Jackson Hewitt Tax Service, which suddenly has a leg up on rival H&R Block, said it will operate in more than 2,000 stores during the 2011 tax season.That's up 10 percent from this year, the first year of its exclusive contract, when the tax preparation chain had 1,800 Walmart tax preparation sites. That announcement followed Block's disclosure this week that it won't get funding for Refund Anticipation Loans from HSBC which was barred from the business by the Office of the Comptroller of the Currency.
Before Jackson Hewitt got the Walmart business, Block had the superstore franchise. Meanwhile, Jackson Hewitt now has an advantage in its ability to provide RALs. It was at a disadvantage during the past tax season when the company was able to secure funding for RALs for only 50 percent of its sites. This coming tax season, Jackson Hewitt will offer RALs at roughly 90 percent of its sites with increased funding from Republic Bank. Barring a miracle, or financing the program itself, Block will be shut out. The inability to offer RALs drove down Jackson Hewitt sales during the 2010 season.
Jackson Hewitt said it would open kiosks next week in Walmart stores in advance of tax season.