User:Pak atan/sandbox

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TaxAct Holdings, Inc.
IndustryTax preparation
Founded1998; 26 years ago (1998)
FoundersLance Dunn
Cammie Greif
Jerry McConnell
Alan Sperfslage
Headquarters
Cedar Rapids, Iowa, U.S.
Area served
United States, Canada
Key people
Sanjay Baskaran (President)
ParentBlucora
Websitewww.taxact.com

TaxAct is a tax preparation software package created by TaxAct Holdings, Inc., an American software company based in Cedar Rapids, Iowa. The company was founded in 1998 as TaxACT and is now a subsidiary of Blucora.[1] TaxAct is a member of the Free File Alliance, a free federal tax preparation and electronic filing program.[2] It is known as the official sponsor for Sprint Cup series racer Danica Patrick during the NASCAR 2015 and 2016 seasons.[3]

History[edit]

Early history[edit]

In 1994, Intuit, makers of TurboTax, acquired Parsons Technology, a technology company based in Cedar Rapids and active in the tax preparation business. Parson had its featured and most lucrative product Personal Tax Edge used for upgrade every year. However, Intuit discontinued Personal Tax Edge within a few years. As a result, four of the former Parsons employees branched out to found “2nd Story Software” in 1998, with no assets nor funding and with the idea of challenging the industry leaders. They relied on the emerging popularity of the Internet. The name of the company was inspired by their 2nd initiative in creating a tax product and their location on the 2nd floor of a building.

TaxAct was founded in 1998 as TaxACT by Lance Dunn, the former Vice President of software development at Parsons, who recruited Jerry McConnell and Alan Sperfslage as software developer, and Cammie Greif as a marketing specialist.[4]

Around 2000, a cloud-based version of TaxACT software was released to support the company’s expansion.

In 2004, TA Associates, a private equity firm based in Boston, acquired two-thirds of the company for $89 million.

In October 2010, H&R Block said it would pay $287.5 million in cash to acquire the parent firm of TaxAct. In May 2011 the U.S. Department of Justice attempted to stop the acquisition in an antitrust lawsuit.[5][6][7] In November 2011, a federal judge sided with the Justice Department of the United States to make both companies mutually terminate their contract.[8]

In 2013, the name of the company 2nd Story Software was officially changed to TaxACT to better align with the product.

Recent history[edit]

Over the last few years, the company has acquired Balance Financial (2013),[9] 2nd Story Software (2013),[10] and Simple Tax (2015).[11] In the same year, its results defied Wall Street estimates.[12] In 2017, Sanjay Baskaran was appointed as the President of the company.[13]

Timeline[edit]

  • 1998 Four co-founders, all veterans of Parsons Technology, decide to create a new DIY tax preparation software. They name the company 2nd Story Software.
  • 2000: The first entirely cloud-based version of the TaxACT software is released.
  • 2004: The company receives an $89 million investment from TA Associates in exchange for a two-thirds ownership stake.
  • 2005: TaxACT is the first tax preparation software to offer free online filing.
  • 2012 (January): 2nd Story Software is acquired for $287.5 million by InfoSpace (now known as Blucora), the holding company of TaxACT.[14][15][16]
  • 2013: The company's name is changed to TaxACT to better reflect its mission. Then, in October of the same year, TaxACT made its first acquisition with Balance Financial.[17]

Overview[edit]

TaxAct provides affordable software and assistance to salaried employees, homeowners, investors, freelancers, self-employed individuals and tax professionals.[18] [19] It is a full-featured online tax application that offers options for most tax scenario in a simple user interface with a range of products as follows:[20]

  • Free - for those who file simple returns, using 1040EZ and 1040A filers.[21][22]
  • Premium - provides form filing assistance using prior data.[23]
  • Freelancer - for individuals filing Schedule C.[24]
  • Pro - aimed towards heavy usage customers and professionals.[25]

Reception[edit]

In 2018, TaxAct was awarded the title of Best Free Online Tax Software by Business News Daily.[26] and listed in the Best Tax Softwares by PCMag[27]

TaxAct handled 5.5 million U.S. filers’ tax returns 2015 and is known as the third-largest online tax preparation firm in America.[28] Two decades after its predecessor Parsons Technology was shut down by Intuit, maker of TurboTax, TaxAct has grown into a viable alternative to Turbotax and H&R Block.[29][30]

References[edit]

  1. ^ "Blucora Acquires TaxACT | Mergr". mergr.com. Retrieved 2018-01-18.
  2. ^ Members of Free File Alliance (2011)
  3. ^ "TaxAct extends partnership with Danica Patrick". Retrieved 2018-02-02.
  4. ^ "Cedar Rapids' TaxACT went from David to Goliath | The Gazette". The Gazette. Retrieved 2018-02-13.
  5. ^ "U.S. Seeks to Halt H&R Block's Deal for Rival". The New York Times. May 23, 2011.
  6. ^ "H&R Block Sued by U.S. to Stop Purchase of TaxAct Maker". Bloomberg. May 24, 2011.
  7. ^ Justice Department Files Antitrust Lawsuit to Stop H&R Block Inc. from Buying TaxAct; Deal Would Substantially Reduce Competition in Sale of Digital Do-It-Yourself Tax Preparation Products and Result in Higher Prices and a Reduction in Innovation and Quality, Department of Justice, Office of Public Affairs, Press Release, May 23, 2011
  8. ^ United States v. H&R Block, Inc., 2SS Holdings, Inc., and TA IX L.P., Memorandum Opinion (November 10, 2011)
  9. ^ "TaxAct bolsters personal finance tools with Balance Financial buy". GeekWire. 2013-10-04. Retrieved 2018-01-18.
  10. ^ Press, The Associated (2011-05-23). "U.S. Seeks to Halt H&R Block's Purchase of TaxACT Software". The New York Times. ISSN 0362-4331. Retrieved 2018-01-18.
  11. ^ "Blucora's (BCOR) CEO William Ruckelshaus on Q2 2014 Results - Earnings Call Transcript". www.nasdaq.com. Retrieved 2018-01-18.
  12. ^ "TaxACT operator Blucora beats Wall Street estimates, but sees 'continued pressures' at InfoSpace". GeekWire. April 30, 2015.
  13. ^ https://www.seattletimes.com/business/technology/blucora-recruits-former-amazon-exec-to-lead-taxact/
  14. ^ M&A: January 9, 2012
  15. ^ "InfoSpace Buys Online Tax Solutions Company TaxACT For $287.5M In Cash". TechCrunch. January 9, 2012.
  16. ^ "Blucora earnings fall in Q2, but TaxACT continues to bring in revenue". GeekWire. Retrieved 2018-03-27.
  17. ^ "TaxAct bolsters personal finance tools with Balance Financial buy". GeekWire. October 4, 2013.
  18. ^ Guta, Michael. "TaxAct Launches Solution for the Self-Employed". www.smallbiztrends.com.
  19. ^ "Comparing Prices Of TurboTax, H&R Block, and TaxAct". The College Investor. 2017-12-11. Retrieved 2018-01-29.
  20. ^ "Best tax program 2018: TurboTax, TaxSlayer, H&R Block, TaxAct compared". Macworld. March 9, 2018.
  21. ^ "TaxAct Releases Free Online Edition". December 9, 2016.
  22. ^ "Comparing Prices Of TurboTax, H&R Block, and TaxAct". The College Investor. 2017-12-11. Retrieved 2018-01-29.
  23. ^ "TaxAct Costs Less Than TurboTax, H&R Block; Is It As Good?". Money Under 30. 2017-03-23. Retrieved 2018-01-29.
  24. ^ "Comparing Prices Of TurboTax, H&R Block, and TaxAct". The College Investor. 2017-12-11. Retrieved 2018-01-29.
  25. ^ "TaxAct vs. TurboTax: Tax Software Comparison - NerdWallet". NerdWallet. 2017-02-02. Retrieved 2018-01-29.
  26. ^ "Best Free Online Tax Software: TaxAct". Business News Daily. Retrieved 2018-02-13.
  27. ^ "The Best Tax Software of 2018". PCMag India. 2018-02-09. Retrieved 2018-02-13.
  28. ^ "TurboTax Takes Aim at Smaller Rival in Fight for Filers". Bloomberg. February 22, 2016.
  29. ^ "Online Tax Prep Battle: TurboTax Deluxe vs. TaxACT Online Plus". PC Magazine. March 11, 2016.
  30. ^ "Guide to Do-It-Yourself Tax Sites". Bloomberg. March 11, 2016.

External links[edit]


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