HR Block 2006 Annual Report Download - page 25

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Tax Professional Diana Searight
DAY OF EMPOWERMENT
March 19, 2006, Gulfport, Mississippi
HELPING PEOPLE RESTORE
THEIR FINANCIAL LIVES
When Hurricanes Katrina and Rita struck
in 2005, H&R Block participated in volunteer
programs to help victims restore their
financial lives. Our associates served as
emergency financial counselors to help
survivors cope with the financial fallout
and secure living assistance. We also
helped replace lost records and, at no
charge, amended 2004 returns to enable
those in need to quickly obtain tax relief.
In partnership with Operation HOPE and the
William J. Clinton Foundation, H&R Block is
helping lower-income hurricane survivors
understand and benefit from the Earned
Income Tax Credit. Our tax professionals
prepared free or discounted returns for
them in our offices and at several regional
“Day of Empowerment” events, which also
included H&R Block financial seminars
and counseling. CEO Mark Ernst joined
former President Clinton in announcing
the launch of the partnership.
23
TAX BENEFITS, SAVINGS INCENTIVES AND MORE
We start by helping LMI clients claim all of the tax benefits they’re entitled to receive,
especially the federal Earned Income Tax Credit (EITC) designed to lift working families out
of poverty. In recent years, H&R Block has provided tax services to about one of four EITC
recipients. The government estimates that up to 25 percent of those eligible do not claim
the EITC due to a lack of awareness or application complexities. To address this, we partner
in educational outreach programs in over 60 cities with government and nonprofit groups,
including Operation HOPE (a national provider of financial literacy and economic
empowerment programs) and the Association of Community Organizations for Reform
Now (ACORN). Among other initiatives, we’ve joined with labor unions during the last two
tax seasons in the New York City EITC Coalition - EITC Pilot Project, providing coupons for
discounted tax preparation to qualified families. We similarly collaborate on multiyear
initiatives with the cities of Miami and San Francisco on innovative EITC outreach programs,
discounted tax preparation, and, in San Francisco, a local version of the federal EITC.
We’ve helped our clients claim about $750 million in benefits from the federal Retirement
Saver’s Credit, which matches eligible low-income taxpayers’ retirement contributions.
Since inception of the credit for tax year 2002, we have helped 4.5 million clients (more
than 20 percent of all claimants), many choosing our Express IRA to begin saving for their
future. In St. Louis, H&R Block has partnered for two tax seasons in the Pew Charitable
Trusts’ landmark Retirement Security Project. Results of this savings policy study so far show
that a simple savings vehicle, incentives and professional assistance can spur savings by LMI
taxpayers. Our retail tax offices have participated in the field research, and we provided the
matching funds to test the effectiveness of different levels of matching savings deposits. In
addition, we support The Aspen Institute’s Initiative on Financial Security – including active
service by H&R Block CEO Mark Ernst on the Advisory Board – in creating new policies and
product recommendations that help Americans save, invest and own.
We support financial education and literacy programs for LMI taxpayers. For our own tax
clients, our tax preparation software creates a free, personalized H&R Block Advantage
Report. This points out government benefits the taxpayer may be eligible to receive, including
free or low-cost children’s health insurance, job training, home energy assistance and
prescription drug discounts for seniors. Food stamp eligibility has been a primary focus for
us. We provide advice nationwide, print applications in 12 states, and have been testing
electronic enrollment of California clients. Food stamp officials have reported that calls to
them skyrocketed after our referrals began in 2003.
To help LMI clients afford financial services, we are developing transaction accounts, debit
and ATM cards, and check-cashing alternatives that lower costs of service versus traditional
financial industry offerings.