Monday, February 27, 2006

H&R Block

As many of you know my wife and I are Accountants. Karena is a CPA and has been an Accountant since she graduated college. I spent fifteen years working in various industries and recently switched to accounting.

This is obviously our busy time of year. It looks like we will do about 289 returns this year; of those returns 106 are done... We have 183 to go...

H&R Block had to restate its earnings because it understated its Income Tax Liability by 32 million. In other words, they screwed up their taxes and owe Uncle Sam another 32 million dollars. Wow.

<http://www.usatoday.com/money/companies/earnings/2006-02-24-hr-block_x.htm>

Tax Refund Loans are a large part of H&R Blocks business. I do not think Tax Refund Loans are a good idea for 99.9% of the public. Unfortunately, H&R Block is pushing these loans...

Many of these loans work out to be in excess of 100% interest when annualized over the course of a year. Some are way over 100%! These loans work in a method similar to "check cashing" services in reality...