tax

tax season 2011 disappoints some

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despite economic recovery, many firms seem unable to capitalize on new opportunities. click here to join the tax season 2011 survey; get the results.

march survey results show 18% of accountants reporting "much" better overall results than a year ago and 26% reporting "somewhat" better results. source: 卡塔尔世界杯常规比赛时间 research

tax accountants are finishing the 2011 busy season with stronger results than they expected, but – perhaps surprisingly — not as strong as last year, despite somewhat improved economic conditions.

卡塔尔世界杯常规比赛时间 research suggests that many accounting firms may have over-reacted to the 2007 market crash by cutting staff and billing rates, leaving them unprepared to capitalize on the opportunities of the 2011 recovery.

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are refund anticipation loans dead?

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“last nail in the coffin.”

via consumeraffairs.com

the federal deposit insurance corporation has notified republic bank & trust of kentucky that the bank’s high cost refund anticipation loans are “unsafe and unsound,” effectively cutting off jackson hewitt and liberty tax, the second and third largest tax preparation chains in the country.

the fdic’s action follows a similar action by the office of comptroller of currency, which issued a regulatory directive on christmas eve against hsbc (h&r block’s ral partner bank) prohibiting that bank from making rals.

“this may be the last nail in the coffin for rals,” said adam rust, research director for community reinvestment association of north carolina. “if so, we will be glad to see the death of these high cost, high risk loans.”

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new irs requirements could force big shake-out in tax prep industry

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wall street: mom-and-pop tax shops in peril.

john hewitt, the founder of jackson hewitt and now ceo of liberty tax, expects a huge shakeout because of the new irs requirement for paid tax-return preparers to register with the government.

john hewitt
john hewitt

market share for the two largest tax chains, h&r block and jackson hewitt, has eroded by about 9% in the past four years as do-it-yourself online tax software gained ground. turbotax, for example, grew by about 121%. but the new irs ptin rules may slow the decline by forcing out mom-and-pop paid preparers, according to wall street analysts. read more →