open and tax conversation going with clients year-round via blogs, tweets and Facebook.

Regardless of who prepares tax returns, taxpayers are legally responsible for the contents. To find the nearest H&R Block office, visit www.hrblock.com or call 800-HRBLOCK.

About H&R Block
H&R Block, Inc. (NYSE: HRB) is the world’s largest tax services provider. More than 600 million tax returns have been prepared worldwide by and through H&R Block since 1955. In fiscal 2012, H&R Block had annual revenues of $2.9 billion with 25.6 million tax returns prepared worldwide. Tax return preparation services are provided in company-owned and franchise retail tax offices by approximately 90,000 professional tax preparers, and through H&R Block At Home™ digital products. H&R Block Bank provides affordable banking products and services. For more information, visit the H&R Block Online Press Center.

About The Tax Institute at H&R Block
The Tax Institute at H&R Block is the go-to source for objective insights on federal and state tax laws affecting the individual. It provides nonpartisan information and analysis on the real world implications of tax policies and proposals to policymakers, journalists, experts and tax preparers. The Institute’s experts include CPAs, Enrolled Agents, tax attorneys and former IRS agents. Building off more than 10 years of research and analysis from a specialized tax research group at H&R Block, the company launched The Tax Institute in 2007.

For Further Information:
Gene King
816-854-4287
Email Contact

The post Audit Worries Shouldn’t Keep Taxpayers From Taking Valid Tax Breaks appeared first on H&R Block Newsroom.

March Madness’ bracketology is not only a distraction for many while they should be working, but it also is a hotbed of betting with an estimated $80 million to $90 million wagered legally in Nevada and another $2.5 billion in bets made in office pools and other wagers. H&R Block (NYSE: HRB) advises that no matter the source of winnings, taxpayers may not be aware they need to pay taxes on the money they win.

“When people get money from their friends or co-workers for winning a pool on a sporting event, they tend not to think of it as income, but it is,” said Kathy Pickering, executive director of The Tax Institute at H&R Block. “Money won this way or at a casino is miscellaneous income, and it needs to be reported on your tax return.”

Miscellaneous income comes in many forms, including gambling winnings

The income sources taxpayers are more familiar with are wages, salaries, interest, dividends, tips and commissions. Other income comes from a variety of sources – some of which many people don’t even realize are considered “real” income sources and therefore taxable. These are among the other sources of income:

• Gambling
• Side jobs paid in cash
• Hobby income
• Barters and exchanges for goods and services
• Jury duty
• Cancellation of debt, such as for credit cards and home loans
• Awards, prizes and contests
• Some legal settlements

Money from these sources is potentially taxable even if the recipient doesn’t get a Form 1099-MISC, W-2G or other information document. The exception is when tax law explicitly designates the money as tax-exempt, which can happen with interest from some kinds of municipal bonds.

Plus, certain gambling winnings of more than $5,000, including winnings from a wagering pool, may be subject to 25-percent federal income tax withholding up front.

Taxpayers who win $1,200 or more from slot machines, bingo and some other games may walk away with all of it if they provide their Social Security number and contact information so a W-2G can be issued. If the contact information isn’t provided, the gambling establishment will hold back 28 percent of the winnings to cover the income tax. No matter what, all winnings must be reported on the tax return. Gambling winnings also are taxed by some states.

Some gambling losses are tax-deductible

All gamblers (professional and casual gamblers) may deduct only as much in losses as they report in winnings. Gamblers should keep detailed records of all wins and losses, including “comps,” prizes, etc.

Gambling losses (only up to winnings) can be deducted directly against income only by professional gamblers. The professionals are those who gamble full-time on a regular basis and make their livelihood from gambling. They pay self-employment taxes and file small business tax forms like any other self-employed taxpayer.

Casual gamblers deduct losses (again, only up to winnings) as itemized deductions. Gambling losses are not subject to the 2 percent of adjusted gross income limitation.

H&R Block’s tax professionals prepare and sign their clients’ tax returns, guaranteeing accuracy and the maximum refund. In-office preparation services include Second Look® reviews, and Block Live^SM, the industry’s only video tax preparation solution. H&R Block At Home™ gives do-it-yourself filers the expertise and guidance of The Tax Institute at H&R Block on their computers, iPads and smartphones. The new My H&R Block Account lets taxpayers upload receipts and other important tax season documents securely, to one place, year-round, for free. The company offers affordable financial products and services through H&R Block Bank, and keeps its offices open and tax conversation going with clients year-round via blogs, tweets and Facebook.

Regardless of who prepares tax returns, taxpayers are legally responsible for the contents. To find the nearest H&R Block office, visit www.hrblock.com or call 800-HRBLOCK.

###

Media Relations:
Gene King 816.854.4287 gene.king@hrblock.com

The post The Real Gamble is not Paying Taxes on March Madness Windfalls appeared first on H&R Block Newsroom.

“While we are disappointed with the court’s decision to not stop these commercials from airing, we will continue to stand up for our tax professionals, our clients and our brand,” said Robert Turtledove, senior vice president and chief marketing officer of H&R Block. ”When our free Second Look^® reviews continue to find money left on the table due to mistakes or oversights made by taxpayers who used TurboTax to prepare their returns, we know the value that a professional tax preparer brings to clients.”

On January 23, 2013, H&R Block filed an action against Intuit seeking injunctive relief and damages based on a campaign that allegedly includes false and misleading advertising, unfair competition and infringement of its legally protected trademarks in TurboTax television commercials. Though a request for preliminary injunctive relief was denied, the full case will proceed toward trial.

“We welcome the scrutiny and advice offered by Dan Maurer, general manager and senior vice president of Intuit’s Consumer Tax Group when he urged ‘…taxpayers to take another look at who is preparing their tax return …,’” noted Turtledove. “Taxes are complicated. That’s why we invite you to let H&R Block take another look at your current return, or go three years back and review prior returns. Come into one of our nearly 11,000 offices or reach us online through BlockLive, and we will get you every penny you are entitled to.”

About H&R Block
H&R Block, Inc. (NYSE: HRB) is the world’s largest tax services provider. More than 600 million tax returns worldwide have been prepared by and through H&R Block since 1955. In fiscal 2012, H&R Block had annual revenues of $2.9 billion with 25.6 million tax returns prepared worldwide. Tax return preparation services are provided in company-owned and franchise retail tax offices by nearly 90,000 professional tax preparers, and through H&R Block At Home™ digital products. H&R Block Bank provides affordable banking products and services. For more information, visit the H&R Block Online Press Center.

Investor Relations:
Derek Drysdale 816-854-4513 derek.drysdale@hrblock.com

Media Relations:
Gene King 816.854.4287 gene.king@hrblock.com

The post H&R Block Continues to Champion Its Tax Professionals appeared first on H&R Block Newsroom.

In a typical year, the IRS begins accepting tax returns by mid-January. This year, the IRS opened its e-file system on Jan. 30, just before the end of H&R Block’s fiscal third quarter on Jan. 31. In addition, the IRS and other taxing jurisdictions did not accept certain tax forms until early March. As a result, the company believes industry-wide tax filings through Feb. 28 have been delayed by up to two weeks versus the comparable prior year period.

Total U.S. tax returns prepared by and through H&R Block were lower by 5.8 percent through Feb. 28.(1) The company estimates that industry-wide U.S. tax filings were down approximately 8 percent on a comparable date-to-date basis through Feb. 28. The company believes industry-wide U.S. filings will fully normalize and grow 1 to 2 percent by the end of the tax season.

CEO Perspective

“We entered this tax season with a very thoughtful plan and while we’ve had to make some adjustments due to the unprecedented delays and competitive factors, I am pleased with our execution to date,” said Bill Cobb, H&R Block’s president and chief executive officer. “Our analysis of industry data gives us confidence that we are on track with our plans for fiscal 2013.”

Third Quarter 2013 Highlights

• Total revenues were lower by 29 percent, primarily driven by timing issues from the IRS opening its e-file system on Jan. 30 and the resulting delays to the start of the U.S. tax season
• GAAP net loss from continuing operations of $17 million, or 6 cents per share, compared to prior year loss of $4 million, or 1 cent per share,(2) driven by the revenue shortfall from the aformentioned delays, partially offset by H&R Block’s previously announced cost reduction initiatives and a $43 million income tax benefit resulting from a settlement with the IRS
• Adjusted net loss of $60 million, or 22 cents per share, compared to break-even in prior year, primarily driven by the aforementioned delays to the start of the U.S. tax season
• H&R Block remains on pace to deliver $85 to $100 million of pretax earnings from cost reduction initiatives in fiscal 2013

Third Quarter Results From Continuing Operations

*Adjusted amounts and EBITDA (earnings before interest, taxes, depreciation and amortization) are non-GAAP financial measures. See “About Non-GAAP Financial Measures” below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).

CFO Perspective

“The delayed start to this tax season led to a material shift of business from our fiscal third quarter to our fiscal fourth quarter,” said Greg Macfarlane, H&R Block’s chief financial officer. “As a result, our third quarter results are not indicative of the results we expect to achieve this fiscal year. Our cost reduction initiatives remain on track and we continue to believe that we’ll deliver significant earnings and margin expansion in fiscal 2013,” added Macfarlane.

Business Segment Results and Highlights

Tax Services

• Revenues were lower by $191 million, or 29 percent, primarily due to the delayed start of the U.S. tax season
• H&R Block deferred $15 million of revenue to its fiscal fourth quarter, as the IRS did not accept returns that included certain forms prior to January 31
• Pretax loss of $64 million compared to pretax income of $32 million in prior year, primarily due to the delayed start of the U.S. tax season

Corporate

• Revenues of $7 million were essentially flat to prior year
• Pretax loss improved by $1 million to $32 million

Third Quarter Results from Discontinued Operations

• Net loss of $1 million compared to near break-even net earnings in prior year
• Sand Canyon Corporation (SCC), a separate legal entity from H&R Block, Inc., received new claims during the quarter for alleged breaches of representations and warranties in the principal amount of $16 million
• SCC reviewed claims in the principal amount of $9 million during the quarter, all of which were deemed invalid
• SCC’s accrual for contingent losses related to representations and warranties totaled $119 million at Jan. 31

Dividend

A previously announced quarterly cash dividend of 20 cents per share is payable on April 1, 2013 to shareholders of record as of March 18, 2013. The April 1 dividend payment will mark H&R Block’s 202^nd consecutive quarterly dividend since the company went public in 1962.

About H&R Block
H&R Block, Inc. (NYSE: HRB) is the world’s largest consumer tax services provider. More than 600 million tax returns have been prepared worldwide by and through H&R Block since 1955. In fiscal 2012, H&R Block had annual revenues of $2.9 billion with 25.6 million tax returns prepared worldwide. Tax return preparation services are provided in company-owned and franchise retail tax offices by approximately 90,000 professional tax preparers, and through H&R Block At Home™ digital products. H&R Block Bank provides affordable banking products and services. For more information, visit the H&R Block Online Press Center.

About Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled “About Non-GAAP Financial Measures.”

Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “projects,” “forecasts,” “targets,” “would,” “will,” “should,” “could” or “may” or other similar expressions. Forward-looking statements provide management’s current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, income, earnings per share, capital expenditures, dividends, liquidity, capital structure or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. All forward-looking statements speak only as of the date they are made and reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond the Company’s control and which are described in our Annual Report on Form 10-K for the fiscal year ended April 30, 2012 in the section entitled “Risk Factors,” as well as additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

(1) Unless otherwise noted, all comparisons, including those made to the “prior year,” refer to the current period compared to the prior year period.

(2) All per share amounts are based on fully diluted shares.

The complete press release with financial tables can be viewed here: MarketWire

Investor Relations:
Derek Drysdale 816-854-4513 derek.drysdale@hrblock.com

Media Relations:
Gene King 816.854.4287 gene.king@hrblock.com

The post H&R Block Reports U.S. Tax Volume Through Feb. 28; Fiscal 2013 Third Quarter Earnings Ended Jan. 31 appeared first on H&R Block Newsroom.

The April 1 dividend payment will mark H&R Block’s 202^nd consecutive quarterly dividend since the company went public in 1962.

About H&R Block
H&R Block, Inc. (NYSE: HRB) is the world’s largest consumer tax services provider. More than 600 million tax returns have been prepared worldwide by and through H&R Block since 1955. In fiscal 2012, H&R Block had annual revenues of $2.9 billion with 25.6 million tax returns prepared worldwide. Tax return preparation services are provided in company-owned and franchise retail tax offices by approximately 90,000 professional tax preparers, and through H&R Block At Home™ digital products. H&R Block Bank provides affordable banking products and services. For more information, visit the H&R Block Online Press Center.

Investor Relations:
Derek Drysdale 816-854-4513 derek.drysdale@hrblock.com

Media Relations:
Gene King 816.854.4287 gene.king@hrblock.com

The post H&R Block Announces Quarterly Cash Dividend appeared first on H&R Block Newsroom.

Kicking off these conversations in Washington, D.C. with our partner Bloomberg Government, we had a robust conversation about what the consumer knows now and needs to know down the road about the Affordable Care Act, expectations that the landmark health care law is indeed still a work in progress and how consumers will navigate the new health exchanges that are being established.

The Tax Institute at H&R Block conducted a survey last fall and what’s remarkable is that we discovered that three out of four taxpayers do not know what will be necessary to be eligible for health insurance under the new law – and that it can start with the tax return that they will file this year. Consumers, taxpayers, businesses, and the uninsured all face unique and unprecedented challenges to understand and benefit from the law.

Not surprisingly, most people are familiar with one of the law’s most prominent features:  the mandate for having health insurance. However, a significant minority, 44 percent of respondents age 18-34 were not aware that they may face a tax penalty if they fail to obtain insurance coverage. What many taxpayers do not also realize is that they may be eligible for tax credits, or subsidies to help purchase that coverage.

While there are groups, like Enroll America, that are focused on enrollment, there’s also a real need to educate taxpayers on the implications to the tax return, and that’s where H&R Block is uniquely positioned to help.  There is no time to waste, the 2012 tax return deadline is less than two months away and the exchanges open for business on Oct. 1. This conversation must expand and quickly.

As former Senator Blanche Lincoln noted during our conversation: “I just think it’s really critical that we all know that we have a tremendous amount to gain if we get it right as we come through these changes, and that it’s going to take every one of us to deploy it – to deploy that information.”

I found one idea for outreach particularly intriguing for engaging consumers about the rapidly coming changes in health care, suggested by Paul Keckley, executive director of the Deloitte Center for Health Solutions. He highlighted the benefits of using mobile applications to engage consumers about the coming changes in health care. He noted that moments of opportunity to enroll the uninsured, or begin the process, could be accomplished through mobile applications when they get care from a clinic or emergency room. “We believe mobile apps touch a substantial number in this population,” Keckley said.

At H&R Block, we are also doing our part with our team of tax professionals conducting personal reviews on a daily basis for clients, including showing them how they may qualify for assistance to pay for health insurance and noting how their tax return this year could serve as the baseline for that subsidy.

Additionally, in the coming weeks, our team from The Tax Institute at H&R Block will be hitting the road for Florida, California and Illinois. This is part of our effort to draw attention to these issues and engage policymakers, state administrators, businesses and taxpayers on what they need to know, highlight how the health care law will affect them and help make this transition as seamless as possible.

We look forward to seeing you on the road – and let us know how we can help!

Kathy Pickering is the executive director of The Tax Institute at H&R Block. With more than a decade of experience in tax operations and 25 years in information technology, Pickering is responsible for the strategic direction and management for a team of the nation’s top experts on tax issues. Prior to joining H&R Block, Pickering worked with Sprint PCS, Olsten Health Services and various consulting firms where she focused on implementing accounting and financial systems, and leading Enterprise Resource Planning (ERP) software implementations, such as JD Edwards and PeopleSoft software.

The post Implementing the Affordable Care Act: Education, Enrollment and the taxpayer appeared first on H&R Block Newsroom.