Evaluating tax software: an assessment of the products CPAs use.Tax-preparation-software products generally received higher marks from practitioners this year than last year. That's the conclusion of a survey conducted by the National Association of Tax Professionals (NATP NATP National Association of Tax Professionals NATP National Agricultural Technology Project (India) NATP National Association of Tax Practitioners NATP National Apprenticeship Training Program NATP National Athletic Testing Program ) and shared with the JofA. A total of 977 NATP members responded to the survey, reporting their experience with the products they had used to prepare 476,000 tax returns earlier this year. Respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. prepared an average of 497 returns each. Although NATP members assessed 26 different software packages for the survey, only 14 were included in the final report (see exhibit 1, page 39). Products that received less than 10 assessments were excluded because their results would not be statistically valid. Users ranked tax software products from 5 (very satisfied) to 1 (very dissatisfied dis·sat·is·fied adj. Feeling or exhibiting a lack of contentment or satisfaction. dis·sat  is·fied ). Based on these rankings, users responded with
satisfaction ratings averaging 3.99, up from 3.84 a year ago (see
exhibit 2, page 40). The product to receive the highest score was Dunphy
Customer support also gained. The average score in this category for the 14 products was 3.91, compared with 3.75 the year before. The product with the highest support rating was Taxslayer with a score of 4.39; it was not rated last year. Network support mightily might·i·ly adv. 1. In a mighty manner; powerfully. 2. To a great degree; greatly. Adv. 1. mightily - powerfully or vigorously; "he strove mightily to achieve a better position in life" 2. improved this year. The average rating rose to 3.95 from 3.07 last year, with Dunphy once again leading the pack. More preparers offered clients the use of electronic filing this year: 89%, up from 79% last year (see exhibit 3, page 42). The survey respondents reported that 60% of their federal returns were filed this way. Some 49% charged their clients for e-filing Filing income tax and other governmental forms online. , up a bit from 48% last year. [EXHIBIT 3 OMITTED]
Exhibit 1: Tax Software Vendors
Vendor Tax program Address
2nd Story TaxACT 5925 Dry Creek Lane, NE,
Software Cedar Rapids, IA 52402
ATX Forms Max, Saber 52 Sweden St., P.O. Box 1040,
Caribou, ME 04736
CCH ProSystem fx 21250 Hawthorne Blvd.,
Torrance, CA 90503
Creative UItraTax 7322 Newman Blvd.,
Solutions Dexter, MI 48130
Drake Software Drake Tax Solution 235 E. Palmer St.,
Franklin, NC 28734
Dunphy Systems 1040 Professional 6740 Huntley Rd., Suite 103,
Tax Prep Columbus, OH 43229
Intuit Pro Series 6220 Greenwich Dr.,
San Diego, CA 92122
Lacerte Software Lacerte 1040 5601 Headquarters Dr.,
Tax Software Plano, TX 75024
Laser Systems TaxWorks 350 N. 400 West,
Kaysville, UT 84037
Micro Vision Tax Relief 1040 140 Fell Ct.,
Software for Windows Hauppauge, NY 11788
Orrtax Software IntelliTax 13208 NE 20th St.,
Bellevue, WA 98005
Rhodes Financial TaxSlayer 610 Ronald Reagan Dr.,
Services Evans, GA 30809
Tax$imple Tax$imple 8 Emery Ave.,
Randolph, NJ 07869
Universal TaxWise 6 Mathis Dr., NW,
Tax Systems Rome, GA 30165
Vendor Telephone Internet address
2nd Story 800-573-4287 www.taxact.com
Software
ATX Forms 800-944-8883 www.atxpros.com
CCH 800-739-9998 www.prosystemfx.com
Creative 800-968-8900 www.creativesolutions.com
Solutions
Drake Software 800-890-9500 www.drakesoftware.com
Dunphy Systems 614-431-0846 www.dunphy.com
Intuit 800-934-1040 www.proseries.com
Lacerte Software 800-765-7777 www.lscsoft.com
Laser Systems 800-230-2322 www.taxworks.com
Micro Vision 631-232-1040 www.mvsinc.com
Software
Orrtax Software 425-649-8291 www.intellitax.com
Rhodes Financial 706-868-0985 www.taxslayer.com
Services
Tax$imple 800-989-8955 www.taxsimple.com
Universal 800-755-9473 www.taxwise.com
Tax Systems
Exhibit 2: How Users Rank Their Tax Software
Highest rating
Number Average number
Tax of of returns per
Vendor Program respondents respondents
2nd Story TaxACT 25 112
Software
ATX Forms Max, Saber 91 218
CCH ProSystem fx 27 524
Creative UltraTax 62 605
Solutions
Drake Software Drake Tax Solution 159 689
Dunphy Systems 1040 Professional 20 758
Tax Prep
Intuit Pro Series 214 404
Lacerte Software Lacerte 1040 155 559
Tax Software
Laser Systems TaxWorks 21 552
Micro Vision Tax Relief 1040 39 503
Software for Windows
Orrtax Software IntelliTax 17 463
Rhodes Financial TaxSlayer 18 487
Services
Tax$imple Tax$imple 17 327
Universal Tax TaxWise 86 535
Systems
Average Rating
Satisfaction
1 = very dissatisfied and 5 = very satisfied
Product Support Number of
Product rating Support rating network
Vendor rating last year rating last year users
2nd Story 3.63 3.50 3.36 3.71 3
Software
ATX Forms 4.05 3.59 4.02 3.59 17
CCH 3.96 4.21 4.15 4.14 15
Creative 4.19 4.57 4.11 4.33 30
Solutions
Drake Software 3.98 4.15 3.94 3.90 59
Dunphy Systems 4.50 3.43 4.35 3.71 4
Intuit 4.07 3.98 4.00 3.79 51
Lacerte Software 4.32 4.28 4.13 4.29 66
Laser Systems 4.24 3.95 3.86 4.10 10
Micro Vision 3.97 3.47 3.72 2.73 13
Software
Orrtax Software 3.47 2.95 3.59 3.42 3
Rhodes Financial 4.44 N/A 4.39 N/A 6
Services
Tax$imple 3.41 N/A 3.82 N/A 5
Universal Tax 3.64 3.59 3.25 3.26 27
Systems
Average Rating 3.99 3.81 3.91 3.75
Network Respondents who Conversion
Network rating used conversion package
Vendor rating last year package rating
2nd Story 2.33 N/A 5 2.00
Software
ATX Forms 3.65 3.33 24 3.25
CCH 4.13 4.57 4 3.00
Creative 4.23 4.38 23 3.57
Solutions
Drake Software 4.05 4.50 52 3.35
Dunphy Systems 4.75 3.00 0 N/A
Intuit 3.59 3.68 39 3.36
Lacerte Software 4.17 4.18 33 3.48
Laser Systems 4.10 4.33 3 4.67
Micro Vision 4.08 3.75 6 3.17
Software
Orrtax Software 4.50 3.67 4 3.50
Rhodes Financial 4.17 N/A 7 3.86
Services
Tax$imple 4.00 N/A 4 2.75
Universal Tax 3.56 3.63 17 3.47
Systems
Average Rating 3.95 3.07 3.34
Plan to use product next year
Percentage of respondents who said
Vendor Yes No Undecided
2nd Story 72 16 12
Software
ATX Forms 86 4 10
CCH 85 8 8
Creative 90 3 6
Solutions
Drake Software 89 7 4
Dunphy Systems 80 10 10
Intuit 78 6 17
Lacerte Software 87 8 5
Laser Systems 95 0 5
Micro Vision 72 15 13
Software
Orrtax Software 82 12 6
Rhodes Financial 83 17 0
Services
Tax$imple 65 29 6
Universal Tax 75 14 11
Systems
Average Rating 87.62 11.46 8.69
Exhibit 3: How Users Rate Electronic Filing
Percentage offering
electronic filing
Vendor Tax program This year Last year
2nd Story TaxACT 96 67
Software
AIX Forms Max, Saber 79 67
CCH ProSystem fx 81 73
Creative UltraTax 89 85
Solutions
Drake Software Drake Tax Solution 96 94
Dunphy Systems 1040 Professional 85 75
Tax Prep
Intuit Pro Series 86 77
Lacerte Software Lacerte 1040 85 76
Tax Software
Laser Systems TaxWorks 95 90
Micro Vision Tax Relief 1040 82 69
Software for Windows
Orrtax Software IntelliTax 100 100
Rhodes Financial TaxSlayer 100 94
Services
Tax$imple Tax$imple 82 47
Universal Tax TaxWise 95 90
Systems
Averages 89 79
Percentage
offering
bank
products
Percentage charging to clients
Percentage of for e-filing as part of
federal returns e-filing
Vendor e-filed This year Last year service
2nd Story 60 79 60 4
Software
AIX Forms 59 41 37 5
CCH 76 36 26 0
Creative 55 48 46 7
Solutions
Drake Software 80 21 18 38
Dunphy Systems 54 47 57 11
Intuit 59 51 52 14
Lacerte Software 54 53 48 2
Laser Systems 59 65 63 29
Micro Vision 42 72 63 10
Software
Orrtax Software 64 41 41 41
Rhodes Financial 66 41 53 44
Services
Tax$imple 33 57 75 12
Universal Tax 74 37 30 29
Systems
Averages 60 49 48 18
Additional cost Additional cost
for per
Vendor e-filed software e-filed return
2nd Story Included Up to $7.95 per return
Software depending on volume; $350
for unlimited federal filings
AIX Forms None $5 for federal and state
filings; $100 for unlimited
CCH Varies $50 state license fee
($1 per return); $100
all state license fees
($1 per return)
Creative None $2 federal returns; $1
Solutions state; unlimited available
Drake Software None No charge
Dunphy Systems $99 $5 per return
Intuit None Unlimited federal returns
$750, $3 per return;
unlimited state returns
$400, $2 per return
Lacerte Software None $2 per federal and
$2 per state;
$1,000 maximum
Laser Systems Included $1 to $5 based on volume
Micro Vision $195; $495 for $1.50 per return
Software unlimited use
Orrtax Software Included Up to $8 per return
Rhodes Financial None $1 to $6 based on volume
Services
Tax$imple Yes Yes
Universal Tax None Yes
Systems
Averages
Direct filing
or State return
Vendor service bureau? e-filed?
2nd Story Service bureau Yes
Software
AIX Forms Service bureau Yes
CCH Direct Yes
Creative Both Yes
Solutions
Drake Software Both Yes
Dunphy Systems Both Yes
Intuit Filing through Intuit Yes
Lacerte Software Service bureau Yes
Laser Systems Service bureau Yes
Micro Vision Direct Yes
Software
Orrtax Software Service bureau on-site Yes
Rhodes Financial Both Yes
Services
Tax$imple Both Yes
Universal Tax Both Yes
Systems
Averages
Exhibit 4: Software Product Details
2nd Story
Software ATX Forms
TaxACT Max, Saber
Prices
1040 package $99 $200
Renewal price $79 $180
State package $12.95 per $100
state or $51.80
for all states
State renewal N/A $90
Additional fee for
laser package? N/A No
Market
Date 2001 program shipped Jan. 9, 2002 Dec. 31, 2001
Number of updates 3 6
Updates available online Yes N/A
Number of users N/A 40,000+
Percentage of renewals
from 2000 package N/A 90%
Support
Toll-free support number No Yes
Support hours (EST) 9-10; Sat, 9-6; 8-12;
during tax season Sun, 1-6 Sat. 9-5
Number of support staff
during tax season 10 125
Packages available
Conversion package available No Yes
Cost of conversion package N/A Free
Versions available Win 95/98/ME/ Win 95/98/ME/
NT/2000/XP 2000/XP/NT
State packages available? All All
Multistate packages available? Yes Yes
IRS data displayed on screen? Yes Yes
Vendor data displayed on screen? Yes Yes
Batch processing? No Yes
Heads-down data entry? No No
Customizable-program-
management-tools (CPMT)
reports? Yes Yes
CPMT organizers? Yes Yes
CPMT labels? Yes Yes
CPMT client letters? Yes Yes
CPMT scheduling programs? No No
990? No Yes
990 included with 1040? No No
990 conversion? No No
709? No Yes
709 included with 1040? No No
709 conversion? No No
706? No Yes
706 included with 1040? No No
706 conversion? No No
1120S? Yes Yes
1120S included with 1040? No No
1120S conversion package? No Yes
1120? No Yes
1120 included with 1040? No No
1120 conversion? No Yes
1065? Yes Yes
1065 included with 1040? No No
1065 conversion package? No Yes
1041? No Yes
1041 included with 1040? No No
1041 conversion? No Yes
Creative
CCH Solutions
ProSystem fx UltraTax
Prices
1040 package $2,675 $1,800
Renewal price 25% early $1,500
renewal discount
State package $250-$675 $150-$250
State renewal 25% early $150-$250
renewal
discount
Additional fee for
laser package? No No
Market
Date 2001 program shipped Dec. 2001 Nov. 27, 2001
Number of updates 15 9
Updates available online Yes Yes
Number of users 20,000 12,000
Percentage of renewals
from 2000 package 95% 95%
Support
Toll-free support number Yes Yes
Support hours (EST) 8:30-9:30; Sat. 9-8; 9-9;
during tax season Sun. (April) 10-6 Sat. 9-6
Number of support staff
during tax season N/A 100+
Packages available
Conversion package available Yes Yes
Cost of conversion package $8 per return Free
Versions available Win 98/NT/ Win 95/98/ME/
2000/ME/XP NT 4+/2000/XP
State packages available? All All
Multistate packages available? Yes Yes
IRS data displayed on screen? Yes Yes
Vendor data displayed on screen? Yes Yes
Batch processing? Yes Yes
Heads-down data entry? Yes Yes
Customizable-program-
management-tools (CPMT)
reports? No Yes
CPMT organizers? Yes Yes
CPMT labels? Yes Yes
CPMT client letters? Yes Yes
CPMT scheduling programs? No Yes
990? Yes Yes
990 included with 1040? No No
990 conversion? Yes No
709? Yes Yes
709 included with 1040? No No
709 conversion? No No
706? Yes Yes
706 included with 1040? No No
706 conversion? No No
1120S? Yes Yes
1120S included with 1040? No No
1120S conversion package? Yes Yes
1120? Yes Yes
1120 included with 1040? No No
1120 conversion? Yes Yes
1065? Yes Yes
1065 included with 1040? No No
1065 conversion package? Yes Yes
1041? Yes Yes
1041 included with 1040? No No
1041 conversion? Yes Yes
Drake Dunphy
Software System
1040
Drake Professional
Tax Solution Tax Prep
Prices
1040 package $1,495-$1,995 $599
Renewal price $995-$1,495 $449
State package All states $209
free
State renewal All states $209
free
Additional fee for
laser package? No Yes
Market
Date 2001 program shipped Nov. 28, 2001 Dec. 28, 2001
Number of updates 3 2
Updates available online Yes Yes
Number of users 12,700+ 1,400
Percentage of renewals
from 2000 package 92% 94%
Support
Toll-free support number No No
Support hours (EST) 8-10; 8-6
during tax season Sat. 8-6
Number of support staff
during tax season 200+ 5
Packages available
Conversion package available Yes No
Cost of conversion package Free N/A
Versions available DOS & Win DOS
State packages available? All Some
Multistate packages available? Yes Yes
IRS data displayed on screen? Yes No
Vendor data displayed on screen? Yes Yes
Batch processing? Yes Yes
Heads-down data entry? Yes No
Customizable-program-
management-tools (CPMT)
reports? Yes Yes
CPMT organizers? Yes Yes
CPMT labels? Yes Yes
CPMT client letters? Yes Yes
CPMT scheduling programs? Yes No
990? Yes N/A
990 included with 1040? Yes N/A
990 conversion? No N/A
709? Yes Yes
709 included with 1040? Yes No
709 conversion? No No
706? Yes N/A
706 included with 1040? Yes N/A
706 conversion? No N/A
1120S? Yes Yes
1120S included with 1040? Yes No
1120S conversion package? No No
1120? Yes Yes
1120 included with 1040? Yes No
1120 conversion? No No
1065? Yes Yes
1065 included with 1040? Yes No
1065 conversion package? No No
1041? Yes N/A
1041 included with 1040? Yes N/A
1041 conversion? No N/A
Lacerte
Intuit Software
Lacerte 1040
Pro series Tax Software
Prices
1040 package $15 per return $2,055
$949 unlimited;
Renewal price $949 unlimited; $1,747
$15 per return
State package $249-$349 $225-$325
unlimited;
$11
per return
State renewal $249-$349 $191-$276
unlimited;
$11 per return
Additional fee for
laser package? Included No
Market
Date 2001 program shipped Dec. 26, 2001 Jan. 6, 2001
Number of updates 3 5
Updates available online Yes Yes
Number of users 57,000+ 38,000
Percentage of renewals
from 2000 package N/A 96%
Support
Toll-free support number Yes Yes
Support hours (EST) Extended 10-9; Sat. 11-5;
during tax season Sun. 1-5
Number of support staff
during tax season N/A 140
Packages available
Conversion package available Yes Yes
Cost of conversion package Free Free
Versions available Win 98/NT/ Win 95/98/NT/
2000/M E/XP 2000/ME/XP
State packages available? All All
Multistate packages available? Yes Yes
IRS data displayed on screen? Yes No
Vendor data displayed on screen? Yes Yes
Batch processing? Yes Yes
Heads-down data entry? Yes Yes
Customizable-program-
management-tools (CPMT)
reports? Yes Yes
CPMT organizers? Yes Yes
CPMT labels? Yes Yes
CPMT client letters? Yes Yes
CPMT scheduling programs? Yes Yes
990? Yes Yes
990 included with 1040? No No
990 conversion? No Yes
709? Yes Yes
709 included with 1040? No No
709 conversion? No No
706? Yes Yes
706 included with 1040? No No
706 conversion? No No
1120S? Yes Yes
1120S included with 1040? No No
1120S conversion package? Yes Yes
1120? Yes Yes
1120 included with 1040? No No
1120 conversion? Yes Yes
1065? Yes Yes
1065 included with 1040? No No
1065 conversion package? Yes Yes
1041? Yes Yes
1041 included with 1040? No No
1041 conversion? Yes Yes
Laser Micro Vision
Systems Software
Tax Relief 1040
Taxworks for Windows
Prices
1040 package $1,095 $745-$995
Renewal price $995 N/A
State package $345 $295-$345
State renewal $200 N/A
Additional fee for
laser package? No No
Market
Date 2001 program shipped Dec. 11, 2001 Dec. 12, 2001
Number of updates 7 4
Updates available online Yes Yes
Number of users 4,000 6,000
Percentage of renewals
from 2000 package 90% 94%
Support
Toll-free support number Yes No
Support hours (EST) 9-10; 9-9;
during tax season Sat. 9-3 Sun. 11-5
Number of support staff
during tax season 50 75
Packages available
Conversion package available Yes Yes
Cost of conversion package Most no cost Free
Versions available Win 98/2000/ Win 98/ME/
ME/NT/XP 2000/XP/NT
State packages available? All Some
Multistate packages available? Yes Yes
IRS data displayed on screen? No Yes
Vendor data displayed on screen? Yes Yes
Batch processing? Yes Yes
Heads-down data entry? Yes Yes
Customizable-program-
management-tools (CPMT)
reports? Yes Yes
CPMT organizers? No Yes
CPMT labels? Yes Yes
CPMT client letters? Yes Yes
CPMT scheduling programs? No No
990? Yes Yes
990 included with 1040? No No
990 conversion? No No
709? Yes No
709 included with 1040? No N/A
709 conversion? No N/A
706? Yes No
706 included with 1040? No N/A
706 conversion? No N/A
1120S? Yes Yes
1120S included with 1040? No No
1120S conversion package? No Yes
1120? Yes Yes
1120 included with 1040? No No
1120 conversion? No Yes
1065? Yes Yes
1065 included with 1040? No No
1065 conversion package? No Yes
1041? Yes Yes
1041 included with 1040? No No
1041 conversion? No No
Orrtax Rhodes
Software Financial Services
IntelliTax TaxSlayer
Prices
1040 package $2,027 for $895
Super System
Renewal price $1,250 $795
State package Included with Included
Super System;
$100 each
State renewal Included with Included
Super System;
$100 each
Additional fee for
laser package? No No
Market
Date 2001 program shipped Oct. 2001 Dec. 5, 2001
Number of updates 13 N/A
Updates available online Yes Yes
Number of users 4,000 2,200
Percentage of renewals
from 2000 package 95% 97%
Support
Toll-free support number For some users No
Support hours (EST) 9-1; Sat. 10-10; 7:30-
during tax season Sun. 8-5 midnight
Number of support staff
during tax season 200 20
Packages available
Conversion package available Yes Yes
Cost of conversion package Included Free
Versions available Win 95/98/ Win 95/98/ME/
2000/NT/XP NT/2000/XP
State packages available? All All
Multistate packages available? Yes Yes
IRS data displayed on screen? Yes No
Vendor data displayed on screen? Yes Yes
Batch processing? Yes Yes
Heads-down data entry? No Yes
Customizable-program-
management-tools (CPMT)
reports? Yes Yes
CPMT organizers? Yes Yes
CPMT labels? Yes Yes
CPMT client letters? Yes Yes
CPMT scheduling programs? No No
990? Yes Yes
990 included with 1040? No Yes
990 conversion? No No
709? Yes No
709 included with 1040? No No
709 conversion? No No
706? Yes No
706 included with 1040? No No
706 conversion? No No
1120S? Yes Yes
1120S included with 1040? Yes Yes
1120S conversion package? No No
1120? Yes Yes
1120 included with 1040? Yes Yes
1120 conversion? No No
1065? Yes Yes
1065 included with 1040? Yes Yes
1065 conversion package? No No
1041? Yes Yes
1041 included with 1040? No Yes
1041 conversion? No No
Universal
Tax$imple Tax System
Tax$imple TaxWise
Prices
1040 package $695-$800 $789 retail;
bundles
available
Renewal price $695 $355 for
early renewal
State package $299-$375 $289 retail;
seasonable
discounts
available
State renewal $299 $159 for
early
renewal
Additional fee for
laser package? No No
Market
Date 2001 program shipped Jan. 1, 2002 Nov. 6, 2001
Number of updates 4 3
Updates available online Yes Yes
Number of users N/A 20,000+
Percentage of renewals
from 2000 package 95% 95%
Support
Toll-free support number No No
Support hours (EST) 8:30-7:30 9-10;
during tax season Sat. 9-5
Number of support staff
during tax season N/A 180
Packages available
Conversion package available Yes Yes
Cost of conversion package Free $200
Versions available Win 95/98/NT/ Win 2000/
2000/ME/XP XP/NT
State packages available? All All
Multistate packages available? Yes Yes
IRS data displayed on screen? Yes Yes
Vendor data displayed on screen? No No
Batch processing? Yes No
Heads-down data entry? No No
Customizable-program-
management-tools (CPMT)
reports? Yes Yes
CPMT organizers? Yes Yes
CPMT labels? Yes Yes
CPMT client letters? Yes Yes
CPMT scheduling programs? No No
990? Yes Yes
990 included with 1040? No No
990 conversion? No No
709? Yes Yes
709 included with 1040? No No
709 conversion? No No
706? Yes Yes
706 included with 1040? No No
706 conversion? No No
1120S? Yes Yes
1120S included with 1040? No No
1120S conversion package? No No
1120? Yes Yes
1120 included with 1040? No No
1120 conversion? No No
1065? Yes Yes
1065 included with 1040? No No
1065 conversion package? No No
1041? Yes Yes
1041 included with 1040? No No
1041 conversion? No No
STANLEY Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley. ZAROWIN is a senior editor on the JofA. Mr. Zarowin is an employee of the AICPA AICPA See American Institute of Certified Public Accountants (AICPA). , and his views, as expressed in this article, do not necessarily reflect the views of the Institute. Official positions are determined through certain specific committee procedures, due process and deliberation deliberation n. the act of considering, discussing, and, hopefully, reaching a conclusion, such as a jury's discussions, voting and decision-making. DELIBERATION, contracts, crimes. . |
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