According to an official statement, TaxAct was used to prepare and file more than 5 million returns during the 2010 tax season. Block struggled with its digital business during the last season, recording unit growth of .4 percent over the 2009 tax season while rival Intuit saw 10 percent growth in TurboTax unit sales. Based in Cedar Rapids, Iowa, Second Story was founded in 1998. TaxAct was created after Intuit purchased Parsons Technology in 1994 and discontinued its Personal Tax Edge. The founders of TaxAct had all worked at Parsons before launching the new product. The company offers both online and CD-based tax preparation products. It also offers professional versions of federal and state 1040, 1120/1120S and 1065 forms. It offers all 1040 states, but still lacks many of the business states, although several were added this year.
Block Buys TaxAct Software
NEW YORK - In what looks like a lack of confidence in the management of its own consumer tax product, H&R Block said it would buy Second Story Holdings, which owns the TaxAct software, for $287.5 million in cash. Block will continue to market its At Home line, formerly known as Tax Cut, along with TaxAct, but the acquired unit's management will run the business.
