[span class="articleDEK"]TaxCut software maker restates its results after discovering it miscalculated its state income taxes by $32 million.
[/span]Red Herring reports tax preparation giant H&R Block, manufacturer of TaxCut and other tax software, [a href="vny!://www.redherring.com/article.aspx?a=15850"]goofed on its own taxes[/a]. The miscalculation on its state income taxes is expected to be around $32 million. This will reduce Block's fiscal year 2005 earnings by $0.02 per share and $0.02 per share in fiscal year 2004.
Besides the problems that Block had with its own tax prep needs, the company also experienced difficulties with the technology in its offices last month that hit its bottom line early in tax season.
'Technology problems across the H&R Block network in early January impacted our ability to serve clients in those crucial early weeks,' said Block Chairman Mark A. Ernst. He said the problems had been corrected, but they impacted the company's ability to serve 250,000 clients at that time of year.