Attorney General Andrew Cuomo has reached a settlement with H-and-R Block over the tax preparation company's sweepstakes program.

Cuomo's office says H-and-R Block failed to post the rules and regulations of its promotions at its offices and used deceptive advertising material to promote two sweepstakes games.

The Kansas City, Missouri-based company operates 400 retail offices in New York State, and conducted two sweepstakes games during the 2006 and 2007 tax seasons.

In both games, scratch-off cards were given to customers who purchased H-and-R Block tax services. New York state law requires that sweepstakes be open to non-customers too.

H-and-R Block must now pay the state $245,000 in penalties and costs. They must also disclose that the purchase of their products isn't necessary to enter any promotional contest.