First Intuit, now Block? The Internal Revenue Service says a glitch in which it called a "limited number of software company products" affected about 660,000 returns that claimed educational credits. The problem could delay refunds by as much as six weeks. And while the IRS did not identify which software was involved, H&R Block has been informing customers about problems with Form 8863.

A federal court has refused to grant a preliminary injunction that would halt airing of some Intuit television ads. The decision was issued by the U.S. District Court for Western Missouri regarding the action filed by H&R Block. The tax services chain alleged unlawful misuse of the H&R Block brand and trademark along with unfair disparagement of its tax professionals in TurboTax ads.

The Internal Revenue Service his disbarred a Seattle, Wash.-area Enrolled Agent for stealing a client's tax payments and preparing returns with phony deductions for several clients. The Office of Professional Responsibility revoked the EA status of Lorna M. Walker and barred her from preparing federal tax returns for at least five years in a default judgment.

In a season plagued by serious software issues, the situation has apparently improved for some who purchased the rewritten TaxWorks application. But for those suffering the woes of ATX from CCH Small Firm Services, there are fewer indications that things have gotten much better. Among both groups there are still reports of serious performance problems, clogged or unhelpful tech support and those who have abandoned their initial software to be able to conduct business for tax season.