Block also noted plans to become an active franchisor again by turning 300 company-owned stores into franchise operations.

Factors in the decision to sell the company stores to franchisees included the fact that franchised operations historically have grown faster than the company-owned stores. Smyth said that Block also sees opportunities for opening stores in the New York and Los Angeles areas because its penetration there is about half the national average. Smyth also predicted Block could get 400,000 to 500,000 additional tax clients through better execution. The economy called the chain to have its biggest client losses among the segments with lower adjusted gross incomes. To regain these, Block plans what Smyth called "targeted price value offers" during the next tax season.

For the most recent quarter, H&R Block lost $133.6 million, compared to $132.7 million in red ink a year earlier. Revenue for the most recently ended quarter was $275.5 million, up from $271.9 million a year ago.

Bob Scott

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Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind