Tax software makes the grade: vendors improve their technology support.Tax practitioners had reason to celebrate this year: Their software, as assessed in the annual Journal of Accountancy survey of tax-preparation software, performed better than it did last year. Adding to the joy, they're they're Contraction of they are. they're be no longer threatened with the possible need to convert to a new software package to replace orphan orphan: see adoption; foundling hospital; guardian and ward. See widow & orphan. Orphan See also Abandonment. Adverse, Anthony finally, at middle age, discovers origins. [Am. Lit. products that competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. acquired and then folded. With the number of vendors down to fewer than 20, from a high of 110 a decade ago, hardly any products seem susceptible susceptible /sus·cep·ti·ble/ (su-sep´ti-b'l) 1. readily affected or acted upon. 2. lacking immunity or resistance and thus at risk of infection. sus·cep·ti·ble adj. to takeover To assume control or management of a corporation without necessarily obtaining actual title to it. A takeover bid or tender offer is a proposal made by one company to purchase shares of stock of another company, in order to acquire control thereof. . When asked to rate their overall satisfaction with the 13 tax software products in the survey this year, the 3,156 AICPA AICPA See American Institute of Certified Public Accountants (AICPA). Tax Section members who responded to the survey came up with a combined average score of 4.23 (out of a perfect 5.00), a significant gain from last year's 4.03. In addition to the eight packages rated last year, three new products received the minimum required 10 responses from our CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. 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. . (For details about all the vendors in the survey, see exhibit 1, page 49; for a complete scorecard on the satisfaction grades, see exhibit 2, page 50; and for technical details about the products, see exhibit 6, page 54.) Tied for first place in the overall-satisfaction category, with ratings of 4.46, were Intuit's highly popular Lacerte and the much smaller Dunphy
1. male duck. 2. loliumtemulentum. Software and Taxware System's Taxware Tax Preparation; both are new to the survey this year. BIG GAINS The area that posted the biggest improvement was technical support, scoring 4.22, compared with a woeful woe·ful also wo·ful adj. 1. Affected by or full of woe; mournful. 2. Causing or involving woe. 3. Deplorably bad or wretched: 2.93 last year. At that time tax preparers complained bitterly bit·ter adj. bit·ter·er, bit·ter·est 1. Having or being a taste that is sharp, acrid, and unpleasant. 2. Causing a sharply unpleasant, painful, or stinging sensation; harsh: that most vendors failed to meet their emergency needs: Vendor staffs were overwhelmed o·ver·whelm tr.v. o·ver·whelmed, o·ver·whelm·ing, o·ver·whelms 1. To surge over and submerge; engulf: waves overwhelming the rocky shoreline. 2. a. with questions and had too few experts available to respond with effective answers. The support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services of Drake and Creative Solutions' UltraTax tied for first place with 4.47 each. UltraTax, which scored only 2.18 last year, clearly undertook a major overhaul of its tech-support operation for this year. Also heartening heart·en tr.v. heart·ened, heart·en·ing, heart·ens To give strength, courage, or hope to; encourage. See Synonyms at encourage. Adj. 1. to CPA firms, which are making more use of networks to link their offices' computers, were improvements in the way their tax software operates on those networks. That average rating rose sharply to 4.30 this year from 4.02 a year ago. THREAT PAUSE pause (pawz) an interruption or rest. compensatory pause the pause in impulse generation after an extrasystole, either full if the sinus node is not reset or incomplete or While the immediate threat of continued vendor consolidation appears to have subsided, the market may not have reached a state of equilibrium equilibrium, state of balance. When a body or a system is in equilibrium, there is no net tendency to change. In mechanics, equilibrium has to do with the forces acting on a body. with a settled number of vendors. The next few years may see yet another kind of transformation in the tax software market. As reliable high-speed--and eventually ultra-high-speed--Internet connections become widespread, vendors probably will begin redesigning the way they make their products available to customers. Currently most customers either 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. the software or are mailed a set of compact disks, with last-minute last minute n. The period just before a significant or concluding moment such as a deadline, due date, or scheduled event: always waits until the last minute to do his holiday shopping. upgrades usually transmitted via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . But reliable, fast Internet connections offer the possibility of speedier and more economical and reliable tax preparation. Instead of loading the software on their own computers and working on their local networks, most customers likely will access a central tax software utility. A similar type of central utility service--this one for accounting--is slowly gaining ground, though obstacles remain. One big issue is whether the data, which are calculated and stored at the remote utility, are secure--not just from loss but also from hackers and industrial spies spies n. Plural of spy. v. Third person singular present tense of spy. . The recent thefts of bank and credit card data undermine undermine, v to separate surgically the skin or mucosa from its underlying stroma so that it can be stretched or moved to cover a defect or wound. CPAs' confidence in such a system. In time, however, 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 likely that security techniques will eliminate such dangers. However, setting up a utility for tax preparation requires both sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. capital and new technical skills--an open invitation for new
entries and partnerships in the existing software market. The bottom
line: The next few years may bring significant changes in the tax
software field, with smaller firms either partnering with high-tech high-tech also hi-techadj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. organizations or being bought out by one of the better-capitalized tax software vendors. WHY CPAs SWITCHED Despite the lessening of the vendor consolidation threat, CPA firms continue to meander meander Extreme U-bend in a stream, usually occurring in a series, that is caused by flow characteristics of the water. Meanders form in stream-deposited sediments and may stack up upstream of an obstruction, resulting in a gooseneck or extremely bowed meander. from one software product to another. Last year 11% said they were moving to another package because of dissatisfaction with their current product; this year nearly 16% reported such unhappiness and planned to order different software for 2006 (see exhibit 3, page 50). Some 3.8% of users cited price as the major reason to switch, while 2.2% cited poor customer support. Meanwhile, the percentage of e-filings continues to rise. Accountants who responded to the survey e-filed an average 42.8% of their federal returns, up from 32.2% last year. State e-filing Filing income tax and other governmental forms online. rose to 31.3%, up from 24.5% (see exhibit 4, page 52). In addition, 26.4% of respondents charged clients for e-filing services, and next year that percentage will rise to 33.8%. Exhibit 4 also shows the average percentage breakdown breakdown /break·down/ (brak´doun) 1. the act or process of ceasing to function. 2. an often sudden collapse in health. 3. loss of self-control. between tax preparations for businesses/non-profits (64.9%) and for individuals (25.8%) for each brand of software. SPECIAL SERVICES A small percentage (5.7%) of survey respondents offered tax-refund advances as part of their service, about the same as last year (exhibit 5, page 53). Exhibit 5 also provides a glimpse into which software products those firms that offer such advances use most frequently: Drake (21.2%), Tax-Slayer Pro (20.0%), TaxWise (10.5%) and Taxware Tax Preparation (9.0%). SOFTWARE PROFILES Only four products received a sufficient number of respondents' answers for us to provide profile details on their tax-service customers. A CPA firm may find such information useful in determining whether a product is well-suited to its needs--in terms of the size of most of its customers, its ownership (sole practitioner practitioner /prac·ti·tion·er/ (prak-tish´un-er) one who has met the requirements of and is engaged in the practice of medicine, dentistry, or nursing. nurse practitioner see under nurse. , number of partners) and the type of clients it serves. Lacerte: 34% of its customers are sole practitioners with an average staff of 1.3 professionals. About half have two to four partners, 10% have five to nine and 0.5% have between 20 and 49. Fourteen percent of its customers have multiple offices. ProSeries: 44% of its customers are sole practitioners, with an average staff of 1.1 professionals. Nearly half have two to four partners and only 2% have more than 10. ProSystem fx. 14% are sole practitioners with an average staff of two professionals; 29% have multiple offices and 15% are regional firms. GoSystem: None of its customers is a sole practitioner; 64% have multiple offices. Most of its customers are regional, national and international firms. UltraTax: 29% of its customers are sole practitioners with an average staff of 1.9 professionals; 20% have multiple offices with an average of 2.7 offices. Use this guide to help you select the software product that most closely fits your needs. Be aware there is no such thing as a perfect product; what works for you may be a disaster for another tax preparer. Detailed product data and judgmental judg·men·tal adj. 1. Of, relating to, or dependent on judgment: a judgmental error. 2. Inclined to make judgments, especially moral or personal ones: ratings from your peers, while valuable, are not the only--and surely not the best--way to make a software choice. The information is most useful for weeding weed 1 n. 1. a. A plant considered undesirable, unattractive, or troublesome, especially one growing where it is not wanted, as in a garden. b. Rank growth of such plants. 2. out the products that are clearly unsuitable for you. There is only one effective way to make a final decision--and that is to download an evaluation copy of the software and test-drive test-drive tr.v. test-drove , test-driv·en , test-driv·ing, test-drives To drive (a motor vehicle) to evaluate performance and condition. it with live data. While time-consuming time-con·sum·ing adj. Taking up much time. time-consuming Adjective taking up a great deal of time Adj. 1. , it tells you exactly what you need to know to make a final decision. We wish you success in locating the product that best serves your needs. 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 zarowin@mindspring MindSpring was a major Internet service provider which merged with EarthLink on February 4, 2000, with the company retaining the EarthLink name. MindSpring was founded in February 1994 by Charles Brewer in Atlanta, Georgia. .com.
SOFTWARE
Exhibit 1: Tax Software Vendors
Tax program Vendor Postal address Telephone
ATX's 1040, ATX/Kleinrock P.O. Box 1040 877-728-9776
1040 Office, MAX Caribou, ME 04736
Drake Software Drake Software 235 East Palmer 800-890-9500
St. Franklin, NC
28734
GoSystem Tax RS RIA 2395 Midway Rd. 800-865-5257
Building 1
Carrollton, TX
75006
Lacerte Intuit Inc. 5601 Headquarters 800-765-7777
Dr. Plano, TX
75024
ProSeries Intuit Inc. 6220 Greenwich Dr. 800-934-1040
San Diego, CA
92122
ProSystem fx Tax CCH Tax 21250 Hawthorne 800-739-9998
and Accounting Blvd. Torrance,
CA 90503
Tax Software for Dunphy 6740 Huntley Rd. 614-431-0846
the Professional Systems Inc. Suite 103
Columbus, OH 43229
TaxACT 2nd Story 5925 Dry Creek Ln. 800-573-4287
Preparer's Edition Software Inc. NE Cedar Rapids,
IA 52402
TaxSlayer Pro TaxSlayer Pro 610 Ronald Reagan 888-420-1040
Dr. Evans, GA
30809
Taxware Tax Taxware 924 W 9th St. 800-877-1065
Preparation Systems Inc. Upland, CA 91786
TaxWise Universal Tax 6 Mathis Dr. NW 800-755-9473
Systems Inc. Rome, GA 30165
TaxWorks TaxWorks 350 North 400 West 800-230-2322
Kaysville, UT
84037
UltraTax CS Creative 7322 Newman Blvd. 800-968-8900
Solutions Dexter, MI 48130
Tax program E-mail Web site
ATX's 1040, sales@atxinc.com www.atxinc.com/index.aspx
1040 Office, MAX
Drake Software info@drakesoftware.com www.drakesoftware.com
GoSystem Tax RS gosystem.sales@thomson gosystem.thomson.com
.com
Lacerte None www.lacertesoftware.com
ProSeries None www.proseries.com
ProSystem fx Tax sales@prosystemfx.com tax.cchgroup.com
Tax Software for dunphysupport@ www.dunphy.com
the Professional sbcglobal.net
TaxACT CustomerService@taxact www.taxact.com
Preparer's Edition .com
TaxSlayer Pro sales@taxslayerpro.com www.taxslayerpro.com
Taxware Tax sales@TaxwareSystems www.taxwaresystems.com
Preparation .com
TaxWise sales@taxwise.com www.taxwise.com
TaxWorks Sales@taxworks.com www.taxworks.com
UltraTax CS CS.Sales@thomson.com www.creativesolutions.
Exhibit 2: Ratings
Satisfaction (1 = very dissatisfied, 5 =very satisfied)
Were you
satisfied
with the With
Number of installation the ease
responders process? of learning?
Tax program
ATX 130 4.73 4.28
Drake Software 66 4.40 4.35
GoSystem Tax RS 126 4.11 3.48
Lacerte 815 4.63 4.35
ProSeries 372 4.58 4.37
ProSystem fx Tax 987 4.13 3.71
Tax Software for 12 4.23 4.50
the Professional
TaxACT Preparer's 11 4.31 4.55
Edition
TaxSlayer Pro 10 4.30 3.91
Taxware Tax 12 4.30 4.39
Preparation
TaxWise 19 4.52 4.37
TaxWorks 32 4.46 3.13
UltraTax CS 564 4.54 4.05
Average 4.40 4.11
Total 3,156
Overall
Overall product
With the product rating
ease of use? rating last year
Tax program
ATX 4.32 4.40 3.59
Drake Software 4.24 4.44 *
GoSystem Tax RS 3.49 3.82 3.92
Lacerte 4.43 4.46 4.32
ProSeries 4.39 4.28 4.07
ProSystem fx Tax 3.71 4.09 4.35
Tax Software for 4.58 4.46 *
the Professional
TaxACT Preparer's 4.34 4.20 *
Edition
TaxSlayer Pro 3.82 3.63 *
Taxware Tax 4.40 4.44 *
Preparation
TaxWise 4.32 4.41 3.42
TaxWorks 3.03 3.95 4.21
UltraTax CS 4.34 4.41 4.35
Average 4.11 4.23 4.03
Total
Percentage
Support whose
Support rating software ran Network
rating last year on a network rating
Tax program
ATX 4.12 2.90 25.0% 4.55
Drake Software 4.47 * 56.0% 4.74
GoSystem Tax RS 3.96 2.48 71.0% 4.06
Lacerte 4.32 4.13 73.0% 4.55
ProSeries 3.90 4.00 43.0% 4.14
ProSystem fx Tax 4.37 2.09 84.0% 4.54
Tax Software for 4.40 * 50.0% 4.60
the Professional
TaxACT Preparer's 4.30 * 18.0% 3.50
Edition
TaxSlayer Pro 3.60 * 40.0% 2.50
Taxware Tax 4.42 * 58.0% 4.71
Preparation
TaxWise 4.26 3.33 47.0% 4.60
TaxWorks 4.32 2.34 78.0% 4.80
UltraTax CS 4.47 2.18 82.0% 4.66
Average 4.22 2.93 55.8% 4.30
Total
Network Percentage who said
rating the product contained
last year all the necessary forms
Tax program
ATX 3.42 96.0%
Drake Software * 85.0%
GoSystem Tax RS 4.21 81.0%
Lacerte 4.17 84.0%
ProSeries 3.59 63.0%
ProSystem fx Tax 4.38 87.0%
Tax Software for * 92.0%
the Professional
TaxACT Preparer's * 80.0%
Edition
TaxSlayer Pro * 50.0%
Taxware Tax * 75.0%
Preparation
TaxWise 3.88 84.0%
TaxWorks 4.18 78.0%
UltraTax CS 4.32 93.0%
Average 4.02 80.6%
Total
* Not rated last year.
Exhibit 3: Switching Products
Percentage Percentage
who planned who would Satisfaction with
to use the recommend the conversion package
same product product to a rating
next year challenge (1=poor, 5=good)
TAX program
ATX 84.6% 83.1% 4.50
Drake Software 84.8% 81.9% 3.58
GoSystem Tax RS 77.8% 73.9% 2.30
Lacerte 91.0% 89.2% 3.33
ProSeries 80.4% 78.3% 3.32
ProSystem fx Tax 93.2% 92.7% 3.69
Tax Software for 91.7% 91.7% N/A
the Professional
TaxACT Preparer's 63.6% 60.7% 1.00
Edition
TaxSlayer Pro 80.0% 77.0% N/A
Taxware Tax 83.3% 82.8% N/A
Preparation
TaxWise 78.9% 78.1% 4.00
TaxWorks 93.8% 93.6% N/A
UltraTax CS 93.8% 91.2% 3.79
Average 84.4% 82.6% 2.27
Reasons for switching products
Lacked
Hard to Hard to Customer necessary
Price use install support function
Tax program
ATX 1.5% 0.0% 0.0% 0.8% 0.8%
Drake Software 13.6% 3.0% 1.5% 6.1% 3.0%
GoSystem Tax RS 0.0% 0.8% 0.8% 0.8% 5.6%
Lacerte 0.0% 0.0% 0.0% 0.0% 0.1%
ProSeries 1.1% 0.5% 0.0% 0.3% 1.3%
ProSystern fx Tax 0.5% 0.2% 0.0% 0.7% 2.2%
Tax Software for 0.0% 0.1% 0.0% 0.1% 0.0%
the Professional
TaxACT Preparer's 9.1% 0.0% 0.0% 18.2% 0.0%
Edition
TaxSlayer Pro 0.0% 0.0% 0.0% 0.1% 0.0%
Taxware Tax 8.3% 0.0% 0.0% 0.1% 0.0%
Preparation
TaxWise 5.3% 0.0% 0.0% 0.2% 0.0%
TaxWorks 6.3% 0.0% 0.0% 0.0% 3.1%
UltraTax CS 3.5% 0.4% 0.0% 1.2% 2.3%
Average 3.8% 0.4% 0.2% 2.2% 1.4%
Reasons for switching products
Was not
accurate
Tax program
ATX 0.0%
Drake Software 0.0%
GoSystem Tax RS 0.8%
Lacerte 0.0%
ProSeries 0.8%
ProSystern fx Tax 0.2%
Tax Software for 0.0%
the Professional
TaxACT Preparer's 0.0%
Edition
TaxSlayer Pro 0.0%
Taxware Tax 0.0%
Preparation
TaxWise 0.0%
TaxWorks 0.0%
UltraTax CS 0.4%
Average 0.2%
Exhibit 4: Filing Statistics
Number of
federal
returns
prepared Percentage
for the Percentage prepared for
2004 tax prepared for businessess
year individuals and nonprofits
Tax program
ATX 252 67.0% 27.7%
Drake Software 644 72.9% 22.7%
GoSystem Tax RS 1,119 47.7% 45.3%
Lacerte 674 69.1% 67.3%
ProSeries 370 69.9% 26.2%
ProSystem fxTax 1,062 80.4% 36.2%
Tax Software for 8,014 67.1% 53.3%
the Professional
TaxACT Preparer's 65 61.0% 16.2%
Edition
TaxSlayer Pro 803 66.9% 33.1%
Taxware Tax 463 72.3% 25.8%
Preparation
TaxWise 311 80.3% 19.3%
TaxWorks 587 20.0% 27.8%
UltraTax CS 743 66.0% 30.4%
Average 1,162 64.9% 25.8%
Percentage Percentage
of federal of federal Number of
returns e-filled state returns
e-filled last year prepared
Tax program
ATX 40.4% 30.7% 224
Drake Software 66.6% 53.7% 479
GoSystem Tax RS 15.9% 10.4% 9,270
Lacerte 67.4% 31.3% 543
ProSeries 38.2% 26.9% 315
ProSystem fxTax 37.9% 25.5% 918
Tax Software for 51.6% 45.0% 6,169
the Professional
TaxACT Preparer's 14.6% 13.5% 29
Edition
TaxSlayer Pro 61.4% 44.1% 258
Taxware Tax 2.1% 2.4% 261
Preparation
TaxWise 58.3% 60.9% 250
TaxWorks 55.8% 41.5% 419
UltraTax CS 45.7% 33.1% 601
Average 42.8% 32.2% 1,498
Percentage Percentage Percentage
of state of state who charged
returns returns e-filled extra for
e-filled last year e-filling
Tax program
ATX 37.4% 28.3% 10.8%
Drake Software 63.0% 50.9% 7.6%
GoSystem Tax RS 14.5% 8.9% 20.6%
Lacerte 39.7% 28.2% 25.0%
ProSeries 33.4% 23.6% 33.1%
ProSystem fxTax 32.3% 21.1% 23.6%
Tax Software for 47.5% 39.2% 58.3%
the Professional
TaxACT Preparer's 12.4% 8.3% 18.2%
Edition
TaxSlayer Pro 40.3% 31.7% 30.0%
Taxware Tax 2.8% 37.2% 33.3%
Preparation
TaxWise 60.2% 54.9% 26.3%
TaxWorks 51.5% 37.0% 31.3%
UltraTax CS 40.7% 29.1% 25.2%
Average 31.3% 24.5% 26.4%
Percentage who planned
to charge extra
for e-filling next year
Tax program
ATX 16.9%
Drake Software 6.1%
GoSystem Tax RS 29.4%
Lacerte 33.4%
ProSeries 38.2%
ProSystem fxTax 30.2%
Tax Software for 66.7%
the Professional
TaxACT Preparer's 36.4%
Edition
TaxSlayer Pro 50.0%
Taxware Tax 41.7%
Preparation
TaxWise 26.3%
TaxWorks 34.4%
UltraTax CS 30.5%
Average 33.8%
Exhibit 5: Special Client Services
Percentage Percentage of Percentage
offering fillings that that planned to
tax-refund included such offer that service
advances advances next year
Tax program
ATX 5.4% 7.1% 4.6%
Drake Software 21.2% 17.4% 19.7%
GoSystem Tax RS 0.0% 0.0% 0.0%
Lacerte 0.6% 6.7% 0.5%
ProSeries 4.3% 7.5% 4.0%
ProSystem fx Tax 1.5% 13.6% 0.4%
Tax Software for 0.0% 0.0% 0.0%
the Professional
TaxACT Preparer's 0.0% 0.0% 0.0%
Edition
TaxSlayer Pro 20.0% 4.0% 20.0%
Taxware Tax 9.0% 14.0% 10.0%
Preparation
TaxWise 10.5% 11.8% 10.5%
TaxWorks 0.0% 0.0% 0.0%
UltraTax CS 1.8% 2.4% 1.4%
Average 5.7% 6.5% 5.5%
Percentage Percentage
that offered of clients
online organizers that
this year used them
Tax program
ATX 13.1% 7.1%
Drake Software 9.1% 10.8%
GoSystem Tax RS 20.6% 2.8%
Lacerte 22.6% 5.3%
ProSeries 9.1% 7.8%
ProSystem fx Tax 25.5% 5.2%
Tax Software for 0.0% 0.0%
the Professional
TaxACT Preparer's 18.2% 6.0%
Edition
TaxSlayer Pro 0.0% 0.0%
Taxware Tax 5.0% 12.0%
Preparation
TaxWise 15.8% 51.0%
TaxWorks 6.3% 7.5%
UltraTax CS 26.8% 3.9%
Average 13.2% 9.2%
Exhibit 6: Product Details
ATX's 1040, Drake GoSystem
Product prices 1040 Office, MAX Software Tax RS
1040 ATX's 1040: $3/b $995-$1,395 Starts at
ATX's 1040 $2,500
Office: $575
MAX: $985
1040 renewal Early renewal $995-$1,395 Starts at
discount ended $2,500
May 31
State package ATX's 1040: 3 Free Included
states free
ATX's 1040
Office: Free
MAX: Free
State renewal Same Same Same
Additional fee for No No No
laser package
Per-return pricing Separate product, $10/return No
PRS, allows 10
e-files for $150
Additional cost for No No No
electronic filing
software
Additional cost per No No $5/1040;
electronically filed $2/state
return
Conversion package Yes Yes Yes
available
Cost of conversion Free Free $10/return
package
Filing
Do you provide direct Both Both DF
filing (DF), service
bureau (SB) or both?
Can you Yes Yes Yes
electronically file
state returns?
Do you allow for Yes Yes Yes
electronic signature?
Market
Number of individual 50,000+ No charge 75,000
users of 2004 package for
multiuser
capability
Number of firms N/A 18,530 N/A
using product
Percentage of About 90% 96% 99.5%
renewals from 2003
package
Number of years 13 28 40
in business
Support
Toll-free number Yes No Yes
for support
Days and hours M-F 8-midnight; M-F 8-10; M-F 9-8;
(Eastern time) Sat. 9-5 Sat. 8-6 Sat. 10-6;
support available Sun. 11-5
during tax season
Days/hours support M-F 8-10; M-F 8-9; M-F 9-8
available during Sat. 9-5 Sat. 9-5
off-season
Number of tax season 200+ 200+ 24
support staff (1040 only)
Online support Yes Yes Yes
Technology
What operating Windows 98 Windows 98, Windows XP
system(s) does and above ME, 2000,
product run on? XP, NT
(4.0 or
higher)
Recommended Windows 98 Windows XP Windows XP
operating system and above
Program size in Mb 350 Mb 87 Mb 226 Mb with
without 1040 only
states; 233
Mb with
states
Minimum RAM 128 Mb 64 Mb for 256 Mb
recommended Windows 95,
98, 2000 or
NT; 128 Mb
for ME or
XP
Display and data
IRS data displayed Yes Yes Yes
on-screen
Vendor data Yes Yes Yes
displayed on-screen
Batch processing Yes Yes Yes
Heads-down data entry No Yes Yes
Program management
tools
Reports Yes Yes Yes
Organizers Yes Yes Yes
Labels Yes Yes Yes
Client letters Yes Yes Yes
Scheduling program No Yes No
Other packages
available
Online tax- No Yes Yes
preparation option
State packages Yes Yes Yes
available
Multistate package Yes Yes Yes
available
Does your product
include the
following:
1120 Yes Yes Yes
Included in price ATX's 1040: No Yes Yes
of 1040 ATX's 1040
Office: No
MAX: Yes
1120S Yes Yes Yes
Included in price ATX's 1040: No Yes Yes
of 1040 ATX's 1040
Office: No
MAX: Yes
1065 Yes Yes Yes
Included in price ATX's 1040: No Yes Yes
of 1040 ATX's 1040
Office: No
MAX: Yes
1041 Yes Yes Yes
Included in price ATX's 1040: No Yes Yes
of 1040 ATX's 1040
Office: No
MAX: Yes
990 Yes Yes Yes
Included in price ATX's 1040: No Yes Yes
of 1040 ATX's 1040
Office: No
MAX: Yes
706 Yes Yes Yes
Included in price No Yes Yes
of 1040
709 Yes Yes Yes
Included in price ATX's 1040: No Yes Yes
of 1040 ATX's 1040
Office: No
MAX: Yes
State support
All states All states All states
supported supported supported
ProSystem fx
Product prices Lacerte ProSeries Tax
1040 $2,140 Starts at $2,975
$949
1040 renewal $1,819 A three-year Call for
price lock details
for early
renewal ended
June 30
State package $235-$340 $249-$349 $315-$755
State renewal $199-$289 Same Call for
details
Additional fee for No No No
laser package
Per-return pricing 1040 and one $15/1040; $27
state: $22; $11/state
business,
trust, estate
and one
state: $40;
gift tax,
employee
benefits
and one
state: $30
Additional cost for No No $100
electronic filing
software
Additional cost per $2/1040; $3/1040; $3/return;
electronically filed $2/state; $2/state; $1,000/
return $950/ $250/ unlimited
unlimited unlimited
Conversion package Yes Yes Yes
available
Cost of conversion Free Free Free
package
Filing
Do you provide direct SB DF Both
filing (DF), service
bureau (SB) or both?
Can you Yes Yes Yes
electronically file
state returns?
Do you allow for Yes Yes Yes
electronic signature?
Market
Number of individual No charge for No charge for N/A
users of 2004 package multiuser multiuser
capability capability
Number of firms 40,293 55,593 20,000+
using product
Percentage of 93.62% 85.95% 96%
renewals from 2003
package
Number of years 27 22 40+
in business
Support
Toll-free number Yes Yes Yes
for support
Days and hours M-F 6-6; M-F 7:30-9; M-F 8:30-9:30;
(Eastern time) Sat. 7-2; Sat.10-5; Sat. 9-8; Sun.
support available Sun. 9-2; 24 Sun. 12-5; in April:
during tax season hours last 24 hours last 10-6; 24 hours
week of tax week of tax last week of
season season tax season
Days/hours support M-F 6-5 M-F 9-8 M-F 9-8;
available during selected
off-season Sat. 9-6
Number of tax season 500 500+ 450+
support staff
Online support Yes Yes Yes
Technology
What operating Windows 98, Windows 98, Windows 98,
system(s) does 2000, ME, ME, 2000, XP 2000, ME, NT
product run on? NT, XP Pro or Home, Workstation
NT ver. 4.0, XP
Pro, MDAC
ver. 2.6
Recommended Same Windows 2000, Windows XP
operating system XP 2000
Professional
or Home
Program size in Mb 38 Mb for 650 Mb 100 Mb
1040 and
operation
files; 12 Mb
for 1040;
and 26 Mb
for global
program
Minimum RAM 256 Mb for 128 Mb 256 Mb
recommended all but XP,
which uses
512 Mb
Display and data
IRS data displayed Yes Yes Yes
on-screen
Vendor data Yes Yes Yes
displayed on-screen
Batch processing Yes Yes Yes
Heads-down data entry Yes Yes Yes
Program management
tools
Reports Yes Yes Yes
Organizers Yes Yes Yes
Labels Yes Yes Yes
Client letters Yes Yes Yes
Scheduling program Yes No Yes
Other packages
available
Online tax- No No Yes
preparation option
State packages Yes Yes Yes
available
Multistate package Yes Yes Yes
available
Does your product
include the
following:
1120 Yes Yes Yes
Included in price No No No
of 1040
1120S Yes Yes Yes
Included in price No No No
of 1040
1065 Yes Yes Yes
Included in price No No No
of 1040
1041 Yes Yes Yes
Included in price No No No
of 1040
990 Yes Yes Yes
Included in price No No No
of 1040
706 Yes Yes Yes
Included in price No No No
of 1040
709 Yes Yes Yes
Included in price No No No
of 1040
State support
All states All states All states
supported supported supported
Tax Software TaxACT
for the Preparer's TaxSlayer
Product prices Professional Edition Pro
1040 $849 $99 $995
1040 renewal $699 $79 $750
State package $319-$379/ $12.95/state; Free
first two $51.80/all
states; after
that, $50/
state
State renewal Same Same Same
Additional fee for No Laser package No
laser package unavailable
Per-return pricing No No No
Additional cost for $99-$499 No No
electronic filing
software
Additional cost per $1-$5/return; Starting at No
electronically filed free for $7.95/1040;
return direct filers $3.50/state.
Free after
100th return.
$350/
unlimited
1040; $150/
unlimited
state.
Conversion package No No Yes
available
Cost of conversion Call for
package details
Filing
Do you provide direct Yes SB Both
filing (DF), service
bureau (SB) or both?
Can you Yes Yes Yes
electronically file
state returns?
Do you allow for Yes Yes Yes
electronic signature?
Market
Number of individual N/A N/A 7,200
users of 2004 package
Number of firms N/A N/A 3,500
using product
Percentage of N/A N/A 98%
renewals from 2003
package
Number of years 21 8 41
in business
Support
Toll-free number No No No
for support
Days and hours M-F 8-6; M-F 9-10; M-F 8-11;
(Eastern time) Sat. 9-1 Sat. 9-6; Sat.-Sun. 8-9
support available Sun. 1-6
during tax season
Days/hours support M-F 9-5 M-F 9-6 M-F 8:30-4:30
available during
off-season
Number of tax season Varies 75 35
support staff
Online support Yes Yes Yes
Technology
What operating Windows 3.1, Windows 95, Windows 98SE,
system(s) does 95, 98, ME, 98, ME, ME, 2000,
product run on? 2000, XP, 2000, XP NT, XP
2003 Server,
DOS 3.1 or
higher
Recommended Windows XP Any of the Windows XP Pro
operating system above
Program size in Mb 5 Mb 30 Mb 150 Mb
Minimum RAM 640 K 16 Mb 128 Mb
recommended
Display and data
IRS data displayed Yes Yes Yes
on-screen
Vendor data Yes Yes Yes
displayed on-screen
Batch processing No No Yes
Heads-down data entry No No Yes
Program management
tools
Reports Yes Yes Yes
Organizers Yes Yes Yes
Labels Yes Yes Yes
Client letters Yes Yes Yes
Scheduling program No No No
Other packages
available
Online tax- No No Yes
preparation option
State packages No Yes Yes
available
Multistate package Yes Yes Yes
available
Does your product
include the
following:
1120 Yes No Yes
Included in price Yes No
of 1040
1120S Yes Yes Yes
Included in price No No Yes
of 1040
1065 Yes Yes Yes
Included in price No No Yes
of 1040
1041 No No Yes
Included in price Yes
of 1040
990 No No Yes
Included in price Yes
of 1040
706 No No No
Included in price
of 1040
709 Yes No No
Included in price No
of 1040
State support States not States not All states
supported: supported: supported
Ala., Ariz., Ark., Fla.,
Calif., Nev., S.D.,
Colo., Del., Tenn., Texas,
District of Wash., Wyo.
Columbia,
Hawaii,
Idaho, Maine,
Md., Mont.,
N.H., N.D.,
R.I., Utah,
Vt., Wis.
Taxware
Tax
Preparation Taxwise TaxWorks
Product prices
1040 $1,250 A la carte: $695 $1,095
ProFiling: $1,112
Power: $2,295
1040 renewal $1,250 A la carte: $556 $995
ProFiling: $896
Power: $1,836
State package Free A la carte: $345
$295/1-5 states;
$695/all states.
ProFiling: Free
Power: Free
State renewal Same A la carte: $236/ $200
1-5 states;
$556/all states.
ProFiling: Free
Power: Free
Additional fee for No No No
laser package
Per-return pricing No $100 fee $15/return
($300 nonrefundable ($400
deposit against deposit)
$15/return)
Additional cost for No No No
electronic filing
software
Additional cost per No A la carte: Varies on
electronically filed $4/1040, $1/state; volume
return ProFiling: $1/1040,
$.50/state
Power: Free
Conversion package Some Yes Yes
available
Cost of conversion Free Free Free
package
Filing
Do you provide direct Both Both SB
filing (DF), service
bureau (SB) or both?
Can you Yes Yes Yes
electronically file
state returns?
Do you allow for Yes Yes Yes
electronic signature?
Market
Number of individual Variable 75000 N/A
users of 2004 package
Number of firms Variable 25000 About 4,000
using product
Percentage of 96% 96% 93%
renewals from 2003
package
Number of years 25 20 33
in business
Support
Toll-free number Yes Yes Yes
for support
Days and hours M-F 9-9; M-F 8:30-midnight; M-F 7-8;
(Eastern time) Sat. 11-3 Sat. 8:30-5; Sat. 7-4
support available Sun. 1-5
during tax season
Days/hours support M-F 11-8 M-F 8:30-5:30 M-F 8-5
available during
off-season
Number of tax season Varies 300 50
support staff
Online support Yes Yes Yes
Technology
What operating Windows 98, Windows 2000 Windows
system(s) does 2000, XP or later 2000, XP
product run on?
Recommended Windows XP, Windows 2000 Windows XP
operating system 2000 or later
Program size in Mb 65 Mb 8.13 Mb 80 Mb
Minimum RAM 256 Mb 128 Mb 128 Mb
recommended minimum,
256 Mb
recommended
Display and data
IRS data displayed Yes Yes Yes
on-screen
Vendor data Yes Yes Both vendor
displayed on-screen and IRS
Batch processing Yes Yes Yes
Heads-down data entry Yes Yes Yes
Program management
tools
Reports Yes Yes Yes
Organizers Yes Yes Yes
Labels Yes Yes Yes
Client letters Yes Yes Yes
Scheduling program No Yes Yes
Other packages
available
Online tax- No No No
preparation option
State packages Yes Yes Yes
available
Multistate package Yes Yes Yes
available
Does your product
include the
following:
1120 Yes Yes Yes
Included in price No Yes, with No
of 1040 Executive and Power
1120S Yes Yes Yes
Included in price No Yes, with No
of 1040 Executive and Power
1065 Yes Yes Yes
Included in price No Yes, with No
of 1040 Executive and Power
1041 Yes Yes Yes
Included in price No Yes, with No
of 1040 Executive and Power
990 Yes Yes Yes
Included in price No Yes, with No
of 1040 Executive and Power
706 Yes Yes Yes
Included in price No Yes, with No
of 1040 Executive and Power
709 Yes Yes Yes
Included in price No Yes, with No
of 1040 Executive and Power
State support State not All states In Ariz.
supported: supported only the
Vt. business
return not
included
UltraTax
CS
Product prices
1040 $2,000
1040 renewal 1700
State package $200-$300
State renewal Same
Additional fee for No
laser package
Per-return pricing $16/1040;
$9/state
Additional cost for No
electronic filing
software
Additional cost per $2/1040;
electronically filed $1/state;
return $1,000/unlimited
Conversion package Yes
available
Cost of conversion Free
package
Filing
Do you provide direct Both
filing (DF), service
bureau (SB) or both?
Can you Yes
electronically file
state returns?
Do you allow for Yes
electronic signature?
Market
Number of individual 81,000
users of 2004 package
Number of firms 19,000
using product
Percentage of 95%+
renewals from 2003
package
Number of years 26
in business
Support
Toll-free number Yes
for support
Days and hours M-F 9-10;
(Eastern time) Sat. 9-6;
support available selected Sun.
during tax season
Days/hours support M-F 9-8
available during
off-season
Number of tax season 100+
support staff
Online support Yes
Technology
What operating Windows 98SE,
system(s) does 2000 Professional
product run on? SP2, XP Pro,
2003 Server
Recommended Windows XP,
operating system 2003 Server
Program size in Mb 30 Mb
Minimum RAM 128 Mb
recommended minimum;
256 Mb
recommended
Display and data
IRS data displayed No; link to IRS
on-screen sites provided
Vendor data Yes
displayed on-screen
Batch processing Yes
Heads-down data entry Yes
Program management
tools
Reports Yes
Organizers Yes
Labels Yes
Client letters Yes
Scheduling program Yes
Other packages
available
Online tax- Yes
preparation option
State packages Yes
available
Multistate package No
available
Does your product
include the
following:
1120 Yes
Included in price No
of 1040
1120S Yes
Included in price No, included in
of 1040 price of 1120
1065 Yes
Included in price No
of 1040
1041 Yes
Included in price No
of 1040
990 Yes
Included in price No
of 1040
706 Yes
Included in price No
of 1040
709 Yes
Included in price No
of 1040
State support All states
supported
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