Tax preparation company Jackson Hewitt this week moved closer to its goal of getting funding for refund anticipations loans for all locations for the next tax season. The company said that Republic Bank, which funded 50 percent of its of RALs last season and had been prepared to do the same in 2011, has agreed to provide funding for refund loans at 80 percent of its locations.
That announcement followed a state the day before that the chain has funding for 100 percent of its assisted transfers through the Santa Barbara Tax Products Group. Jackson Hewitt still faces the requirement from its lenders that it get funding for all RALs for the next tax season. The coverage is not defined by the volume of money to be loaned, but by the states in which Republic is willing to provide funding. However, this year, Jackson Hewitt has the right to designate offices, subject to approval by the bank, "thereby allowing Jackson Hewitt to more optimally select offices to offer financial products," according to a prepared company statement.
Meanwhile, the company reported its loss for the second quarter ended October 31 was virtually unchanged. Like many companies that derive most of their business from tax preparation software and services, Jackson Hewitt loses money after tax season. In this case, the loss of $19.4 million was virtually unchanged from a year ago. Revenue fell to $3.5 million, down 16 percent from just over $4 million in last year's corresponding period. A major factor was a drop in service revenue for company-owned stores.
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards. Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that. A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
