Tax software 2007: the market narrows, but products improve.With the passing of the 2005 tax season and summer vacations Summer vacation (also called summer holidays or summer break) is a vacation in the summertime between school years in which students are off for 3 months, depending on the country and district. , tax practitioners are gearing up for their annual shopping ritual--deciding what brand of tax-preparation software to purchase for tax year 2006. As the latest Journal of Accountancy annual tax-preparation software survey shows, 6% of CPAs switched brands last year, and this year at least another 4% will definitely def·i·nite adj. 1. Having distinct limits: definite restrictions on the sale of alcohol. 2. Indisputable; certain: a definite victory. 3. chuck their current brand (see exhibit 3, page 38). The turnover might be accelerated by the additional 9% who were considering a change, but remained unsure of what product they would buy next year. This article details the responses of 2,248 members of the AICPA's Tax Section who were asked to assess various aspects of the tax software product they used, technical and price information about each product and the special services they provided to tax preparers. As you check out this year's software choices, you'll you'll Contraction of you will. you'll you will or you shall you'll will immediately see that the variety of products has narrowed. This consolidation process has been going on for several years. Most recently Dunphy
1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices. 2. In underwriting, when an issue has been completely sold to the public. 3. by software giant Thomson Tax & Accounting; Accountware was folded after tax season last year and Dunphy this year. Further evidence of the narrowing market was apparent by the decline in the number of products that generated sufficient responses to make it into the survey results. This year only 10 products generated enough responses, down from 13 last fear (see exhibit 1, page 35, and exhibit 2, page 36). BETTER AND FASTER Despite some isolated pockets of dissatisfaction, accountants in general found this year's tax software worked better and faster, as vendors continued to tweak To make minor adjustments in an electronic system or in a software program in order to improve performance. See calibrate. 1. tweak - To change slightly, usually in reference to a value. Also used synonymously with twiddle. their products, upgrading the code and filtering out bugs and other irritations. Because of a change in the way the JofA measured the satisfaction index this year, we couldn't could·n't Contraction of could not. couldn't could not precisely quantify Quantify - A performance analysis tool from Pure Software. how much happier CPAs were with their current products. However, one very unscientific--but probably very accurate--indicator of user satisfaction was the sharp decline in the number and exasperation Exasperation See also Frustration, Futility. Carter, Sergeant Marine corps sergeant exasperated by Gomer’s ceaseless stupidity. [TV: “Gomer Pyle, U.S.M.C. levels of reports we received from CPAs frustrated frus·trate tr.v. frus·trat·ed, frus·trat·ing, frus·trates 1. a. To prevent from accomplishing a purpose or fulfilling a desire; thwart: with the way the software performed or their vendor's tech support. The most widely used product according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. our survey was ProSystem fx Tax, with 27% of the survey responses (see exhibit 3). Lacerte Tax was hard on its heels with 24.9%. The software product that scored the highest overall satisfaction rating (exhibit 2) was TaxACT TaxACT is a tax return preparation software for the US Market. TaxACT is developed and marketed by 2nd Story Software, Inc. The company claims to have done 18 million tax returns since they started their service. Preparer's Edition, with a rating of 1.30 (where 1=very satisfied and 4=very dissatisfied dis·sat·is·fied adj. Feeling or exhibiting a lack of contentment or satisfaction. dis·sat  is·fied ), followed by
Lacerte and Ultra Tax CS, each with 1.31. TaxACT also scored highest for
its ease of installation (1.07), learning (1.11) and use (1.22) and the
way it ran on a network (1.00).
Some of the most significant information in this survey details the brands users abandoned last year, the reasons they switched and the products they planned to purchase this year (exhibit 3). TaxWise appears to have won the highest percentage of converts this year with 12.5%. And the products with the highest loyalty rating--that is, the ones users planned to stick with--were UltraTax, with 94.3%, and Lacerte, with 91.8%. However, be aware that TaxWise's rating was based on the judgment of only 24 reviewers (see "Use Caution in Interpreting in·ter·pret v. in·ter·pret·ed, in·ter·pret·ing, in·ter·prets v.tr. 1. To explain the meaning of: interpreted the ambassador's remarks. See Synonyms at explain. These Data," page 37). One statistic statistic, n a value or number that describes a series of quantitative observations or measures; a value calculated from a sample. statistic a numerical value calculated from a number of observations in order to summarize them. that surprised us was how important a role price played in the decision to switch brands; we would have thought that for such an important product, price would have been a more minor factor. SIZE DOES MATTER In exhibit 3 we correlated cor·re·late v. cor·re·lat·ed, cor·re·lat·ing, cor·re·lates v.tr. 1. To put or bring into causal, complementary, parallel, or reciprocal relation. 2. firm size with product choices and found that size certainly did matter. With few exceptions, the Big Four and national firms relied on GoSystem Tax RS. ProSystem fx made a small showing among national firms; among regional firms the favorites Another term for bookmarks, which was popularized by Microsoft's Internet Explorer browser. See favicon and Internet Explorer. were GoSystem (22.5%) and ProSystem fx (14.7%). Among local firms, the distribution pattern looks like this: UltraTax (64.5%), ProSystem fx (62.0%) and TaxWorks (61.8%). Sole proprietors favored TaxACT (100%) and ATX See ATX motherboard. (hardware, standard) ATX - An open PC motherboard specification by Intel. ATX is a development of the Baby AT specification with the motherboard rotated 90 degrees in the chassis. Max (85.6%). Of all the products, only ProSystem fx, TaxWorks and UltraTax made a showing in all the size categories. From the users' point of view, one of the most critical assessment areas was technical support. After all, when the software fails on April 14, a tax preparer expects the vendor's tech desk to answer the phone--and the question--immediately The help desks that responded to users' calls the fastest were Drake drake 1. male duck. 2. loliumtemulentum. Software and TaxWise, each with a 1.2 rating (exhibit 4, page 40). Close behind were TaxACT and UltraTax, with 1.3. When scored for how satisfied CPAs were with the support, TaxACT led with 1.1, followed by UltraTax with 1.3. GoSystem was last with 2.0. But considering it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have one of the most complex products, used heavily by the Big Four and national firms, that's understandable. Given the choice between receiving support via telephone or e-mails, CPAs clearly preferred the phone. SPECIAL CLIENT SERVICES This year fewer firms in the survey offered tax-refund advances as part of their special services (exhibit 5, page 40)--just 4.5%, down from 5.7% last year. The biggest changes: 11.1% of Drake users provided the service this year, off from 21% last year. But TaxWise customers offered it more frequently--16.7% this year, up from 10.5% last year. Meanwhile, the percentage of customers who used the tax-refund-advance service more than doubled, to 13.9% from 6.5% last year. TaxACT users said 45% of their customers sought the service; ATX customer use rose sharply to 20% from 7.1% and ProSeries users posted a gain to 12.8% from 7.5%. Despite the customer demand, the percentage of firms that planned to offer the service next year remained unchanged, at about 5%. Online organizers : Top - 0–9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A
v. so·phis·ti·cat·ed, so·phis·ti·cat·ing, so·phis·ti·cates v.tr. 1. To cause to become less natural, especially to make less naive and more worldly. 2. of taxpayers. As a result more vendors likely will promote their organizers more vigorously vig·or·ous adj. 1. Strong, energetic, and active in mind or body; robust. See Synonyms at healthy. 2. Marked by or done with force and energy. See Synonyms at active. this year. Each year, as users become more technologically sophisticated, more of them file tax returns electronically This year 55.5% of federal returns were e-filed, up from 43.3% last year (exhibit 6, page 42). The percentage of state e-files also rose, to 48.3% from 38.6%. SELECTING A NEW, PRODUCT While this article provides a useful tool for deciding whether to renew your tax software contract or shop for a new one, we caution readers against basing your purchasing decision fully on these data or even on the judgment of a trusted colleague. The fact that a product is an excellent fit for others does not mean it's the right one for you. It all depends on the unique profiles of your clients and how you operate your tax-preparation business. The only way to ensure that a product fits your needs is to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. an evaluation copy and put the product through its paces using live data. This does require a major investment of time. But it's better to make that investment now than to wait until tax season and discover the product is ill-suited ill-suited adj [couple] → incompatible; he is ill-suited to the job → no es la persona indicada para el trabajo ill-suited adj [couple for your needs. We wish you success in finding the best software to fit your requirements. Use Caution in Interpreting These Data As accountants, you know only too well how treacherous numbers can be--that is, until you know their source and how they were calculated. And that goes for the numbers in this survey, too. Rather than taking the survey's satisfaction ratings at face value, first check the number of responses the product received as a way to assess a ratings degree of credibility Believability. The major legal application of the term credibility relates to the testimony of a witness or party during a trial. Testimony must be both competent and credible if it is to be accepted by the trier of fact as proof of an issue being litigated. . No matter how carefully surveys are prepared, they are, after all, just averages and rough guides. Furthermore, each score's margin of error is in inverse proportion an equality between a direct ratio and a reciprocal ratio; thus, See also: Inverse 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, a former JofA senior editor, is now a contributing editor A contributing editor is a magazine job title that varies in responsibilities. Most often, a contributing editor is a freelancer who has proven ability and readership draw. to the magazine. His e-mail address See Internet address. e-mail address - electronic mail address is stanley@zarowin.com
Exhibit 1 Tax Software Vendors
Tax program name Vendor Postal address
ATX Max ATX P.O. Box 1040
Caribou, ME 04736
Drake Software Drake Software 235 East Palmer St.
Franklin, NC 28734
GoSystem Tax RS Thomson Tax & 2395 Midway Road
Accounting Building 1
Carrollton, TX 75006
Lacerte Tax Intuit Lacerte Software Corp.
5601 Headquarters Dr.
Plano, TX 75024
ProSeries Professional Intuit Lacerte Software Corp.
5601 Headquarters Dr.
Plano, TX 75024
ProSystem fx Tax CCH 21250 Hawthorne Blvd.
Torrance, CA 90503
TaxACT Preparer's Edition 2nd Story 5925 Dry Creek Ln., NE
Software Cedar Rapids, IA 52402
TaxWise Universal Tax 6 Mathis Dr., NW
Systems Inc. Rome, GA 30165
TaxWorks TaxWorks LLC 350 North 400 West
Kaysville, UT 84037
UItraTax CS Thomson Creative 7322 Newman Blvd.
Solutions Dexter, MI 48130
Tax program name Telephone number E-mail address
ATX Max 877-728-9776 sales@atxinc.com
Drake Software 800-890-9500 info@drakesoftware.com
GoSystem Tax RS 800-726-1040 gosystem.sales@
thomson.com
Lacerte Tax 800-765-7777 Lacerte_Sales@
intuit.com
ProSeries Professional 800-934-1040 ProSeries_Sales@
intuit.com
ProSystem fx Tax 800-739-9998 sales@prosystemfx.com
TaxACT Preparer's Edition 800-573-4287 support@taxact.com
TaxWise 800-755-9473 sales@taxwise.com
TaxWorks 800-230-2322 sales@taxworks.com
UItraTax CS 800-968-8900 teresa.mackintosh@
thomson.com
Exhibit 2 Rating the Tax Software
Were you
satisfied
with the With the
Tax Number of installation ease of
program respondents process? learning?
ATX Max 146 1.24 1.47
Drake Software 63 1.14 1.44
GoSystem Tax RS 80 1.58 2.35
Lacerte Tax 559 1.33 1.59
ProSeries Professional 320 1.29 1.46
ProSystem fx Tax 606 1.71 2.10
TaxACT Preparer's Edition 27 1.07 1.11
TaxWise 24 1.33 1.67
TaxWorks 34 1.32 1.41
UltraTax CS 389 1.34 1.67
Total 2,248
With the way
the software Overall
Tax With the ran on your product
program ease of use? network? rating
ATX Max 1.51 1.53 1.43
Drake Software 1.49 1.17 1.37
GoSystem Tax RS 2.28 1.36 1.96
Lacerte Tax 1.51 1.40 1.31
ProSeries Professional 1.42 1.54 1.37
ProSystem fx Tax 1.89 1.23 1.45
TaxACT Preparer's Edition 1.22 1.00 1.30
TaxWise 1.50 1.29 1.58
TaxWorks 1.53 1.32 1.44
UltraTax CS 1.61 1.28 1.31
Total
If you
switched
Percentage to a new
who said product this
the product year, did How good
contained all you run its was it?
Tax the necessary conversion (1=good,
program forms package? 4=poor)
ATX Max 97.3% 100.0% 2.00
Drake Software 87.3% 100.0% 2.25
GoSystem Tax RS 70.0% 100.0% 1.83
Lacerte Tax 86.8% 92.3% 1.92
ProSeries Professional 75.9% 100.0% 1.67
ProSystem fx Tax 85.0% 100.0% 2.28
TaxACT Preparer's Edition 77.8% 100.0% 1.00
TaxWise 87.5% 100.0% 3.33
TaxWorks 91.2% 100.0% 1.67
UltraTax CS 92.3% 100.0% 1.73
Total
Satisfaction: 1 = very satisfied, 4 = very dissatisfied
Exhibit 3 Product Selection
Products respondents used, switched to and their future plans
Reasons for switching products
Percentage
who
converted
from another
tax software
Tax Number of Percentage product
program respondents of responses this year
ATX Max 146 6.5% 8.2%
Drake Software 63 2.8% 6.3%
GoSystem Tax RS 80 3.6% 7.5%
Lacerte Tax 559 24.9% 2.3%
ProSeries Professional 320 14.2% 4.7%
ProSystem fx Tax 606 24.0% 3.0%
TaxACT Preparer's Edition 27 1.2% 3.7%
TaxWise 24 1.1% 12.5%
TaxWorks 34 1.6% 8.8%
UltraTax CS 389 17.3% 5.7%
Total 2,248
Percentage
Percentage who didn't Not sure
who planned plan to use about using
to use the the same the same
Tax same product product product
program next year next year next year
ATX Max 84.2% 7.5% 8.2%
Drake Software 88.9% 4.8% 6.3%
GoSystem Tax RS 81.3% 5.0% 13.8%
Lacerte Tax 91.8% 1.6% 6.6%
ProSeries Professional 88.1% 3.8% 8.1%
ProSystem fx Tax 91.6% 2.0% 6.4%
TaxACT Preparer's Edition 81.5% 0.00% 18.5%
TaxWise 83.3% 4.2% 12.5%
TaxWorks 88.2% 2.9% 8.8%
UltraTax CS 94.3% 2.1% 3.6%
Total
Number
Number that already
planning to switched
Tax switch to to this
program this product product Price
ATX Max 11 12 66.7%
Drake Software 3 4 75.0%
GoSystem Tax RS 4 6 16.7%
Lacerte Tax 9 13 7.7%
ProSeries Professional 12 15 13.3%
ProSystem fx Tax 12 18 11.1%
TaxACT Preparer's Edition 0 1 100.0%
TaxWise 1 3 100.0%
TaxWorks 1 3 66.7%
UltraTax CS 8 22 50.0%
Total
Tax Hard to use Poor
program or install support
ATX Max 0.0% 0.0%
Drake Software 0.0% 0.0%
GoSystem Tax RS 0.0% 33.3%
Lacerte Tax 15.4% 23.1%
ProSeries Professional 6.7% 13.3%
ProSystem fx Tax 11.1% 16.7%
TaxACT Preparer's Edition 0.0% 0.0%
TaxWise 0.0% 33.3%
TaxWorks 0.0% 0.0%
UltraTax CS 4.5% 9.1%
Total
Lacked
Tax necessary Was not
program functions accurate
ATX Max 16.7% 0.0%
Drake Software 0.0% 0.0%
GoSystem Tax RS 50.0% 33.3%
Lacerte Tax 46.2% 23.1%
ProSeries Professional 33.3% 26.7%
ProSystem fx Tax 27.8% 22.2%
TaxACT Preparer's Edition 0.0% 0.0%
TaxWise 0.0% 0.0%
TaxWorks 33.3% 0.0%
UltraTax CS 13.6% 4.5%
Total
Products used by respondents (broken down by firm size)
Tax Number of Sole Local
program respondents proprietor firm
ATX Max 146 85.6% 13.0%
Drake Software 63 68.3% 30.2%
GoSystem Tax RS 80 5.0% 32.5%
Lacerte Tax 559 42.6% 54.4%
ProSeries Professional 320 65.0% 34.1%
ProSystem fx Tax 606 20.8% 62.0%
TaxACT Preparer's Edition 27 100.0% 0.0%
TaxWise 24 66.7% 33.3%
TaxWorks 34 35.3% 61.8%
UltraTax CS 389 32.9% 64.5%
Tax Regional National Big Four
program firm firm firm
ATX Max 0.0% 1% 0.7%
Drake Software 1.6% 0.0% 0.0%
GoSystem Tax RS 22.5% 20.0% 20.0%
Lacerte Tax 2.9% 0.2% 0.0%
ProSeries Professional 0.9% 0.0% 0.0%
ProSystem fx Tax 14.7% 2.1% 0.3%
TaxACT Preparer's Edition 0.0% 0.0% 0.0%
TaxWise 0.0% 0.0% 0.0%
TaxWorks 2.9% 0.0% 0.0%
UltraTax CS 2.1% 0.5% 0.0%
Exhibit 4 Technical Support Assessments
What
was your
experience
in reaching
Percentage your vendor
of users for
needing technical How good was
technical support? the support?
support (1=good, (1=good,
Tax program from vendor 4=poor) 4=poor)
ATX Max 71.9% 1.7 1.8
Drake Software 92.1% 1.2 1.4
GoSystem Tax RS 85.0% 1.9 2.0
Lacerte Tax 81.2% 1.5 1.5
ProSeries Professional 57.5% 1.6 1.6
ProSystern fx Tax 87.8% 1.5 1.6
TaxACT Preparer's Edition 25.9% 1.3 1.1
TaxWise 83.3% 1.2 1.5
TaxWorks 94.1% 1.5 1.5
UltraTax CS 80.7% 1.3 1.3
Average 76.0% 1.5 1.5
If you
received
telephone
support,
Percentage Percentage how good
receiving receiving was it?
telephone e-mail (1=good,
Tax program support support 4=poor)
ATX Max 94.3% 89.5% 1.7
Drake Software 100.0% 81.0% 1.4
GoSystem Tax RS 100.0% 58.8% 2.0
Lacerte Tax 98.2% 69.6% 1.5
ProSeries Professional 98.9% 59.8% 1.5
ProSystern fx Tax 99.8% 49.6% 1.5
TaxACT Preparer's Edition 100.0% 85.7% 1.1
TaxWise 100.0% 85.0% 1.4
TaxWorks 100.0% 71.9% 1.5
UltraTax CS 99.7% 78.7% 1.3
Average 99.1% 73.0% 1.5
If you
received
e-mail How well did
support, software run
how good on your
was it? network?
(1=good, (1=good,
Tax program 4=poor) 4=poor)
ATX Max 1.8 1.5
Drake Software 1.5 1.2
GoSystem Tax RS 1.9 1.4
Lacerte Tax 1.7 1.4
ProSeries Professional 1.8 1.5
ProSystern fx Tax 1.6 1.2
TaxACT Preparer's Edition 1.0 1.0
TaxWise 1.6 1.3
TaxWorks 1.4 1.3
UltraTax CS 1.5 1.3
Average 1.6 1.3
Exhibit 5 Special Client Services
Percentage Percentage Percentage
of users of users of users
charging planning to offering
extra for charge extra tax-refund
Tax program e-filing next year advances
ATX Maxy 11.0% 22.6% 6.8%
Drake Software 7.9% 11.1% 11.1%
GoSystem Tax RS 33.8% 40.0% 0.0%
Lacerte Tax 25.6% 32.6% 0.7%
ProSeries Professional 27.5% 33.4% 5.0%
ProSystern fx Tax 23.8% 27.4% 0.2%
TaxACT Preparer's Edition 55.6% 66.7% 3.7%
TaxWise 12.5% 8.3% 16.7%
TaxWorks 38.2% 38.2% 0.0%
UltraTax CS 24.4% 27.5% 1.3%
Average 26.0% 30.8% 4.5%
Percentage
planning
to offer
Percentage tax-refund
of clients advances
Tax program using them next year
ATX Maxy 20.0% 6.2%
Drake Software 11.5% 14.3%
GoSystem Tax RS 0.0% 0.0%
Lacerte Tax 24.7% 1.6%
ProSeries Professional 12.8% 5.9%
ProSystern fx Tax 0.0% 0.8%
TaxACT Preparer's Edition 45.0% 3.7%
TaxWise 12.7% 16.7%
TaxWorks 0.0% 0.0%
UltraTax CS 12.4% 1.8%
Average 13.9% 5.1%
Percentage
offering
online Percentage
organizers of clients
Tax program this year using them
ATX Maxy 12.3% 21.8%
Drake Software 11.1% 16.7%
GoSystem Tax RS 25.0% 13.2%
Lacerte Tax 21.3% 11.9%
ProSeries Professional 11.6% 23.7%
ProSystern fx Tax 28.1% 10.4%
TaxACT Preparer's Edition N/A N/A
TaxWise 16.7% 28.7%
TaxWorks 26.5% 31.7%
UltraTax CS 26.7% 9.7%
Average 19.9% 18.6%
Exhibit 6 Filing Statistics
How many tax returns did your firm prepare?
Tax program 0-50 51-100 101-200
ATX Max 21.9% 19.9% 27.4%
Drake Software 11.1% 12.7% 17.5%
GoSystem Tax RS 26.3% 15.0% 13.8%
Lacerte Tax 8.9% 8.4% 14.8%
ProSeries Professional 17.5% 11.6% 21.9%
ProSystern fx Tax 7.3% 8.6% 10.7%
TaxACT Preparer's Edition 66.7% 22.2% 11.1%
TaxWise 8.3% 16.7% 4.2%
TaxWorks 5.9% 2.9% 17.6%
UltraTax CS 4.1% 7.2% 12.1%
Tax program 201-500 501-1,000 1,001-2,000
ATX Max 24.0% 5.5% 1.4%
Drake Software 31.7% 17.5% 7.9%
GoSystem Tax RS 17.5% 12.5% 3.8%
Lacerte Tax 34.0% 19.5% 9.7%
ProSeries Professional 29.7% 15.9% 3.1%
ProSystern fx Tax 26.6% 21.0% 14.7%
TaxACT Preparer's Edition 0.0% 0.0% 0.0%
TaxWise 33.3% 29.2% 4.2%
TaxWorks 44.1% 14.7% 14.7%
UltraTax CS 34.2% 23.4% 14.4%
Tax program 2,001-5,000 5,001-10,000 10,001+
ATX Max 0.0% 0.0% 0.0%
Drake Software 0.0% 1.6% 0.0%
GoSystem Tax RS 3.8% 5.0% 2.5%
Lacerte Tax 4.1% 0.0% 0.2%
ProSeries Professional 0.3% 0.0% 0.0%
ProSystern fx Tax 10.1% 1.0% 0.2%
TaxACT Preparer's Edition 0.0% 0.0% 0.0%
TaxWise 0.0% 0.0% 4.2%
TaxWorks 0.0% 0.0% 0.0%
UltraTax CS 4.1% 0.5% 0.0%
What proportion was for individuals?
Tax program 0% 1%-20% 21%-50%
ATX Max 0.0% 0.7% 5.5%
Drake Software 0.0% 0.0% 3.3%
GoSystern Tax RS 14.1% 11.5% 33.3%
Lacerte Tax 0.0% 1.5% 9.6%
ProSeries Professional 0.0% 0.6% 9.7%
ProSystern fx Tax 0.8% 3.7% 20.3%
TaxACT Preparer's Edition 0.0% 0.0% 0.0%
TaxWse 0.0% 0.0% 4.2%
TaxWorks 0.0% 3.0% 9.1%
UltraTax CS 0.5% 1.3% 12.2%
Tax program 51%-70% 71%-90% 91%-100%
ATX Max 20.7% 51.0% 22.1%
Drake Software 19.7% 70.5% 6.6%
GoSystern Tax RS 12.8% 19.2% 9.0%
Lacerte Tax 33.3% 50.6% 5.0%
ProSeries Professional 23.6% 51.8% 14.2%
ProSystern fx Tax 38.9% 32.0% 4.2%
TaxACT Preparer's Edition 11.5% 26.9% 61.5%
TaxWse 12.5% 54.2% 29.2%
TaxWorks 30.3% 57.6% 0.0%
UltraTax CS 37.8% 45.8% 2.3%
What proportion was for business?
Tax program 0% 1%-20% 21%-50%
ATX Max 9.7% 44.1% 44.1%
Drake Software 1.6% 49.2% 49.2%
GoSystem Tax RS 5.1% 15.4% 34.6%
Lacerte Tax 1.8% 34.0% 58.0%
ProSeries Professional 5.8% 40.1% 48.9%
ProSystem fx Tax 2.0% 20.0% 62.6%
TaxACT Preparer's Edition 38.5% 46.2% 15.4%
TaxWse 20.8% 54.2% 20.8%
TaxWorks 0.0% 36.4% 57.6%
UltraTax CS 1.0% 27.6% 62.5%
Tax program 51%-70% 71%-90% 91%-100%
ATX Max 0.7% 0.7% 0.7%
Drake Software 0.0% 0.0% 0.0%
GoSystem Tax RS 15.4% 15.4% 14.1%
Lacerte Tax 3.5% 2.0% 0.6%
ProSeries Professional 4.2% 1.0% 0.0%
ProSystem fx Tax 7.7% 6.2% 1.5%
TaxACT Preparer's Edition 0.0% 0.0% 0.0%
TaxWse 4.2% 0.0% 0.0%
TaxWorks 3.0% 3.0% 0.0%
UltraTax CS 6.3% 2.1% 0.5%
How many federal returns did your firm file?
Tax program 0 1-50 51-100
ATX Max 0.0% 24.0% 24.7%
Drake Software 0.0% 11.1% 15.9%
GoSystem Tax RS 0.0% 31.3% 16.3%
Lacerte Tax 0.5% 9.7% 13.2%
ProSeries Professional 0.0% 17.5% 17.2%
ProSystem fx Tax 0.2% 8.1% 15.0%
TaxACT Preparer's Edition 3.7% 66.7% 18.5%
TaxWise 0.0% 12.5% 20.8%
TaxWorks 0.0% 5.9% 11.8%
UltraTax CS 0.0% 5.1% 14.1%
Tax program 101-200 201-500 501-1,000
ATX Max 25.3% 20.5% 4.1%
Drake Software 15.9% 30.2% 17.5%
GoSystem Tax RS 11.3% 16.3% 10.0%
Lacerte Tax 14.5% 32.9% 17.2%
ProSeries Professional 20.3% 29.1% 13.1%
ProSystem fx Tax 10.1% 25.6% 19.5%
TaxACT Preparer's Edition 11.1% 0.0% 0.0%
TaxWise 4.2% 45.8% 16.7%
TaxWorks 14.7% 41.2% 11.8%
UltraTax CS 10.8% 33.9% 20.6%
Tax program 1,001-2,000 2,001-5,000
ATX Max 1.4% 0.0%
Drake Software 7.9% 0.0%
GoSystem Tax RS 5.0% 5.0%
Lacerte Tax 9.3% 2.7%
ProSeries Professional 2.8% 0.0%
ProSystem fx Tax 12.5% 8.9%
TaxACT Preparer's Edition 0.0% 0.0%
TaxWise 0.0% 0.0%
TaxWorks 14.7% 0.0%
UltraTax CS 11.8% 3.3%
Tax program 5,001-10,000 10,000+
ATX Max 0.0% 0.0%
Drake Software 1.6% 0.0%
GoSystem Tax RS 2.5% 2.5%
Lacerte Tax 0.0% 0.0%
ProSeries Professional 0.0% 0.0%
ProSystem fx Tax 0.2% 0.0%
TaxACT Preparer's Edition 0.0% 0.0%
TaxWise 0.0% 0.0%
TaxWorks 0.0% 0.0%
UltraTax CS 0.3% 0.0%
How many state returns did your firm file?
Tax program 0 1-50 51-100
ATX Max 3.4% 36.3% 17.1%
Drake Software 0.0% 19.0% 14.3%
GoSystem Tax RS 1.3% 32.5% 12.5%
Lacerte Tax 1.1% 21.3% 8.8%
ProSeries Professional 1.9% 32.5% 12.5%
ProSystem fx Tax 1.3% 14.7% 9.6%
TaxACT Preparer's Edition 14.8% 59.3% 14.8%
TaxWise 4.2% 16.7% 20.8%
TaxWorks 0.0% 29.4% 2.9%
UltraTax CS 1.3% 16.2% 9.3%
Tax program 101-200 201-500 501-1,000
ATX Max 22.6% 16.4% 3.4%
Drake Software 17.5% 25.4% 14.3%
GoSystem Tax RS 12.5% 16.3% 11.3%
Lacerte Tax 13.4% 29.5% 15.7%
ProSeries Professional 17.2% 24.7% 8.4%
ProSystem fx Tax 12.2% 24.3% 17.8%
TaxACT Preparer's Edition 11.1% 0.0% 0.0%
TaxWise 0.0% 37.5% 16.7%
TaxWorks 11.8% 32.4% 11.8%
UltraTax CS 11.3% 31.9% 17.2%
Tax program 1,001-2,000 2,001-5,000
ATX Max 0.7% 0.0%
Drake Software 7.9% 0.0%
GoSystem Tax RS 2.5% 5.0%
Lacerte Tax 8.1% 2.1%
ProSeries Professional 2.8% 0.0%
ProSystem fx Tax 12.0% 7.9%
TaxACT Preparer's Edition 0.0% 0.0%
TaxWise 4.2% 0.0%
TaxWorks 11.8% 0.0%
UltraTax CS 9.8% 2.6%
Tax program 5,001-10,000 10,000+
ATX Max 0.0% 0.0%
Drake Software 1.6% 0.0%
GoSystem Tax RS 3.8% 2.5%
Lacerte Tax 0.0% 0.0%
ProSeries Professional 0.0% 0.0%
ProSystem fx Tax 0.2% 0.0%
TaxACT Preparer's Edition 0.0% 0.0%
TaxWise 0.0% 0.0%
TaxWorks 0.0% 0.0%
UltraTax CS 0.5% 0.0%
Electronic filing of tax returns
Percentage Percentage
of federal of federal
returns returns
e-filed e-filed
Tax program this year last year
ATX Max 61.1% 47.2%
Drake Software 68.3% 57.5%
GoSystem Tax RS 22.1% 13.4%
Lacerte Tax 54.4% 44.2%
ProSeries Professional 48.3% 36.3%
ProSystem fx Tax 49.7% 38.1%
TaxACT Preparer's Edition 56.9% 36.7%
TaxWise 77.5% 67.5%
TaxWorks 62.5% 48.9%
UltraTax CS 54.0% 42.7%
Average 55.5% 43.3%
Percentage Percentage
of state of state
returns returns
e-filed e-filed
Tax program this year last year
ATX Max 55.2% 44.1%
Drake Software 65.1% 54.3%
GoSystem Tax RS 20.1% 13.9%
Lacerte Tax 47.2% 37.4%
ProSeries Professional 40.5% 31.2%
ProSystem fx Tax 40.7% 31.1%
TaxACT Preparer's Edition 48.3% 35.3%
TaxWise 66.1% 58.5%
TaxWorks 51.5% 41.5%
UltraTax CS 47.8% 38.4%
Average 48.3% 38.6%
Exhibit 7 Product Details
GoSystem
ATX Max Drake Software Tax RS
Product prices
1040 $1,065 $995-$1,395 Beginning at
$2,500
1040 renewal Early renewal: Same Same
10% off
State package Included Included Included
State renewal Early renewal: Included Included
10% off
Additional fee No No No
for laser
package
Per-return $165 per $10 per return No
pricing 10 returns
Additional cost No No No
for electronic
filing software
Additional No No $5 per federal;
cost per $3 per state
electronically
filed return
Conversion Yes Yes Yes
package
available
Cost of Free Free Call for
conversion details
package
Filing
Do you provide Both SB DF
direct filing
(DF), service
bureau (SB)
or both?
Can you Yes Yes Yes
electronically
file state
returns?
Do you allow Yes Yes Yes
for electronic
signature?
Market
Number of 50,000 N/A 75,000
individual
users of 2005
package
Number of firms N/A 20,204 N/A
using product
Percentage of 90% 95% 95.9%
renewals from
2004 package
Number of years 14 29 41
in business
Support
Toll-free phone Yes No Yes
number for
support
Hours (Eastern M-F 8-10; M-F 8-10; M-F 9-8;
time) support Sat 9-5 Sat 8-6 Sat 10-6;
available during Sun 11-5
tax season
Hours support M-F 8-10; M-F 8-9; M-F 9-8
available Sat 9-5 Sat 9-5
during
off-season
Number of 125 200 138
support staff
during tax
season
Online support Yes Yes Yes
Technology
What operating Windows 98 Windows 98 Windows XP
system(s) does and above and up and NT
product run on? (4.0 or higher)
Recommended Windows XP Windows 98 and Windows XP
operating and above up and NT Professional
system (4.0 or higher)
Program size 350 Mb 87 Mb without 9.52 Mb
states
installed;
233 Mb with
all states
installed
Minimum RAM 128 Mb 64 Mb for 256 Mb
recommended Windows 95, 98, minimum;
2000 or NT; 512 Mb
128 Mb for recommended
Windows ME
or XP
Display and data
IRS data Yes Yes Yes
displayed
on-screen
Vendor data Yes Yes Yes
displayed
on-screen
Batch processing Yes Yes Yes
Heads-down No Yes Yes
data entry
Program management tools
Does your program produce:
Reports Yes Yes Yes
Organizers Yes Yes Yes
Labels Yes Yes Yes
Client letters Yes Yes Yes
Scheduling No Yes Yes
program
Other packages available
Online No Yes Yes
tax-preparation
option
State packages Yes Yes Yes
available
Multistate Yes Yes Yes
package
available
Does your product include the following:
1120 Yes Yes Yes
Included in Yes Yes Yes
price of 1040
1120S Yes Yes Yes
Included in Yes Yes Yes
price of 1040
1065 Yes Yes Yes
Included in Yes Yes Yes
price of 1040
1041 Yes Yes Yes
Included in Yes Yes Yes
price of 1040
990 Yes Yes Yes
Included in Yes Yes Yes
price of 1040
706 Yes Yes Yes
Included in Yes Yes Yes
price of 1040
709 Yes Yes Yes
Included in Yes Yes Yes
price of 1040
States covered All All All
ProSeries ProSystem
Lacerte Tax Professional fx Tax
Product prices
1040 $2,250 $999 $3,125
1040 renewal $1,913 Early renewal: Call for
Unlimited details
e-filing
State package $340 $999 $335 to $795
State renewal $289 Early renewal: Call for
Unlimited details
e-filing
Additional fee No No No
for laser
package
Per-return $30 per federal $15 per federal $28 per federal
pricing and one state 1040; $33 per
all others
Additional cost No No $100: federal
for electronic 1040 Package;
filing software $100: 1120/
1120S/1065
Package; $100:
1041/5500/990
Package;
$50/per state.
All states:
$500/per
package
Additional $2 per federal $3 per federal; 1040: $3 per
cost per and state; $2 per state; federal,
electronically $950: Unlimited $150: Unlimited $1 per state;
filed return for individual other returns:
or business $5 per federal,
$2 per state;
Unlimited
licensing also
available
Conversion Yes Yes Yes
package
available
Cost of Free Free Free
conversion
package
Filing
Do you provide Both SB Both
direct filing
(DF), service
bureau (SB)
or both?
Can you Yes Yes Yes
electronically
file state
returns?
Do you allow Yes Yes Yes
for electronic
signature?
Market
Number of N/A 70,000 N/A
individual
users of 2005
package
Number of firms 42,000 N/A 20,000
using product
Percentage of 95% N/A 95%
renewals from
2004 package
Number of years 26 20 40
in business
Support
Toll-free phone Yes Yes Yes
number for
support
Hours (Eastern Jan 9-Apr 18: M-F 8-11; M-F 8:30-9;
time) support M-F 9 am-9 pm; Sat 11-6; Sat 9-8;
available during Sat 10-5; Sun 12-5 Sun 10-6
tax season Sun 12-5; Key dates (24-hour
week before during the support
Mar 15 and last week of April 11-
April 15: tax season: April 15)
Sat 10-8; 24 hours
Sun 12-8
Hours support M-F 9-8 M-F 9-8 M-F 9-8
available
during
off-season
Number of 170 450 450
support staff
during tax
season
Online support Yes Yes Yes
Technology
What operating XP Professional Windows XP Windows
system(s) does or Home, Professional Millennium
product run on? Windows 2000, or Home and and up
Windows NT, Windows 2000
Windows 98
(pending for
2006 tax
product) and
Windows ME
Recommended Windows XP Windows XP Windows XP
operating Professional or
system Home
Program size 1040 and 512 Mb 100 Mb
one state: (includes
40 Mb-50 Mb laser forms)
Minimum RAM 256 Mb 256 Mb 256 Mb
recommended
Display and data
IRS data Yes Yes Yes
displayed
on-screen
Vendor data Yes Yes Yes
displayed
on-screen
Batch processing Yes Yes Yes
Heads-down Yes Yes Yes
data entry
Program management tools
Does your program produce:
Reports Yes Yes Yes
Organizers Yes Yes Yes
Labels Yes Yes Yes
Client letters Yes Yes Yes
Scheduling Yes Yes Yes
program
Other packages available
Online No No Yes
tax-preparation
option
State packages Yes Yes Yes
available
Multistate Yes Yes Yes
package
available
Does your product include the following:
1120 Yes Yes Yes
Included in No No No
price of 1040
1120S Yes Yes Yes
Included in No No No
price of 1040
1065 Yes Yes Yes
Included in No No No
price of 1040
1041 Yes Yes Yes
Included in No No No
price of 1040
990 Yes Yes Yes
Included in No No No
price of 1040
706 Yes Yes Yes
Included in No No No
price of 1040
709 Yes Yes Yes
Included in No No No
price of 1040
States covered All All All
TaxACT
Preparer's TaxWise
Edition Power Package
Product prices
1040 $99 $2,295
1040 renewal $79 $1,836
State package $12.95 each; Included
$51.80 for all
State renewal $12.95 each; Included
$51.80 for all
Additional fee N/A No
for laser
package
Per-return N/A $15 per
pricing individual
federal, state
and e-filing;
$30 per
business
federal, state
and e-filing
Additional cost N/A No
for electronic
filing software
Additional 1-25: $7.95 No
cost per federal, $3.50
electronically state; 26-50:
filed return $4.95 federal,
$2.50 state;
51-100: $1.95
federal, $1.95
state; 101+:
Free federal
and state;
Unlimited
federal EF:
$350; Unlimited
state EF: $150
Conversion No Yes
package
available
Cost of N/A Free
conversion
package
Filing
Do you provide SB Both
direct filing
(DF), service
bureau (SB)
or both?
Can you Yes Yes
electronically
file state
returns?
Do you allow Yes Yes
for electronic
signature?
Market
Number of N/A 75,000
individual
users of 2005
package
Number of firms N/A 12,000
using product
Percentage of N/A 95%
renewals from
2004 package
Number of years 9 20
in business
Support
Toll-free phone No Yes
number for
support
Hours (Eastern M-F 9-10; M-F
time) support Sat 9-6; 7:30-midnight;
available during Sun 1-6 Sat 8:30-6;
tax season Sun 1-4
Hours support M-F 9-6 M-F 8:30-6
available
during
off-season
Number of 75 350
support staff
during tax
season
Online support Yes Yes
Technology
What operating Window 95 Windows XP,
system(s) does and up 2000
product run on? Professional
(with Service
Pack 2) and
Windows NT
Workstation
(with Service
Pack 6a)
Recommended Windows 95 Windows XP
operating and up Professional
system
Program size 27 Mb 1 Gb
Minimum RAM 16 Mb 128 Mb
recommended
Display and data
IRS data Yes Yes
displayed
on-screen
Vendor data Yes Yes
displayed
on-screen
Batch processing No Yes
Heads-down No No
data entry
Program management tools
Does your program produce:
Reports Yes Yes
Organizers Yes Yes
Labels Yes Yes
Client letters Yes Yes
Scheduling No Yes
program
Other packages available
Online No Yes
tax-preparation
option
State packages Yes Yes
available
Multistate Yes Yes
package
available
Does your product include the following:
1120 Yes Yes
Included in No Yes
price of 1040
1120S Yes Yes
Included in No Yes
price of 1040
1065 Yes Yes
Included in No Yes
price of 1040
1041 No Yes
Included in N/A Yes
price of 1040
990 No Yes
Included in N/A Yes
price of 1040
706 No Yes
Included in N/A Yes
price of 1040
709 No Yes
Included in N/A Yes
price of 1040
States covered All except All
Tenn., Utah
TaxWorks UltraTax CS
Product prices
1040 $1,095 $2,000
1040 renewal $1,095 $1,750
State package $200 $225-$525
State renewal $200 $225-$525
Additional fee No No
for laser
package
Per-return $17 per state $17 per
pricing federal;
$10 per state
Additional cost No No
for electronic
filing software
Additional $1.50-$3 $2 per federal;
cost per per return $1 per state
electronically
filed return
Conversion Yes Yes
package
available
Cost of Free Free
conversion
package
Filing
Do you provide SB SB
direct filing
(DF), service
bureau (SB)
or both?
Can you Yes Yes
electronically
file state
returns?
Do you allow Yes Yes
for electronic
signature?
Market
Number of N/A 80,000
individual
users of 2005
package
Number of firms 6,000 20,000
using product
Percentage of 90% 95%
renewals from
2004 package
Number of years 34 25
in business
Support
Toll-free phone Yes Yes
number for
support
Hours (Eastern M-F 9-10; M-F 9-10;
time) support Sat 9-6 Sat 9-6;
available during select Sundays
tax season
Hours support M-F 10-7 M-F 9-8
available
during
off-season
Number of 30 150
support staff
during tax
season
Online support No Yes
Technology
What operating Windows 2000 Windows 2000
system(s) does and XP and XP
product run on?
Recommended Windows XP Windows 2000
operating and XP
system
Program size 800 Mb 20 Mb
Minimum RAM 128 Mb 512 Mb
recommended
Display and data
IRS data Yes Yes
displayed
on-screen
Vendor data Yes Yes
displayed
on-screen
Batch processing Yes Yes
Heads-down Yes Yes
data entry
Program management tools
Does your program produce:
Reports Yes Yes
Organizers Yes Yes
Labels Yes No
Client letters Yes Yes
Scheduling Yes Yes (integrated
program with Practice
CS)
Other packages available
Online No Yes
tax-preparation
option
State packages Yes Yes
available
Multistate Yes Yes
package
available
Does your product include the following:
1120 Yes Yes
Included in No No
price of 1040
1120S Yes Yes
Included in No No
price of 1040
1065 Yes Yes
Included in No No
price of 1040
1041 Yes Yes
Included in No No
price of 1040
990 Yes Yes
Included in No No
price of 1040
706 Yes Yes
Included in No No
price of 1040
709 Yes Yes
Included in No No
price of 1040
States covered All All
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