IRS Taps Former Block CEO as Deputy Commissioner

Former H&R Block Chairman and CEO Mark Ernst has taken a job with the Internal Revenue Service as deputy commissioner for operations support.

As part of the job, he will manage functions such as technology, human resources, finance, facilities and data security. Ernst, 50, will report to IRS Commissioner Douglas Shulman and work with deputy commissioner for services and enforcement Linda Stiff.

Ernst was chief operating officer of Block between 1998 and 2000. He was named CEO of Block in January 2001 and became chairman the following year. In November 2007, he was ousted by hedge fund manager and former SEC Chairman Richard Breeden, now chairman of the company, who criticized Block for moving away from its core tax preparation business into areas such as subprime mortgages.

Block ultimately had to sell its Option One mortgage unit after reporting more than $1 billion in losses. Block also needed to revise its earnings in 2006 for 2004 and 2005 because it underpaid state taxes by up to $32 million.

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