Press Release Details

Discounted Services, Low Cost Banking Fees Highlight Partnership

to Help Low-Income New Yorkers Make Healthy Financial Choices

KANSAS CITY, Mo.--(BUSINESS WIRE)--Feb. 12, 2007--H&R Block (NYSE: HRB), Robin Hood and a leading non-profit, FoodChange have announced a new program to offer affordable professional tax preparation and banking services to tens of thousands of low- and moderate-income New Yorkers. Through this innovative partnership, more people will receive all of the tax benefits to which they are entitled, which means more money back at tax time. Further, by discounting tax preparation and waiving banking fees, H&R Block, Robin Hood and its affiliates will help people make smart, healthy financial choices that can directly improve their financial condition for years to come - not just at tax time.

The program will provide much needed help for New York's low-income individuals and families. In tax season 2006, Robin Hood affiliates prepared about 70,000 Volunteer Income Tax Assistance (VITA) returns. FoodChange, the largest affiliate, prepared about 40,000 free tax returns in the NYC area, and the organization is playing a key role in this new partnership. H&R Block is an active participant in the IRS VITA Program, which offers free tax help to qualified low-income individuals.

"Robin Hood is committed to finding sustainable solutions to the problems facing low- and moderate income-families in New York City," said David Saltzman, executive director of Robin Hood. "This unique partnership with H&R Block creates three key opportunities. First, it improves our ability to create awareness and connect people to the benefits to which they are entitled. Second, it illustrates the scale and infrastructure so that we may continue to find the most effective ways to help people in need. Finally, it creates a model for other companies, non-profits and foundations that wish to work together to reduce costs, improve access and provide improved social services for low-income families."

Bernie Wilson, H&R Block vice president, added, "We believe this relationship has the opportunity to transform how low-income individuals access critical services such as tax preparation, government benefits and banking services. We commend Robin Hood and FoodChange on their leadership, innovation and willingness to openly re-evaluate how these types of services should be offered and funded. This effort is one of many H&R Block initiatives taking place this tax season throughout the country that will help place better, healthier, smarter financial services within the reach of millions of lower income Americans."

Highlighting the effort by Robin Hood and related affiliates to provide low-income residents of New York City with access to affordable tax preparation and financial services, H&R Block has agreed to provide a 50 percent discount on its tax preparation fee for federal, state, and city current year individual income tax returns with a maximum charge of $75. H&R Block also agrees to waive all set-up and re-contribution fees for their Easy Savings and Easy IRA accounts. Last year, H&R Block announced these two new savings accounts that enable clients to turn their tax refunds into savings. At 5.25 annual percentage yield (APY), H&R Block's new Easy Savings Account and Easy IRA offer among the highest rates of return in the country for FDIC-insured deposits.

The 50 percent discount coupons will be distributed to those clients seeking service at free tax preparation sites who make too much income to qualify for the service or who are not able to be served when a site is at capacity. FoodChange, a New York City-based nonprofit, operates 10 community tax sites in all 5 boroughs and has been the largest Volunteer Income Tax Assistance program in the US for the past three years. "We often see clients who make just enough to not qualify for free service but not enough to afford expensive tax preparation. We are also unable to serve many thousands because we simply do not have enough space or volunteer preparers to meet demand," said P.J. Kim, Director of Income Policy at FoodChange. "This agreement allows these clients to have an affordable commercial option that promises some consumer protection. We look forward to exploring additional ways that we can increase education around the EITC and other means-tested work supports, such as food stamps and government health insurance. H&R Block's technology expertise and market knowledge will play a crucial role in helping more low income workers receive free or discounted financial services and government supports that will benefit entire communities."

"H&R Block is part of this community, and it is both our commitment and our obligation to help people improve their financial outlook by providing affordable, professional advice services and products that make sense," said Sonia Perez, an H&R Block tax professional in New York City. "Every Block tax professional wants to know that the help we provide is making a difference, and through partnerships like this one, we can help our clients leave our desk in better financial shape than when they came in."

About H&R Block

H&R Block seeks to serve as its clients' tax and financial partner. Over the last several years the Company has developed and introduced numerous innovations to help working families choose healthier financial alternatives, get more of the benefits to which they are entitled and help create the ability for individuals and their families to become more financially secure and independent. H&R Block is the world's largest tax services provider. Having prepared more than 400 million tax returns since 1955 the company pioneered e-filing and consistently helps approximately 25 percent of those families who claim the Earned Income Tax Credit each year. In 2005, that represented over $10 billion, an average of about $1,800 per family.

CONTACT: H&R Block
Denise Sposato, 816-854-4547 dsposato@hrblock.com
or
Robin Hood
Linda Shockley, 212-844-3575
shockley@robinhood.org
or
FoodChange
P.J. Kim, 917-509-3967
pjkim@foodchange.org

SOURCE: H&R Block