Editing H&R Block (section)

==History==
===Founding===
During [[World War II]], [[Henry W. Bloch]] was a young [[United States Army Air Forces|Army Air Forces]] navigator who wanted to start a family business with his brothers in Kansas City.<ref name="happy returns">{{usurped|1=[https://web.archive.org/web/20130605012003/http://henrybloch.com/ henrybloch.com]}}, Many Happy Returns, Thomas M. Bloch, 2010.</ref> Home from the war in 1946, Henry saw a pamphlet suggesting a bright future for companies serving small businesses, and it sparked his imagination.<ref name="happy returns" /> That year, Henry and his older brother, Leon, borrowed $5,000 and opened a small [[bookkeeping]] business on Main Street in downtown Kansas City.<ref name="happy returns" /> However, four months later, they had few clients and Leon decided to seek a [[law degree]].<ref name="happy returns" />

Henry wanted to keep trying with the fledgling business and placed a newspaper advertisement for help-wanted.<ref name="happy returns" /> He got an unexpected response—from his mother—who proposed that Henry hire his younger brother, [[Richard Bloch|Richard]], for the job.<ref name="happy returns" /> Henry and Richard Bloch jointly ran their United Business Company, which focused on accounting, bookkeeping and payroll, but also did some income tax work for clients.<ref name="Dornbrook6Aug14">{{cite news |title=H&R Block turns attention to small biz accounting services |last1=Dornbrook |first1=James |url=https://www.nexis.com/docview/getDocForCuiReq?lni=5CVC-R5V1-JCPJ-W0KH&csi=8399&oc=00240&perma=true |newspaper=[[American City Business Journals|Kansas City Business Journal]] |date=6 August 2014 |access-date=26 February 2018}}</ref> The brothers took out an ad for its $5 tax services in ''[[The Kansas City Star]]'' newspaper in 1955. The ad was a success and H&R Block was born.<ref name="Tavernise04">{{cite news |title=Richard Bloch, 78, businessman who helped create H&R Block |last1=Tavernise |first1=Sabrina |url=https://www.nytimes.com/2004/07/22/business/richard-bloch-78-businessman-who-helped-create-h-r-block.html |newspaper=[[The New York Times]] |date=22 July 2004 |access-date=21 February 2018}}</ref><ref name="CNNMoney00">{{cite news |title=H&R Block founder to retire |url=https://money.cnn.com/2000/06/21/companies/hrblock/ |newspaper=[[CNNMoney]] |date=21 June 2000 |access-date=21 February 2018}}</ref> The Bloch brothers chose to spell the name "Block" with a K to ensure the name was not mispronounced "blotch".<ref name="Tavernise04"/><ref>{{cite news| url=http://findarticles.com/p/articles/mi_m1154/is_v75/ai_4722544/ | archive-url=https://web.archive.org/web/20050105222608/http://www.findarticles.com/p/articles/mi_m1154/is_v75/ai_4722544 | url-status=dead | archive-date=2005-01-05 | work=Nation's Business | title=Bloch that IRS return – H&R Block Inc.'s income tax preparation service | first=William | last=Hoffer | year=1987}}</ref>

===Expansion (1956–1980s)===
In 1956, the Blochs decided to expand and picked [[New York City]].<ref name="CNNMoney00"/> Neither brother wanted to move to New York, so they agreed to sell that regional operation, creating the first H&R Block [[Chain store|franchise]] tax office.<ref name="Herron17">{{cite web |url=http://www.franchising-today.com/sections/profiles/206-h-r-block |title=H&R Block |author=Bianca Herron |date=27 March 2017 |publisher=Franchising Today |access-date=21 February 2018}}</ref> In the following years, H&R Block grew and went public in 1962.<ref name="Tavernise04"/>

In 1980 H&R Block purchased the [[Compuserve]] online service.<ref name="GlobeandMail80">{{cite news |title=International company news: H&R Block |url=https://www.nexis.com/docview/getDocForCuiReq?lni=4MBD-SF80-TXJ2-N130&csi=8399&oc=00240&perma=true |newspaper=[[The Globe and Mail]] |date=26 February 1980 |quote=Directors of H and R Block Inc. of Kansas City, Mo., and Compuserve Inc. of Columbus, Ohio, have approved the acquisition of Compuserve by a subsidiary of Block. |url-access=registration |access-date=21 February 2018}}</ref> By 1986, Block was handling more than 10 million tax returns annually and had opened offices in [[Canada]] and [[Australia]].<ref name="Grove86">{{cite news |title=H&R |last1=Grove |first1=Lloyd |url=https://www.washingtonpost.com/archive/lifestyle/1986/04/04/h38/5b5bb647-075d-4d99-8c2e-f44e8a9dc773/ |newspaper=[[The Washington Post]] |date=4 April 1986 |access-date=21 February 2018}}</ref><ref name="Brett86">{{cite news |title=Mixed news on tax front |last1=Brett |first1=George |url=https://www.nexis.com/docview/getDocForCuiReq?lni=3WJ6-18H0-00RK-C3B4&csi=8399&oc=00240&perma=true |newspaper=[[Toronto Star]] |date=6 April 1986 |quote=But annuity broker Tom Delaney was surprised to find that H & R Block Canada Inc., the big tax-preparation firm, had completed a tax return for one of his senior-citizen clients—and charged her $20.80—even though she wasn't taxable and wasn't getting money back. |url-access=registration |access-date=21 February 2018}}</ref><ref name="Lampe90">{{cite news |title=How to avoid the clutches of the rogue tax agent |last1=Lampe |first1=Anne |url=https://www.nexis.com/docview/getDocForCuiReq?lni=4P7M-CV10-TXN5-R3BF&csi=8399&oc=00240&perma=true |newspaper=[[Sydney Morning Herald]] |date=8 August 1990 |quote=This is what happened with a group of clients of H & R Block's former Brookvale franchisee during 1986, 1987 and 1988. |url-access=registration |access-date=21 February 2018}}</ref> That year, the company worked with the [[Internal Revenue Service]] to introduce [[IRS e-file|electronic filing]].<ref name="Mace85">{{cite news |title=IRS test project allows electronic tax returns |last1=Mace |first1=Scott |url=https://www.nexis.com/docview/getDocForCuiReq?lni=3S51-H8N0-001K-W2WJ&csi=8399&oc=00240&perma=true |newspaper=[[InfoWorld]] |date=25 November 1985 |quote=H&R Block Inc. of Kansas City, Missouri, is the first tax preparation service to announce participation in the IRS project. Between January 1 and April 15 of next year, customers of designated H&R Block offices can use H&R Block's Rapid Refund service, said Thomas Bloch, president of tax operations for the firm. Such customers have the option of either paying H&R Block to prepare the return or bringing in one already prepared. |url-access=registration |access-date=21 February 2018}}</ref>

===Recent history===
[[File:H&R Block in Gillette, Wyoming.jpg|thumb|An H&R Block in [[Gillette, Wyoming]]]]

H&R Block acquired MECA Software, a 1980s [[Personal financial management|PFM]] company that created the TaxCut software, in 1993.<ref name="Schifrin93">{{cite news |title=H&R Block's crown jewel |last1=Schifrin |first1=Matthew |url=https://www.nexis.com/docview/getDocForCuiReq?lni=3SJB-3GS0-0019-F32C&csi=8399&oc=00240&perma=true |newspaper=[[Forbes]] |date=6 December 1993 |quote=Anderson has gotten the company moving fast in the new direction. In October, Block announced it would pay $ 44 million for ailing Fairfield, Conn.-based MECA Software, Inc., a company whose main products include TaxCut, Andrew J. Tobias' Managing Your Money and Fidelity Online Express. |url-access=registration |access-date=22 February 2018}}</ref> In 1995, H&R Block sold MECA,<ref name="Fisher95">{{cite news |title=2 banks to buy Meca Software for personal financial program |last1=Fisher |first1=Lawrence M. |url=https://www.nytimes.com/1995/05/11/business/2-banks-to-buy-meca-software-for-personal-financial-program.html |newspaper=[[The New York Times]] |date=11 May 1995 |access-date=22 February 2018}}</ref> but retained TaxCut.<ref name="NYT95">{{cite news |title=H&R Block sells personal finance software holding |url=https://www.nytimes.com/1995/03/29/business/company-news-h-r-block-sells-personal-finance-software-holding.html |newspaper=[[The New York Times]] |date=29 March 1995 |access-date=22 February 2018}}</ref>

The company began to expand in the 1990s into the financial services arena, offering mortgage loans,<ref name="Hallinan02">{{cite news |title=H&R Block faces issues with mortgage business |last1=Hallinan |first1=Joseph T. |url=https://www.wsj.com/articles/SB103706997739674188 |newspaper=[[The Wall Street Journal]] |date=12 November 2002 |quote=Bears contend that Block has limited experience in the mortgage business. It bought Option One in 1997, and Option One in Irvine, Calif., has itself been in business only since 1993. |access-date=22 February 2018}}</ref> banking and business services.<ref name="AP19Aug99">{{cite news |title=Block has first-quarter losses of $37.1 million |url=https://www.nexis.com/docview/getDocForCuiReq?lni=3X6X-7DC0-00HV-62X5&csi=8399&oc=00240&perma=true |publisher=[[Associated Press]] |date=19 August 1999 |quote=In June, Block purchased McGladrey & Pullen LLP, the nation's seventh-largest accounting firm, for $ 240 million. The company said that purchase has pushed revenue for its business services to $ 24.2 million during the first quarter, compared to $ 1.3 million last year. Including McGladrey & Pullen, H&R Block has acquired eight accounting firms since May 1998. |url-access=registration |access-date=22 February 2018}}</ref> H&R Block purchased Olde Discount Stockbrokers in 1999<ref name="AP1Dec99">{{cite news |title=H&R Block buys discount broker |url=https://www.nexis.com/docview/getDocForCuiReq?lni=3Y13-17W0-009F-S0RT&csi=8399&oc=00240&perma=true |publisher=[[Associated Press]] |date=1 December 1999 |quote=Tax preparer H&R Block has completed its $850 million purchase of Olde Financial Corp., the nation's fourth-largest discount broker. |url-access=registration |access-date=22 February 2018}}</ref> and operated as a full-service securities broker-dealer under the name H&R Block Financial Advisors. In 2008, the company sold its H&R Block Financial Advisors unit to [[Ameriprise Financial]] for $315 million.<ref name="Dealbook08">{{cite news |title=H&R Block sells brokerage business to Ameriprise |url=https://dealbook.nytimes.com/2008/08/13/hr-block-sells-brokerage-business-to-ameriprise/ |newspaper=[[The New York Times]] |date=13 August 2008 |access-date=22 February 2018}}</ref> At the time, the unit managed $30 billion in assets and employed 900 financial advisors in the U.S.<ref name="Dealbook08"/>

RSM McGladrey Business Solutions was created in 1999 when H&R Block acquired the assets of [[McGladrey|McGladrey & Pullen]], aside from its auditors and attest services which remained under ownership of McGladrey's partners.<ref name="GlobeandMail30June99" /><ref>{{cite news |title=RSM McGladrey, H&R Block, McGladrey & Pullen Expected to Announce Deal |author=Michael Cohn |url=https://www.accountingtoday.com/news/rsm-mcgladrey-h-amp-r-block-mcgladrey-amp-pullen-expected-to-announce-deal |work=[[Accounting Today]] |date=9 December 2009 |access-date=10 April 2018}}</ref> Following the acquisition H&R Block became the sixth-largest accounting firm in the U.S.<ref name="GlobeandMail30June99">{{cite news |title=H&R Block to buy McGladrey & Pullen Cash, debt deal to make tax giant 6th-largest U.S. accounting firm |url=https://www.nexis.com/docview/getDocForCuiReq?lni=4M8C-DTH0-TW7J-32B0&csi=8399&oc=00240&perma=true |newspaper=[[The Globe and Mail]] |date=30 June 1999 |quote=H&R Block Inc. announced that it is buying McGladrey & Pullen LLP, a Bloomington, Minn. accounting firm, effectively making the tax preparation giant the sixth-largest U.S. accounting firm. |url-access=registration |access-date=26 February 2018}}</ref> McGladrey had 100 offices in 25 states and offered accounting, consulting, tax services, and international business services to mid-sized companies. Through an alliance with McGladrey & Pullen and other accountancies, the Block subsidiary operated in 70 countries under the RSM International name. In 2011, H&R Block sold the unit back to McGladrey & Pullen.<ref>[http://www.bizjournals.com/triad/news/2011/12/01/McGladrey-completes-purchase.html Kansas City Business Journal | date=Dec. 1, 2011]</ref>

H&R Block hired Jeff Jones, a former [[Target Corporation]] and [[Uber]] executive, as president and CEO on October 9, 2017.<ref name="Reuters17">{{cite news |title=H&R Block names former Uber executive Jeff Jones as CEO |url=https://www.reuters.com/article/us-h-r-block-ceo/hr-block-names-former-uber-executive-jeff-jones-as-ceo-idUSKCN1B21JI?il=0 |newspaper=[[Reuters]] |date=22 August 2017 |access-date=14 December 2017}}</ref><ref name="Davis17">{{cite news |title=H&R Block taps former Uber president Jeff Jones as CEO |last1=Davis |first1=Mark |url=http://www.kansascity.com/news/business/personal-finance/article168575957.html |newspaper=[[The Kansas City Star]] |date=22 August 2017 |access-date=14 December 2017}}</ref> He replaced Tom Gerke, who was interim CEO following the retirement of former CEO Bill Cobb.<ref name="Reuters17"/><ref name="Dornbrook17">{{cite news |title=H&R Block names former Uber president as its new CEO |last1=Dornbrook |first1=James |last2=Kaberline |first2=Brian |url=https://www.bizjournals.com/kansascity/news/2017/08/22/h-r-block-ceo-jeff-jones.html |newspaper=[[American City Business Journals|Kansas City Business Journal]] |date=22 August 2017 |access-date=14 December 2017}}</ref> Jones has said he sees H&R Block as a [[financial services]] company and a [[retail]] company, and aims to grow the company.<ref name="Dornbrook17"/><ref name="Davis17"/>

H&R Block started its first Global Technology Center in India in October 2017. This was created with the vision to grow H&R Block's Product Engineering and IT Solutions Development platforms. It is located in [[Technopark, Trivandrum]], Kerala.{{citation needed|date=February 2020}}<ref>{{Cite web |title= |url=https://www.linkedin.com/company/hrb-india/}}</ref>

H&R Block announced in June 2019 that it would acquire [[Wave Financial]], a Canadian financial technology company offering bookkeeping, accounting, and payroll services for small businesses.<ref name=Otani19>{{cite news |title=Tax Prep Giant H&R Block Rides the Wave |last1=Otani |first1=Akane |work=[[The Wall Street Journal]] |url=https://www.wsj.com/articles/tax-prep-giant-h-r-block-rides-the-wave-11560282172 |date=June 11, 2019 |access-date=December 11, 2019}}</ref> H&R Block acquired Wave for US$405 million (C$537 million).<ref name=Gagliordi19>{{cite news |title=H&R Block to acquire Canadian fintech startup Wave |last1=Gagliordi |first1=Natalie |publisher=[[ZDNet]] |url=https://www.zdnet.com/finance/h-r-block-to-acquire-canadian-fintech-startup-wave/ |date=June 11, 2019 |access-date=December 11, 2019}}</ref><ref name=CP19>{{cite news |title=H&R Block buys Toronto accounting software firm Wave Financial for $537M |work=[[The Canadian Press]] |url=https://www.thestar.com/business/2019/06/11/hr-block-buys-toronto-accounting-software-firm-wave-financial-for-537m.html |date=June 11, 2019 |access-date=December 11, 2019}}</ref> Wave operates as an independent subsidiary by Wave CEO Zahir Khoja from [[Toronto, Ontario]].<ref name=Gagliordi19/>

=== Controversies ===
==== H&R Block's own taxes 2005 ====
In August 2005, H&R Block announced that it had overstated its earnings for 2003 and 2004 by $91.1 million. The company stated that it had "insufficient resources" to identify and report complex transactions in its corporate tax accounting. On February 23, 2006, the company said in its quarterly results that it had miscalculated its own state income taxes for 2005 and 2004, and that it owed an additional $32 million in back taxes.<ref>{{cite web|url=https://www.sec.gov/Archives/edgar/data/12659/000095013408012051/c27745e10vk.htm#114 |title=Financial Statements and Supplementary Data |publisher=United States Securities and Exchange Commission |access-date=2011-11-14}}</ref><ref>{{cite news| url=http://www.foxnews.com/story/0,2933,185912,00.html | publisher=[[Fox News]] | title=H&R Block Flubs Its Own Taxes | date=2011-10-21}}</ref>

==== Social Security numbers 2005 ====
In December 2005, H&R Block sent its customers free copies of its TaxCut software, and the mailing labels on the packages mistakenly included the recipients' [[Social Security number]]s. The company said it sent the promotional mailing to former customers and people whose names were taken from purchased lists. It said it is legally required to hold on to customers' tax information, including Social Security numbers, for three years. H&R Block said no customer data has been lost or stolen as a result of the mistake, and that less than 3 percent of the mailings were involved.<ref>{{cite news|url=https://www.usatoday.com/money/perfi/taxes/2006-01-04-hr-block-privacy_x.htm |title=H&R Block makes error in software mailing |work=[[USA Today]] |date=2006-01-04 |access-date=2011-11-14 |first=David |last=Twiddy}}</ref>

==== Refund anticipation loans 2006 ====
California Attorney General [[Bill Lockyer]] sued H&R Block in February 2006, alleging the company's [[refund anticipation loan]] (RAL) business violated state and federal laws in its marketing and providing of high-cost RALs mainly to low-income clients. The lawsuit also alleged Block received a "substantial portion of the loan fees", in some cases purchasing up to 49.9 percent of the loans, and further alleged that H&R Block at times held onto a customer's tax refund for purposes of paying off RAL-related debt from previous years, including that claimed by other banks or tax preparers.  The complaint stated, "Therefore, Block clients who are claimed to owe debt from a prior year are led to expect a loan, but instead find themselves in a collection proceeding."<ref>[https://oag.ca.gov/news/press-releases/attorney-general-lockyer-files-lawsuit-against-hr-block-illegally-marketing-and "Attorney General Lockyer Files Lawsuit Against H&R Block for Illegally Marketing and Selling High-Cost Loans as 'Instant' Tax Refunds"], Press release from the Office of California Attorney General, Feb. 15, 2006.</ref>

The company responded that it "believes the refund lending program is both fair and legal, and will vigorously defend against the complaint". On January 2, 2009, California Attorney General [[Edmund G. Brown Jr.]] reached a $4.85 million settlement with H&R Block, which prohibits the company from deceptively marketing high-cost refund anticipation loans as early "[[tax refund]]s". The company set aside $2.45 million in restitution for customers if they purchased a "refund anticipation loan" or a "[[refund anticipation check]]" through H&R Block between January 1, 2001 and December 31, 2008. In addition, H&R Block agreed to pay $500,000 in penalties and $1.9 million in fees and costs.<ref>{{cite news|author=Jerry LaMartina |url=http://www.bizjournals.com/sacramento/stories/2006/02/13/daily27.html |title=AG sues H&R Block over refund-anticipation loans |work=Sacramento Business Journal |date= 2006-02-15|access-date=2011-11-14}}</ref><ref>{{cite press release |url=http://ag.ca.gov/newsalerts/release.php?id=1645& |title=Attorney General Brown Reaches Agreement with H&R Block Prohibiting Deceptive Marketing of Tax Refund Loans |publisher=Office of the Attorney General, State of California Department of Justice |date=2009-01-02 |access-date=2011-11-14}}</ref> In 2011, H&R Block ceased offering RALs altogether, a move praised by consumer rights activists.<ref>{{cite press release |url=http://www.consumerfed.org/pdfs/pr_AdvocatesApplaudBlockDroppingRALs_%2091411_FINAL.pdf|title=Consumer Advocates Applaud H&R Block Decision to Forego RALs and Urge Republic, Jackson Hewitt and Liberty to Stop Making High Cost Loans |publisher=Consumer Federation of America|date= 2011-09-14}}</ref>

==== Express IRA 2006 ====
On March 16, 2006, New York Attorney General [[Eliot Spitzer]] sued H&R Block, accusing the company of deceptive marketing of its Express IRA retirement accounts. The lawsuit alleged the company assessed fees, including set-up fees, annual fees, and account closing fees that, for 85% of account holders, resulted in the account losing money.<ref>[https://money.cnn.com/2006/03/15/news/companies/spitzer_hr/index.htm Spitzer brings fraud suit against H&R Block], CNN Money, David Ellis, March 16, 2006. "... One unnamed 32-year-old from Albany, NY resident cited in the complaint opened an Express IRA account in 2002 with the minimum contribution of $300. The account earned $10.29 in interest over the past four years; the account holder paid $45 in fees over that same period of time... "</ref> However, in July 2007, a New York state judge dismissed much of the lawsuit.<ref>{{cite news|url=https://www.nytimes.com/2007/07/13/business/13block.html |title=Judge Mostly Clears Block |work=[[The New York Times]] |date=2007-07-13 |access-date=2011-11-14}}</ref> Justice Karla Moskowitz of the State Supreme Court excused Block and five of its units from the lawsuit. She let stand the portion of the complaint concerning another unit, H&R Block Financial Advisers, but dismissed allegations of common law fraud. At the time of the ruling, H&R Block said it believed the remaining assertions lacked merit and that it would appeal. On January 6, 2009, a New York state appeals court overruled trial justice Karla Moskowitz's July 2007 ruling and reinstated the lawsuit against H&R Block Inc that accused the company of fraudulently marketing Express IRA retirement accounts to hundreds of thousands of lower-income clients nationwide.<ref>{{cite news|url=https://www.reuters.com/article/idUSTRE5075Y120090108 |title=N.Y. court reinstates IRA lawsuit against H&R Block |publisher=[[Reuters]] |date= 2009-01-08|access-date=2011-11-14}}</ref> The matter was settled in 2009, and H&R Block agreed to pay $11.4 million to $19.4 million of fees to customers and $750,000 in fees and other costs.<ref name="Stempel10">{{cite news |title=H&R Block settles nationwide IRA lawsuit |last1=Stempel |first1=Jonathan |url=https://www.reuters.com/article/us-hrblock-cuomo-settlement/hr-block-settles-nationwide-ira-lawsuit-idUSTRE60348120100104 |publisher=[[Reuters]] |date=4 January 2010 |access-date=1 March 2018}}</ref>