More specifically, he was told that his services were no longer needed: Here is the […]
Tag: H&R Block
Desperate Company Sears Teams with Desperate Company H&R Block to Offer Desperate People Free Tax Prep Services
Okay so maybe Sears isn't "desperate" but they did announce 100+ would be closed this […]
McGladrey Is Glad to Have McGladrey Back, Says McGladrey Partner
Back in August, we learned that 1040 factory H&R Block was putting RSM McGladrey (aka McGladrey) out to pasture. By all accounts, H&RB was pretty excited to get rid of RSM (aka McGladrey), as the business was a bit of a drag on the rest of the company.
Crain’s reports that the deal finally closed today and at least one McGladrey (aka McGladrey) partner is equally excited to have their old RSM (aka McGladrey) back:
The move means the reunited McGladery, which has 6,500 employees—600 of them in New York—should be better positioned to compete against such industry-leading firms as PriceWaterhouseCoopers and Deloitte. “We are a great alternative to the Big Four,” said Tom Ferreira, who heads McGladrey’s Northeast practice. […] “We’re happy to be independent again, all together under one roof,” he said.
Your loss, H&RB (not aka McGladrey).
H&R Block Was Pretty Eager to Dump RSM McGladrey
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This morning we learned that H&R Block would be selling RSM McGladrey to McGladrey & Pullen for $610 million. This reunion of the two firms is interesting because just a couple of years ago they couldn’t stand the sight of one another. These days, you might conclude that since they opted to rebrand under the name “McGladrey” that everyone has kissed and made up but we all know better.
In all likelihood, there are partners on both sides who would rather set their CPA certificates on fire than work with the other side. The problem for the partners in these firms is that they probably had little choice in the matter, as H&RB seemed intent on cutting off the weak link:
[T]he top U.S. tax preparer looks to jettison the underperforming division and focus on its core business. H&R Block will finance about $65 million of the deal value as it looks to push through the sale of RSM McGladrey.
[…]
In June, H&R Block’s new Chief Executive William Cobb told analysts that RSM’s falling profit and revenue were a drag on the company’s earnings, and that the unit and its troubles were on his “radar screen.”
“(The sale) should improve overall corporate margin, as Tax Services margin in FY11 was 27.1 percent and RSM McGladrey’s was 9.3 percent,” Oppenheimer analyst Scott Schneeberger said in a note to clients.
And despite the Blockheads eagerness, the gang at M&P seems perfectly okay with it. From the firm’s press release:
“The Board’s objective is to reunite the assurance, tax and consulting practices under an integrated McGladrey & Pullen partnership structure,” said Jerry Bourassa, Chairman of McGladrey & Pullen’s Board of Directors. “The anticipated transaction will not impact the quality and timeliness of services to our clients. Our partners and employees remain focused on meeting and exceeding client expectations.”
[…]
“This is all about what we believe to be in the best interests of our clients, our employees and our partners. We see great opportunities for success and growth for McGladrey & Pullen as a firm reunited in a traditional partnership structure,” said Joe Adams, Managing Partner of McGladrey & Pullen. “Our relationship with H&R Block has served us very well but we both agree that it is time to move on.”
So it sounds like there may be cake and punch but it probably won’t be a lively affair.
Of course we’d rather hear from the people on the ground (i.e. the McGladrey partners, employees, Natalie) about what they make of this shitstorm. I can’t imagine anyone missing the used car dealership of the tax prep world but is this reunion going to work? Will C.E. and the gang now be able to turn Mickey G’s into the next accounting powerhouse? Can we get one name for the combined firm, for crissakes? All important questions. Please enlighten us below.
H&R Block to sell consulting unit for $610 mln [Reuters]
McGladrey & Pullen, LLP signs letter of intent to acquire RSM McGladrey, Inc. [McGladrey]
H&R Block Founder Reminds Reporter That’s He’s Poor, Not Sure Why He and the Rest of Middle Class Aren’t Foaming at the Mouth
Earlier this week we were reminded that Warren Buffett is tired of being coddled and paying a lower tax rate (as a percentage of his total income) than his secretary. President Obama, not one to ignore an opportunity, called attention to WB’s comments that rich people should be paying more taxes while he was on the stump in Minnesota.
On the other side, Grover Norquist, who has never met a tax he didn’t hate, offered up a Twitter rebuttal suggesting that the Oracle shut his Blizzardhole and cut the check to Tim Geithner.
Now another fairly well off dude, H&R Block co-founder Henry Bloch has come out in agreement with Buffett, telling the Kansas City Fox affiliate that “[the] current tax code gives too many breaks to the rich.” Bloch, a registered Republican also takes issue with the notion that rich people create jobs, saying that’s “baloney” and that “Rich people don’t create jobs. Companies create jobs.”
Bloch continued on his rant, wondering why the peasants are taking this so well and then reminded the reporter interviewing him that he was one of those people.
Bloch says the middle class should be furious that the rich pay so little in taxes, hiding money in trusts and with their kids. “You probably pay a higher rate than I do… and yet my income is probably many times what yours is.” Bloch said to FOX 4 Reporter Rob Low.
Unconfirmed reports have indicated Mr. Low then hung his head in shame while Bloch’s stepped away to maintain the space between them.
The Middle Class Should Be Furious, Another Millionaire Says [Fox4KC]
A Faux-Rapture Occurred at an H&R Block in Orange County
Of course it was on the Sunday after the failed Rapture (maybe postponed?) which made this woman not only crazy but quite tardy.
Suspicious person/circumstance. 3:39 p.m. Sunday. 22400 block of Antonio Parkway. A woman was seen in front of H&R Block, saying that she is Jesus and dancing around.
[via OCR]
Would Hannibal Lecter Eat His CPA?
Hard to say. But “Blockheads” would need to be careful.
It might have been funny if there had been glass in the window and our actor hit his head on it but otherwise we’re especially glad they didn’t involve any scenes with Miggs.
Heir to H&R Block Fortune Is Ready to Pay Higher Taxes
Tom Bloch is so ready in fact that he wants his to go up first.
“Congress will have no choice, in my opinion, but to raise taxes sooner rather than later.
“I also believe that the rich are significantly under-taxed compared to the middle class. That’s why I suggest that raising taxes on the very wealthiest taxpayers must be the first step toward restoring equity in our income tax system and ensuring the financial security of our children’s future.”
US taxes are too low, should be raised: H&R Block heir [PhillyDeals]
Jackson Hewitt Doesn’t Appreciate the Implication That They Suck at Preparing Tax Returns
Call it the discount 1040 wars (or something):
Jackson Hewitt Tax Service Inc sued H&R Block Inc to stop a new advertising campaign that it said misleads customers about tax refund loans and disparages Jackson Hewitt’s competence.
How disparaging? How about “two-thirds of the tax returns are wrong” disparaging:
According to the complaint, H&R Block falsely claimed that its “Second Look Review” program, which reviews past tax returns prepared by rivals, found that two-thirds of prior returns prepared by Jackson Hewitt contained mistakes.
“H&R Block’s 2 out of 3 claim necessarily implies the false claim that two out of three Jackson Hewitt customers who are entitled to refunds have been short-changed due to Jackson Hewitt errors or incompetence,” the complaint said.
Area Man Steals Car After Learning About His Brother’s Crappy Tax Refund
Allegedly! Knowing the city of Lincoln, Nebraska like we do, it’s entirely possible that these two bros were simply still not over the Husker football team’s dismal display in the last two games of the season and this shitty refund was simply the kernel that busted the storage bin.
Lincoln police said one man was arrested after he refused to leave H&R Block when he became upset with his tax refund. And the man’s brother is accused of stealing an employee’s vehicle, according to police.
Authorities were called when Joshua Brown, 26, refused to leave the H&R Block on O Street. They said he was upset with his refund and insisted on talking with all the tax professionals in the building. Officers said they removed him from the property and cited him for trespassing and fail to disperse.
A half-hour later, officers said they were called back to the same business regarding a stolen Ford Explorer. An employee found her car and keys missing, police said.
Officers said Brown was inside the business with his brother, 31-year-old Michael Medina. Police said they found the Ford Explorer in the parking lot across from the brothers’ apartment on 10th Street. Police said Medina was arrested on auto theft charges.
Police: Man Upset With Tax Refund, Brother Charged With Auto Theft [KETV]
Accounting News Roundup: The End of Summers; KPMG Adds More Restructuring Talent; Back to Basics | 09.22.10
Summers exit lets Obama retool team and message [Reuters]
“The departure of economic adviser Larry Summers opens the way for President Barack Obama to shake up leadership of his economic team and show he is taking seriously growing public frustration over the sluggish economic recovery.
Whoever replaces Summers ions constrained by a record $1.47 trillion budget deficit and the possible Democratic loss of control of the House of Representatives in November 2 congressional elections.”
The Obama Tax Plan: Who’s in the Crosshairs? [TaxVox]
“President Obama’s plan to raise taxes on the nation’s highest income households may not quite mean what you think. A closer look suggests that fewer people may get whacked than either Obama or his Republican critics suggest. And for many of the victims, the club won’t be the president’s plan to raise rates to 36 percent and 39.6 percent. Those rate hikes may be getting most of the attention, but the real cudgel would be higher taxes on capital gains and dividends going to high-earners.”
H&R Block Announces New Chief Financial Officer [MarketWatch]
“H&R Block (HRB 12.82, -0.08, -0.62%) announced today the appointment of Jeff Brown as chief financial officer. Brown has been the company’s interim CFO for the past five months. As an eight-year veteran of H&R Block, Brown has played an important role in a variety of financial functions.
‘I am very pleased with the leadership Jeff has provided me and the organization in his interim role,; said Alan Bennett, H&R Block’s president and chief executive officer. ‘Jeff has all the talent and personal characteristics needed to be highly successful as the permanent CFO. He has earned my full confidence, as well as that of the board of directors.’
Most recently, Brown served as H&R Block’s corporate controller. Prior to that, he was the corporate controller and vice president of finance (Americas) at Bacou-Dalloz, now Sperian Protection, and served in key positions at KPMG. Brown has a business administration degree from the University of Nebraska and is a certified public accountant.”
Sentencing of Petters’ accountant is postponed [Minneapolis Star-Tribune]
“Tuesday’s scheduled sentencing of James Wehmhoff, the accountant who helped Tom Petters file false tax returns, has been postponed until sometime in October. The postponement was ordered by U.S. District Judge Richard Kyle at his own behest.
Wehmhoff faces a prison sentence of between 70 and 80 months on tax charges, but federal prosecutors have asked Kyle to consider Wehmhoff’s cooperation in the Petters investigation and his previously “unblemished” career before he hooked up with Petters Group Worldwide. The government also noted that Wehmhoff was not part of the $3.65 billion Ponzi scheme that Petters and others orchestrated for more than 10 years.”
KPMG Continues to Add Restructuring Talent With Appointments of Tony Murphy, Tom Bibby [PR Newswire]
The House of Klynveld must be counting on more companies falling prey to their massive debt loads with the appointment of Tony and Tommy who both have “proven track records” as restructuring professionals.
Accounting Basics: A Guest Post From Robert B. Walker [Re:The Auditors]
“[New Zealand] follows an American model in which people who are to become accountants are ‘educated’ in Universities. There is minimal emphasis on double entry. Most of the courses are dedicated to theory, bullshit sociology, complex management accounting, auditing and so on. None of this makes any sense to a student if they first do not know the basics of accounting and that can only be gained by actually practicing the discipline.”
Comparing the Ethics Codes: AICPA and IFAC [JofA]
“Sharp increases in the number of multinational audits being performed by U.S. accounting firms means that more CPAs are performing services under the International Federation of Accountants (IFAC) audit and attest standards. Although auditors must comply with the specific standards adopted in each jurisdiction, familiarity with IFAC’s International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants (IESBA Code) in addition to the AICPA Code of Professional Conduct (AICPA Code) is a critical first step. When specifications differ, members should comply with the more restrictive of the applicable standards.”
Accounting News Roundup: Herz Departure Is a Gift for Banks; American Apparel Blames Deloitte for Late Filings; Your Commute Isn’t That Bad | 08.25.10
Herz Leaving Marks Boon for Banks [WSJ]
“A new front has opened up in the war over mark-to-market accounting. Suddenly banks find themselves with an unexpected advantage in the fight over how they should value their vast holdings of financial instruments.
T rprise announcement Tuesday of the departure of Robert Herz as chairman of the Financial Accounting Standards Board. This will give banks an opportunity to push for a successor who is more friendly to their views on the mark-to-market question, as well as the overall idea that accounting should be for more than just investors.”
Former Chief Accounting Officer for Beazer Homes USA, Inc. Indicted on 11 Criminal Counts [FBI]
Michael Rand didn’t have a very good day yesterday.
Block ramped up federal lobbying efforts in second quarter, report says [AP]
H&RB lobbied their asses off from April to June spending $500k talking the ears off at the IRS, Treasury and SEC.
American Apparel Works To File Late 10-Q Before Nov 15 [Dow Jones]
The NYSE has put Dov & Co. on notice that they best get their act together if they don’t want to be sent slumming with the pink sheets. The company is promising to pull things together and if it weren’t for Deloitte quitting, everything would be a-okay.
Fact Checking Minority Leader Boehner’s Claims on “Small Business” and the “Bush” Tax Cuts [Tax Foundation]
In case you didn’t hear, John Boehner suggested that the President fire his entire economic team. Boehner is of the opinion that letting the tax cuts expire will hurt small businesses, citing the Joint Tax Committee. Tax Foundation takes exception with this, saying that the Ohio Congressman and House Minority Leader is misrepresenting the findings of the JTC:
“First off, the businesses that JCT is referring to are not necessarily ‘small.’ Saying the word ‘small business’ sounds good to the electorate because it brings up an image of a mom and pop store on Main Street America. But plenty of large businesses, as defined by net income or gross receipts, file their taxes under the individual income tax as opposed to the corporate income tax. Merely because a business is paying individual income taxes as opposed to corporate taxes does not mean it is ‘small.’ “
Statement From Chairman Schapiro on Financial Accounting Foundation Developments [SEC]
“I commend the Financial Accounting Foundation for its ongoing efforts to evaluate and improve the effectiveness and efficiency of the structure and operation of the Financial Accounting Standards Board by increasing the size of the Board. The Foundation has determined that this revised structure will facilitate the continuing efforts of the FASB to work with the International Accounting Standards Board on their important convergence work plan. In addition, this should enhance the ability of the FASB to address issues facing the U.S. capital markets and the needs of investors.
“I also would like to commend FASB Chairman Robert Herz for his more than eight years of service. During his tenure, Chairman Herz has served as an effective investor advocate to improve the quality of financial reporting standards around the world. I welcome the appointment of Leslie Seidman as Acting Chairman. During this interim period, I look forward to working with Acting Chairman Leslie Seidman and the FASB as they continue their important work.”
Twenty something day-trader nailed with $172M bill in back taxes, asks ‘What’s the IRS?’ [NYDN]
How does a barely surviving Spaniard end up owing over $170 million to the IRS? For starters, he really doesn’t owe the Service the money. The problem arose because he didn’t file a tax return for one year that he spent day trading. The Service concluded that he made $500 million.
China Traffic Jam Could Last Weeks [WSJ]
Today, be thankful for your commute. No matter how bad it was, at least the drive/ride ended.