Revenue from assisted returns increased to $1.87 billion, up 4.5 percent from $1.79 billion for fiscal 2012.
The company reported a 0.1 percent decrease in the number of returns prepared for the year, which fell to 24.2 million. However, that was much better than the assisted category, which had a 4.4-percent drop nationwide.
"We saw positive changes in our assisted return mix, our D-I-Y business did very well, both from a volume and a revenue perspective, and our tax professionals delivered expert ACA [Affordable Care Act] advice to their clients," CEO Bill Cobb said in a prepared statement.
Net income fell to $488 million in the recently ended year, down 1.4 percent from $495 million for 2014. Total revenue was $3.07 billion, up from $3.02 billion the prior year.
The company believes that industry-wide D-I-Y revenue is being spurred by fraud as those trying to file false refund claims move away from assisted returns. D-I-Y returns are not subject to the scrutiny the government gives assisted returns. Block also attributes part of the decline in assisted returns it prepared to its decision to discontinue last year's free federal 1040EZ program.
The number of D-I-Y returns prepared via Block's software rose by 8 percent. The company said that was because of product enhancements and improved consumer awareness.
About 16 percent of Block's clients were directly impacted by healthcare issues. The majority of those were without qualifying insurance coverage and were either paying the required penalty or obtaining an exemption.
Other revenue sources were not strong. Royalty revenue fell 7.4 percent to $292.7 million from $316.2 million a year earlier. Refund transfer revenue for 2015 was $171.1 million, down 5.6 percent compared to $181.4 million the prior year. Income from the company's Emerald Card was essentially unchanged at $103.3 million. Revenue from the company's Peace of Mind guarantee program dropped to $81.6 million, off 9 percent from 2014's $89.7 million
