RSM McGladrey Inc. was created when McGladrey & Pullen sold its non-attest assets and business to H&R Block Inc. in August 1999. Under terms of the agreement, RSM McGladrey was established as an indirect, wholly-owned subsidiary of H&R Block. For regulatory reasons, McGladrey & Pullen LLP was maintained as a separate entity in the business of public accounting, including providing audit and attest services, and certain income tax services. It is owned by McGladrey & Pullen partners and is operated independently of RSM McGladrey and H&R Block. The division of services between the two companies is necessary because the practice of public accounting is regulated by state boards of accountancy and services must be performed by a certified public accountant

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