A tax refund won't be the only reimbursement some customers receive from H&R Block this year. New York Attorney General Andrew Cuomo announced on Jan. 4 a settlement with the tax preparer over money-losing IRAs it marketed and sold to consumers.
Express IRAs carried fees that were higher than the interest they earned--advertised as "great" though at times it totaled less than 1 percent. Since 2000, H&R Block sold more than 600,000 of the IRAs, 85 percent of which lost money. The accounts were primarily marketed to low- and middle-income clients.