2/28/2006

Mess Up

H&R Block (a company that helps people prepare their taxes) made an embarrassing confession that they goofed up on their own taxes. They owe $32 Million in back taxes and lost 250,000 clients. Apparently there was a software issue that made it impossible for some H&R Block offices to process taxes.

6 comments:

Ella said...

Although embarrassing, at least H&R Block was willing to admit that a mistake had been made. Too many companies are often caught trying to cover up similar incidents. No doubt H&R Block has lost some profits and customers, but an exposed cover up would likely destroy the entire company.

Dr. Tufte said...

-1 on Ole's post for no title.

Gee ... do you think this should encourage people to consider simplifying the tax code? Do you find a it a bit disturbing that there isn't more being said about that?

Ole said...
This comment has been removed by a blog administrator.
Ole said...

I see a title up there.

parker said...

I am glad to hear that H&R Block has faced such consequences for its actions. I will never understand how a company which one pays to prepare their taxes can later pass some liability back to the consumer if the taxes were prepared incorrectly resulting in fees. I am with Dr. Tufte in simplifying the tax code. I feel like tax preparation has become a modern day form of the emperors clothing in which those involved must constantly be telling the masses that there is actual benefit in what they do in order to prevent the law from being changed which would result in a better system for the majority of people.

zoe said...

I appreciate that fact that H&R faced the cold hard truth, they made a mistake. Although they did lose customers, in the long run, this should not hurt the company; whereas if they had tried to cover the mistake and then it was made public, a much larger problem would arise. Relate this to the Tylnol crisis of Johnson & Johnson in the 1980's. They too faced the facts that they had a horrific problem and owned up to it, and have come out stronger in the end.