This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Chill H&R Block Bulls: Taxes Unlikely to Get Simple

Stocks in this article: HRB

NEW YORK ( TheStreet) -- President Obama's advisers may be borrowing a plan from defeated Republican challenger Mitt Romney to simplify the tax code, but chances are it will remain tricky enough to allow H&R Block (HRB) to keep revenues climbing, according to an analyst report published Tuesday.

BTIG analyst Mark Palmer writes that "some clients have expressed concern" about "the possibility that the U.S. government will embark on a new program of tax simplification that would obviate much of the need for tax preparation assistance."

However, Palmer doubts any such effort will succeed.

"The benefits of tax simplification have been touted by Democrats and Republicans alike for the past 50 years," he writes.

Opponents of a simplified tax code include "tax lawyers, accountants, investment advisors specializing in tax shelters, IRS agents, publishers and others in peripheral businesses," whose livelihood depends on its complexity, Palmer contends. He believes "these groups have their own small armies of lobbyists and significant sway over the legislative process."

Another consideration for H&R Block investors is what would happen if the U.S. goes over the "fiscal cliff," following a failure by Congress to agree on a plan to reduce the U.S. deficit.

Falling off the cliff would create confusion, leading to an opportunity for H&R Block to win new clients, according to Palmer.

"Confusion over taxes, such as that potentially created by the fiscal cliff, is the mother's milk of the assisted tax preparation industry, and the complexity of this year's situation could give H&R Block an edge,' he writes.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs