Friday, February 24, 2006
Interesting press release yesterday from H&R Block:
As part of its ongoing work to remediate control weaknesses in its corporate tax function, the company said that it will restate its results for fiscal years 2005 and 2004, as well as previously reported quarterly results for fiscal 2006. The restatement pertains principally to errors in determining the company’s state effective income tax rate, resulting in a cumulative understatement of its state income tax liability of approximately $32 million as of April 30, 2005. The company estimates that the restatement will result in a 7-cent decrease in earnings per share in fiscal 2005 and a 2-cent decrease in earnings per share in fiscal 2004.
Nice to see a company live up to its promise: "[W]e ensure that you will benefit from every deduction and credit available to you. If you don't get the maximum refund you're entitled to on your taxes, then your tax preparation is FREE. This is our Maximum Refund Guarantee." The media has poked fun at the world's leading tax preparation firm messing up its own taxes:
- Reuters, H&R Block Reports Tax Miscue:
H&R Block Inc., which provides tax advice to millions of Americans, made an embarrassing confession on Thursday. It goofed on its own taxes.
- Wall Street Journal, H&R Block Gets Its Taxes Wrong, Cuts Profit Outlook:
H&R Block Inc., the company that helps millions of Americans complete tax returns, said late Thursday that it got its own taxes wrong in recent years.
(Hat Tip: Bill Sjostrom.)