Announcement

Collapse
No announcement yet.

HRB Acquisition of TaxAct

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    HRB Acquisition of TaxAct

    Late last year, 2nd Story Software, the makers of TaxAct, announced that they had entered into an agreement to sell the company to H&R Block.

    But that may not happen. The US Department of Justice has filed an antitrust lawsuit to stop the acquisition.

    The Department of Justice filed a civil antitrust lawsuit today to block the proposed acquisition by H&R Block Inc. of TaxACT, a digital do-it-yourself tax preparation software provider.


    TaxAct, I believe, has long been number 3 in the DIY market, with TurboTax holding the number 1 spot, and the HRB product holding the number 2 spot. The implications are obvious. While TaxAct's market share has been relatively small, I'm sure HRB would love to have it. And DOJ apparently doesn't like the idea of reducing the playing field down to just two major competitors.

    What some on this board may not know is that TaxAct offers very good professional tax software, at a very attractive price. My office has been using it for years. It doesn't have lots of bells and whistles, and it certainly has some limitations. Most striking: No Form 1040NR and no Form 1041. Their software does partnerships, C corps, and S corps, but not trusts. Or any other business entity, for that matter. So if you have something really esoteric, like a homeowner's association, you're out of luck. But it's great software for a small practice with only a few tax pros, where most of the work is 1040 returns. And it's sold in modules, so if you really want to use a different program for business returns, you can. The basic 1040 program, for the last few years, has been only $120, and the all-states package has been $80. The state software supports city tax returns in some places, but not in others, such as the mess we have in Ohio.

    The program allows unlimited paper returns. E-file pricing is per return, or unlimited for the entire year. All pretty reasonable for a small practice.

    What is most interesting, and what may keep the price so low, is that believe it or not, the professional version of TaxAct is identical to the consumer version of the program, with one exception: In the professional version, you can enter your PTIN and EFIN. (And the professional version supports a RAC-type bank product.)

    So we as tax pros go through exactly the same interview, or Q & A, that a DIY user would, unless the tax pro chooses to enter data directly into the forms. And of course, there are a few important differences at the end, for the ERO and tax pro. But otherwise there is literally no difference between the professional product and the high-end "deluxe" DIY product.

    And we have been very satisfied with it.

    Based on the DOJ press release, it appears that they are primarily concerned about the impact that the HRB acquisition would have on competition in the DIY market.

    I have to wonder what will happen to the professional product if the acquisition is allowed to proceed. HRB has never developed a professional program for sale to independent tax professionals. They certainly develop their own software for use in their retail offices. But that product isn't released outside of HRB. And for business returns, historically, HRB was using ATX in their "premium" offices. More recently, HRB acquired TaxWorks, so I think they began using that program for business returns.

    In other words, until the acquisition of TaxWorks, HRB never offered tax software to tax professionals. Now they do. Not by developing a new product, but rather by gobbling up small fish in that pond. I suppose they see this as a way to expand their overall market penetration...

    BMK
    Last edited by Koss; 05-24-2011, 08:30 PM.
    Burton M. Koss
    koss@usakoss.net

    ____________________________________
    The map is not the territory...
    and the instruction book is not the process.

    #2
    Taxact Pro

    I used it for a number of years.
    The unlimited E-File (Federal & State) is $500. Once you prepare more than 100 returns it's best to pay the upfront $500 - cheaper in the long run.

    When I bought it - I paid $99 per year and $79 for the All States.

    I believe the year after I left them (For TRX @ $299) they came out with a client interface. One of the things I miss about them is the FAFSA report they generated. My clients loved it - Dummy me never charged for it though. No wonder I'm broke again!
    Matthew Jones
    Tax Preparation
    Computer Consultant


    Tax Season is here!
    Make sure everything is working, extra ink or toner is available, Advil in top drawer!

    Comment


      #3
      Excuse my ignorance..

      but what is FASFA? As I've already posted, I'm a satisfied TaxAct user, though I do miss the 1041's. I've noticed they've been conspicuously quiet about the Block merger.
      Evan Appelman, EA

      Comment


        #4
        Fafsa

        Originally posted by appelman View Post
        but what is FASFA? As I've already posted, I'm a satisfied TaxAct user, though I do miss the 1041's. I've noticed they've been conspicuously quiet about the Block merger.
        "Reports," then "College Student Financial Aid" which gleans FAFSA information from the existing tax return. You can select either "parent" or "student" version of the report.

        It is a valuable tool for helping find the numbers from a tax return to use on the paperwork required for applying for most (all?) student loans.

        FE

        Comment


          #5
          My view of TaxAct

          I've been using their product for several years. Most of the underlying staff/developers came from the now-defunct Parsons Technology tax software group.

          While the program does have its limitations, overall it is quite useful and almost a bargain. It may not have each and every off-the-wall form, but there are ways around that for the rare events for most of us whenever we need the "strange" stuff. The number of forms provided (federall and state) has increased significantly the last couple of years.

          The number of forms, and more importantly associated worksheets, increases each year. I have found their support staff to be helpful and responsive. I use email contact almost exclusively, and they usually respond within 24 hours.

          The Preparer's Edition is quite reasonably priced, and most people will come out ahead with the multi-state package versus paying for each state. I think the swap-off is somewhere around four states? As for efiling you can pay per submission or buy various packages. Returning customers who renew in late spring get preferred pricing for the upcoming year.

          I have been a bit concerned about HRB "gobbling up" TaxAct, so this recent news to me is somewhat a positive event!

          FE

          Comment


            #6
            DIY Version

            Does the DIY version have a FASFA?

            Comment


              #7
              Originally posted by erchess View Post
              Does the DIY version have a FASFA?
              Yes. I never saw it before, but I just looked and there it was! (While I no longer use the professional version of TaxAct, I always order the DIY version as a backup for my own return.)
              Last edited by DonPriebe; 05-25-2011, 06:31 AM.

              Comment


                #8
                Olt

                I just got a postcard from OLT Pro. Unlimited returns for $ 399 including free e-filing.
                Covers 1040, 1041, 1120, 1120S, 2290, 5500,706, 720 & 990.
                It may NOT include 941s, 1099s & W-2s.

                Comment


                  #9
                  The last time I looked at OLT for 1041's...

                  it was definitely a work in progress. Perhaps calling it a beta version would be more accurate. I ended up giving THEM a lot of help. Hopefully, things have gotten better.
                  Evan Appelman, EA

                  Comment


                    #10
                    Their website is a hodgepodge of current and ancient information.

                    I ordered a CD anyway.

                    I am not very optimistic of what I'll see.
                    Doug

                    Comment


                      #11
                      NAEA E@lert

                      From Friday's NAEA E@lert:

                      H&R Block was blocked from acquiring 2nd Story Software, the company that makes TaxACT, by a Department of Justice anti-trust lawsuit. The Department of Justice stated in prepared remarks that they are blocking the transaction "because the proposed merger would substantially lessen competition in the tax preparation software market, resulting in higher prices, lower quality and reduced innovation." DoJ also noted that 90% of all those do-it-yourself tax returns are prepared using the top three software providers: H&R Block, TaxACT and Intuit (which issues TurboTax).

                      Comment

                      Working...
                      X