Excluding 2008 Economic Stimulus Act (ESA) rebate filers, total returns prepared through March 15 were down 3.2 percent over the prior year.

 

Retail returns prepared year-to-date through March 15, 2009 fell 6.2 percent compared to the prior-year period, while net average retail fees increased 7.9 percent.  Pricing growth is being driven by a combination of higher complexity of tax returns prepared, a shift in client mix to higher adjusted gross income levels, planned pricing increases and lower discounts.

 

Total digital returns prepared through March 15, 2009 were up 5.1 percent over the prior year, driven by a 21.6 percent increase in returns prepared using software and H&R Block Online, excluding returns prepared through the Free File Alliance (FFA).   Total returns prepared using H&R Block Online alone increased by nearly 700,000, or 54 percent, due in part to migration from FFA.

 

There continues to be a slight shift from assisted to do-it-yourself tax preparation methods this year, compared with recent years when aggregate assisted preparation grew modestly.  The Company believes this shift is primarily driven by increased price sensitivity of clients due to current economic conditions. 

 

H&R Block plans to release interim results through April 15 for its U.S. tax operations on April 24, 2009.