H&R Block

H&R Block is a prominent American tax preparation company, providing a wide array of financial services to individuals and small businesses. Founded in the mid-20th century, it has grown into one of the largest and most recognizable brands in its industry, operating through a vast network of retail offices and digital platforms. The company is publicly traded on the New York Stock Exchange and maintains its global headquarters in Kansas City, Missouri.

History

The company was founded in 1955 by brothers Henry Bloch and Richard Bloch, initially operating as a small bookkeeping service in Kansas City. The pivotal shift to focusing on income tax return preparation occurred after an advertisement in the The Kansas City Star garnered significant client interest. Throughout the 1960s and 1970s, the firm expanded rapidly across the United States, establishing a seasonal, retail-oriented model that became its hallmark. A major milestone was its initial public offering and listing on the New York Stock Exchange in 1969. The company later expanded internationally, acquiring operations in Canada, Australia, and other markets, while also diversifying into areas like mortgage lending and investment banking through subsidiaries like Option One Mortgage Corporation and H&R Block Financial Advisors.

Services

The company's core service is assisted tax preparation and filing, offered through its network of company-owned and franchised offices staffed by tax professionals. It provides a suite of do-it-yourself tax software products, competing directly with companies like Intuit's TurboTax and TaxAct. For clients expecting a tax refund, it offers various financial products, including refund anticipation checks and refund anticipation loans, though the regulatory landscape for these has changed significantly. Additional services include bookkeeping support for small businesses through its Bench Accounting acquisition, personal financial planning, and representation in cases involving the Internal Revenue Service.

Business operations

The company operates through three primary segments: Assisted Tax Preparation, which encompasses its vast retail office network; the DIY Tax Preparation software division; and the Wave small business financial platform. Its retail presence is extensive, with thousands of locations throughout all fifty U.S. states and in international markets like Canada and Australia. Key leadership has included long-time CEO Henry Bloch and later executives such as Mark A. Ernst and current chief executive Jeffrey J. Jones II. Major competitors in the tax preparation space include Intuit, Jackson Hewitt, and Liberty Tax Service.

Controversies and legal issues

The company has faced significant scrutiny and legal challenges over its financial products, particularly its marketing and fees associated with refund anticipation loans, which critics argued targeted low-income consumers. It settled a major class-action lawsuit regarding these practices in the early 2000s. Its foray into the subprime mortgage business through its former subsidiary, Option One Mortgage Corporation, resulted in substantial financial losses during the 2008 financial crisis and subsequent divestment. The company has also been involved in disputes with the Internal Revenue Service and the Federal Trade Commission over advertising claims and service transparency. In 2020, it agreed to a settlement with the New York State Department of Financial Services over alleged violations in its savings account products.

See also

* Tax preparation in the United States * Intuit * Jackson Hewitt * Income tax in the United States * Electronic filing of tax returns

Category:Tax preparation companies of the United States Category:Companies based in Kansas City, Missouri Category:Companies listed on the New York Stock Exchange