Tax Cuts Leave Families--and H&R; Block--With More

On Tuesday, President Clinton signed legislation aimed at balancing the U.S. budget and giving Americans $95 billion in tax cuts.

J.D. Rinde, West Orange County district manager for H&R; Block Inc., finds that “kind of exciting.” For the last several years, he said, most changes in the tax code have affected primarily businesses and investors. “This year there are pretty good changes that will affect a lot of lower- and middle-income people,” he said.

Rinde said the giant tax preparer will begin training staff this fall on the tax changes, and by the holidays “they’ll be ready to go.”

He is expecting that most questions from clients will deal with modifications in taxes on capital gains and the sale of a personal residence, as well as reduced penalties for early withdrawal of Individual Retirement Account funds.

“Tax changes are good for our business,” he said. “They generate questions and queries,” which can lead to new customers. And, as tax season draws nearer, the company could be fielding a huge volume of calls, he said, “because it’s easier to get through to us than the IRS.”

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Patrice Apodaca covers economic issues for The Times. She can be reached at (714) 966-5979 and at patrice.apodaca@latimes.com