The tax services company said the SEC's questions involve the timing of franchise fee revenue recognition for both territory and area developer sales.JTH has received a comment letter on those topics and has been in what it said was in "a comment and reply process with related telephonic communications regarding these matters."
SEC Questions Delay Liberty Results
Questions about franchise fee revenue recognition has caused JTH Holding, the parent of Liberty Tax Service, to delay the release of financial results for the year ended April 30. The company reported it has been in discussion with the staff and the SEC's Division of Corporation Finance about results for fiscal 2012 and the quarter ended January 31 this year.
