McGladrey & Pullen to Divorce H&R Block

Submitted by Melissa Lajara on Wed, 07/22/2009 - 13:49

The lengthy relationship between embattled H&R Block and McGladrey & Pullen, the fifth largest accounting firm in the New York area, has soured. The latter has issued formal notice of intent to terminate its contract with H&R Block. While McGladrey & Pullen’s audit practice is an independent, partner-owned firm, related professional services have been offered through RSM McGladrey under an agreement with H&R Block.

“This arrangement made sense in 1999,” Dave Scudder, managing partner of McGladrey & Pullen LLP, said in a statement. “However, that operational and financial model does not serve us well as we address our future goals of client service, opportunity for our partners, and continued growth.”

McGladrey & Pullen anticipates it will take at least seven months to fully unwind its relationships with RSM McGladrey and H&R Block, according to the statement.The firm said it expects the process to be "seamless to the firm’s clients."

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