Businessweek

H&R Block, Inc. provides tax preparation and banking services. Tax Services The Tax Services provides assisted income tax return preparation, digital tax solutions and other services and products related to income tax return preparation to the general public primarily in the United States (U.S.), and also in Canada and Australia. This area also offers financial services, including the H&R Block Prepaid Emerald MasterCard and Emerald Advance lines of credit through H&R Block Bank (HRB Bank), along with other retail banking services. HRB Bank also offers traditional banking services, including checking and savings accounts, individual retirement accounts and certificates of deposit. Tax Returns Prepared: The company, together with its franchisees, prepared 25.6 million tax returns worldwide during fiscal year 2012. Franchises: The company offers franchises as a way to expand its presence in certain markets. Its franchise arrangements provide with certain rights designed to protect its brand. Most of the company’s franchisees receive the right to use software, access to product offerings and expertise, signs, specialized forms, advertising and initial training and supervisory services. In fiscal year 2012, the company operated in 10,992 offices across the U.S. Service and Product Offerings: In addition to retail offices, the company offers digital tax preparation alternatives. It also offers clients options for receiving their income tax refund, including a check directly from the Internal Revenue Service (IRS), an electronic deposit directly to their bank account, a prepaid debit card or a refund anticipation checks (RAC) offered through HRB Bank. Online Tax Preparation: The company offers a range of online tax services, from tax advice to complete professional and do-it-yourself tax return preparation and electronic filing, through its Website at www.hrblock.com. The services available at this Website allow clients to prepare their federal and state income tax returns using the H&R Block At Home Online Tax Program, access tax tips, advice and tax-related news, and use calculators for tax planning. The company participates in the Free File Alliance (FFA). This alliance was created by the tax return preparation industry and the IRS, and allows qualified filers with adjusted gross incomes of less than $57,000 to prepare and file their federal return online. Software Products: The company develops and markets H&R Block At Home income tax preparation software. H&R Block At Home offers a step-by-step tax preparation interview, data imports from money management software, calculations, completion of the appropriate tax forms, error checking and electronic filing. Its software products may be purchased online, through third-party retail stores or via direct mail. RACs: RACs are offered to U.S. clients who would like to receive their refund faster and do not have a bank account for the IRS to direct deposit their refund, and/or have their tax preparation fees paid directly out of their refund. Emerald Advance Lines of Credit: Emerald Advance Lines of Credit are offered to clients in offices from late November through early January each year. H&R Block Prepaid Emerald Mastercard: The H&R Block Prepaid Emerald MasterCard allows a client to receive a tax refund from the IRS directly on a prepaid debit card, or to direct RAC proceeds to the card to avoid high-cost check-cashing fees. The card can be used for everyday purchases, bill payments and ATM withdrawals anywhere MasterCard is accepted. Peace of Mind Guarantee: In addition to standard guarantee, the company offers Peace of Mind (POM) guarantee to U.S. clients, whereby it represents clients if they are audited by the IRS, and assumes the cost, subject to certain limits, of additional taxes owed by a client resulting from errors attributable to one of tax professionals’ work. CashBack Program: The company offers a refund discount (CashBack) program to customers in Canada. This program is financed by short-term borrowings. Seasonality The company’s clients file their tax returns during the period from January through April of each year,