H&R Block, the nation's largest tax preparer, said its outside counsel received a notice of the formal order of investigation from the SEC on Thursday. The order concerns disclosures made in and before November 2002, the company said.

The Kansas City, Mo.-based company has fought, and in some cases has settled, several class-action lawsuits that charge it misled its clients when it did not disclose the true costs of the short-term "refund anticipation" loans, offered to customers awaiting income tax refunds.

H&R Block said it intends to cooperate fully with the SEC.

News of the investigation came the same day the company forecast a smaller-than-usual increase in the number of people filing tax returns next year because of the country's unemployment rate.

H&R Block chairman, chief executive and president Mark Ernst said the Internal Revenue Service recently lowered the expected increase in tax filers to 0.5 percent from the usual 1.5 percent growth rate.

"And we understand why they'd say that," he said. "Our analysis of the impact of the economy has us seeing the same thing. While overall economic numbers are picking up, the employment numbers haven't improved dramatically."

Ernst also said the company's marketing message last year failed to drive as many tax filers into H&R Block offices as it expected. H&R Block doesn't want that to happen again this tax season, and has revamped its approach.

The new message focuses on a client's entire financial health, not just taxes, "and how H&R Block can help them through challenging financial times and what (clients) can do today to improve their financial life," Ernst said.

H&R Block has been expanding its business line beyond taxes for several years. The company also has a mortgage business, a financial advice business and an accounting, tax and consulting business.

H&R Block also has also expanded its distribution. It inked a deal with Wal-Mart Stores Inc. in September to put tax-preparation offices in some Wal-Mart stores, and will begin opening those offices on Jan. 15, Ernst said.

H&R Block shares rose 3 cents to close at $51.72 Friday on the New York Stock Exchange.