H&R Block And Big Tax Returns

H&R Block has a definite strategy to getting significant tax returns. The company only markets to clients in certain tax brackets. Tax preparation services tend to be the most profitable when preparers sell them to people in specific socioeconomic brackets. H&R Block has been taking specific steps to exclude low-income potential customers for tax filing.

H&R Block

The company has recently pared down its free tax filing service and changed its online tax preparation packages to make them cost more money for fewer services. More types of tax returns fall into categories that are more expensive at H&R Block compared to some other tax preparers. Preparers have referred to these potential clients as “low-loyalty.”

Consultants have examined these practices and found that H&R Block’s clients fall into four general categories. The category known as the “lower right box” consists of clients whose tax returns require a good deal of paperwork but give little profit potential to the tax preparation company. H&R Block has been actively taking steps to discourage this group of filers from doing business with them.

As a result of the company’s efforts, profits have climbed by 4% during the last fiscal year while the number of prepared at tax returns has fallen by 6.2%. The tax preparers at H&R Block have also had additional time to prepare the returns of higher income clients. The company has also spent 12% less on marketing and advertising. The CEO has expressed that the company has met exact goals with these tactics.

The tax preparation company H&R Block has seen a profit boost of approximately $500 million, but these tactics also represent a risk to H&R Block’s image. By excluding lower earners, the business may not get any clientele from this population segment when they eventually earn more and move into different tax brackets.

Finding Free Tax Tips For Your Taxes

Free Tax Tips

No one wants to make a mistake when filing his or her taxes to the federal government. Unfortunately, filing on your own can be a bit difficult. If you want to file correctly, you probably want to take the time to look at free tax tips. Below are a couple sources of free tax tips for your 2013 or 2014 filings.

One of the best places to start looking for tax tips is always with the IRS (www.irs.gov). Not only is this the official source for tax information in the United States, but its tips are actually quite easy to follow. If you want a bit more information, it might be useful to take some time to look at some of the tax processing sites out there. Sites like TaxAct (www.TaxAct.com) and TurboTax (www.turbotax.com) have a great deal of filing information available even for those who do not choose to use the services. If you want to go straight to a trusted information source for even more, though, you might want to check out CNNMoney (money.cnn.com) for information when it gets closer to tax time.

If you are looking for more traditional sources, large tax processing services like H&R Block tend to have information about filing taxes available around tax time. In fact, it may be possible for you to get a quick class on how to file your own taxes from a similar giant, or even from a local tax accountant. Free classes tend to pop up around January each year, so taking the time to look at these information sources can be helpful.