Competitors H&R Block and Jackson Hewitt Tax Services will experience declines in number of tax returns prepared in the 2010 tax season, with the latter tax preparation facing challenges because of its inability to get full funding for its Refund Anticipation Loan program, John Hewitt, CEO of Liberty Tax, predicted this week. Hewitt also said that mom-and-pop stores, which have been grabbing market share "for most of the Twenty-First Century" would at least break even this year.

WASHINGTON - A CPA based in Houston has been suspended from practice before the Internal Revenue Service for 12 months for providing false or misleading information in connection with the preparation of client tax returns. The Office of Professional Responsibility took the action against CPA Robert A. Loeser who it said assisted clients in claiming false business expenses on tax returns he prepared. Read more...

RSM McGladrey, a subsidiary of H&R Block, and McGladrey & Pullen, have agreed to a split the net income from the RSM operations with the Block unit getting two third and M&P one third of the bottom line. The parties, which renewed their relationship in December, have also agreed to change compensation arrangements, which were not spelled out.