H&R Block Penalized $500,000 for Deceptive Advertising

A federal judge assessed a penalty of $507,477 against H&R Block for misleading advertising. The ads in question promised rapid refunds, and a check in the amount of your refund, without specifically disclosing that the company's Rapid Refund program is actually an interest-bearing loan against a taxpayer's anticipated refund.

The law suit was brought by the Virginia firm of Liberty Tax Service of Virginia Beach, Virginia, a company that felt the H&R Block ads were targeting the company's service in its roll-out year.

The court determined that the ads violated an Internal Revenue Service mandate which states that clear disclosure is required for programs that provide loans against anticipated refunds.

In addition to paying the fine, H&R Block is barred on a national level from making misleading ads about refund anticipation loans.

You may like these other stories...

Ernst & Young 2013 audit deficiency rate 49%, regulators sayMichael Rapoport of the Wall Street Journal reported on Thursday that the Public Company Accounting Oversight Board (PCAOB) found deficiencies in 28 of the...
Some of your clients may get away to business conventions from time to time. It gives them a chance to rub shoulders with colleagues, catch up on the latest developments, and fine-tune their skills. And, when the meetings or...
PwC must face $1 billion lawsuit over MF Global adviceA federal judge on Wednesday ordered PricewaterhouseCoopers (PwC) to face a $1 billion lawsuit claiming that its bad accounting advice was a substantial cause of the...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.