Users size up tax software: product ratings gain, but vendor support slips.Although AICPA AICPA See American Institute of Certified Public Accountants (AICPA). tax practitioners rated this year's crop of tax-preparation software superior to the products they used last year, they gave lower grades to vendors' technical support. But for many tax practitioners, the bigger story was that the number of tax-software products continued to decline, forcing newly orphaned or·phan n. 1. a. A child whose parents are dead. b. A child who has been deprived of parental care and has not been adopted. 2. A young animal without a mother. 3. customers to go through the agony agony, n severe pain or extreme suffering. agony 1. death struggle. 2. extreme suffering. of selecting a new package and converting their client tax files to make them compatible. Such were the highlights of the Journal of Accountancy's spring 2004 survey of 2,010 AICPA tax-department members. The average satisfaction rating for the nine professional products included in the survey was 4.09--out of a possible 5.00--up from last year's average of 3.61, with Intuit's Lacerte posting the highest overall ratings with a score of 4.43 (see exhibit 2, page 72). Three products tied for third place with a score of 4.35: Drake drake 1. male duck. 2. loliumtemulentum. Software, Thomson Creative Solutions' UltraTax and CCH CCH Colegio de Ciencias y Humanidades (Spanish) CCH Certified Clinical Hypnotherapist CCH Cook County Hospital CCH Certified in Classical Homeopathy CCH Country Club Hills (Fairfax City, VA, USA) Tax and Accounting's ProSystem fx Tax. The average cumulative rating for technical support slipped sharply to 2.44 from 3.50 last year, although 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. reported an improvement in the way their software ran on their networks--4.09, up from 3.50. For a list of the vendors included in the survey, see exhibit 1, below. SHRINKING MARKET The survey also revealed that not only is the field of vendors dwindling dwin·dle v. dwin·dled, dwin·dling, dwin·dles v.intr. To become gradually less until little remains. v.tr. To cause to dwindle. See Synonyms at decrease. , but the existing market is becoming more concentrated, with four products appearing to lead the field with the most customers: Intuit's Lacerte and ProSeries, CCH's ProSystem fx Tax and Thomson Creative Solutions' UltraTax. Evidence of the growing concentration can he deduced from the data in exhibit 2. Although more than twice as many tax practitioners responded this year than last (2,010 vs. 993), making the 2004 data more statistically reliable, only nine products received the 10 or more responses needed to qualify for inclusion in the survey. That's down from 12 last year. In addition, tax year 2004 will see at least three fewer tax software products on the market. Thomson Creative Solutions, which owns UltraTax and RIA's GoSystem Tax RS, acquired the customer lists of Tax Relief and Exact Tax, both of which withdrew from the market. Also, Best Software sold its 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. Software Visual Tax customer list to CCH, which will he attempting to migrate those customers to its ProSystem fx Tax. Caveat [Latin, Let him beware.] A warning; admonition. A formal notice or warning given by an interested party to a court, judge, or ministerial officer in opposition to certain acts within his or her power and jurisdiction. : The lopsided lop·sid·ed adj. 1. Heavier, larger, or higher on one side than on the other. 2. Sagging or leaning to one side. 3. response in favor of upon the side of; favorable to; for the advantage of. See also: favor just four products makes the individual scores of the remaining five products statistically unreliable. GoSystem Tax RS received just 50 responses, Max Plus 44, TaxWorks 29, Drake 17 and TaxWise 12. However, we believe the cumulative average of all nine product scores in exhibit 2 is statistically reliable. Currently, there are only 16 tax software products on the market that provide all the necessary federal forms and can calculate taxes for every state with an income tax. That's down about 20% in the past decade. Aside from the packages reviewed in this survey, other products on the market include GreatTax, Orrtax, Dunphy
Petz were the world's first virtual pets, first released before Tamagotchi. Crosslink, TaxSimple and 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. . When a software publisher acquires a competitor, it usually just wants the customer list; the acquired product usually becomes defunct DEFUNCT. A term used for one that is deceased or dead. In some acts of assembly in Pennsylvania, such deceased person is called a decedent. (q.v.) and the buyer seeks to convert the orphaned customers to its brand. But when Intuit in·tu·it tr.v. in·tu·it·ed, in·tu·it·ing, in·tu·its Usage Problem To know intuitively. [Back-formation from intuition. acquired Lacerte a few years ago, it took a different tack: Because both the Lacerte brand name and product were so popular, Intuit decided to continue the package under a joint name. TROUBLE FOR PRACTITIONERS The current turnover rate--the percentage of customers voluntarily moving to a new product or being forced to switch because their current product was being withdrawn--ran at about 13% last year (see exhibit 3, page 72). Most tax practitioners are not happy about market consolidation--and for good reason. Switching tax packages is no small matter. First of all the CPA firm has to install the new product on its network, praying pray v. prayed, pray·ing, prays v.intr. 1. To utter or address a prayer or prayers to God, a god, or another object of worship. 2. To make a fervent request or entreaty. v. its computer system is sufficiently robust to handle the change; if it isn't is·n't Contraction of is not. isn't is not isn't be , the customer must go through the often difficult and expensive process of upgrading the hardware. Then, since each tax package operates differently, the firm's tax professionals must learn to run the new software and become familiar with all its unique technical nuances. And finally, the firm has to put all its client tax data through the new vendor's conversion software to make the returns compatible with the new package--all the while worrying whether the conversion process will leave it with hours of work tracing for evidence of errors. Confirming the difficulty and frustration Frustration See also Exasperation, Futility. Akaki poor government clerk saves to buy a new overcoat, only to have it stolen. [Russ. Lit.: Gogol The Overcoat in Magill II, 790] Angstrom, Harry “Rabbit” with conversion software, the survey showed it is nearly universally disliked dis·like tr.v. dis·liked, dis·lik·ing, dis·likes To regard with distaste or aversion. n. An attitude or a feeling of distaste or aversion. . With but one exception--Intuit's Lacerte--tax practitioners generally gave low grades (2.33) to these converters. Lacerte received a 4.17 (exhibit 3). As evidence of the intense competition to acquire orphaned customers, of the nine products assessed here, all but one--GoSystem Tax RS--provided free conversion software (exhibit 3). GoSystem, which charges $2 a return for conversions, is owned by RIA (Rich Internet Application) A Web-based application that approaches the speed and elegance of a local application. An RIA may refer to a browser-based application that uses AJAX or another enhanced coding technique. , which in turn is owned by Thomson, the publisher of UltraTax. TECHNICAL SUPPORT Mention the words technical support to a tax 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. and often you'll you'll Contraction of you will. you'll you will or you shall you'll will get an earful ear·ful n. 1. An abundant or excessive amount of something heard, such as talk or music. 2. Gossip, especially of an intimate or scandalous nature. 3. A scolding or reprimand. of complaints about bad service and long hours of holding on the telephone for a tech-support representative. After all, the last thing CPAs want to hear when they call with questions during the critical days before April 15 is a busy signal, a recording or an ineffective response to a question. The average cumulative rating for technical support fell to just 2.44 from last year's 3.50 (exhibit 2). E-FILING Filing income tax and other governmental forms online. GAINS Preparers electronically filed a larger number of both federal and state tax returns: 39.4% of federal returns were e-filed this year, up from 24.5% last year. The state statistics were similar: 35.6%, up from 19.4% (see exhibit 4, page 74). Six of the nine vendors charged tax preparers extra for e-filing, with fees as high as $1,350 for an unlimited number of e-filings (see exhibit 6, page 76). The three that didn't did·n't Contraction of did not. didn't did not didn't do charge were Drake Software, GoSystem Tax RS and Max Plus. Only three vendors Thomson for GoSystem Tax RS, Intuit for ProSeries and CCH for ProSystem fx Tax--charged tax practitioners a the for the software used in e-filing. GoSystem charged for e-filing but didn't charge for each return filed. An average of 31.5% of the practitioners passed this fee along to clients, and 37% said they planned to add such a charge next year (exhibit 6). PRODUCT LOYALTY The software package with the most loyal customers appears to be ProSystem fx Tax (exhibit 3); 97.8% of its users said they planned to buy the product again next year. Hot on the leader's heels was UltraTax, with 97.2% reporting they planned to remain customers. For all nine products, 89% of respondents said they planned to stay with their vendor--showing an apparent 11% voluntary turnover rate. Once again we suggest you not read too much into the individual ratings for those products with fewer than 100 responses. We had hoped the survey data would reveal which products were gaining customers and which were losing them. Unfortunately, since only about 11% of respondents voluntarily switched alliances, it was evident the resulting switching population (11% of 2,010 and divided among nine vendors) was too small to provide reliable individual results. However, 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. on product switching did stand out: When asked for the major reason they switched products, 32% of the respondents cited price. SPECIAL SERVICES We were surprised to discover that online organizers--those software add-ons that make compiling com·pile tr.v. com·piled, com·pil·ing, com·piles 1. To gather into a single book. 2. To put together or compose from materials gathered from several sources: raw tax data relatively painless pain·less adj. Free from complication or pain: a painless operation. pain  less·ly adv. for taxpayers and a labor saver for the tax preparer--were not very
popular with either tax practitioners or their clients. Although all of
the nine products in the survey contained such 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 ZA
Tax-refund advances remained a minor marketing feature. Only 5.1% of the tax practitioners said they offered refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies advances, and growth in the service will be about 10% next year: 5.6% said they planned to offer it. PROFILE OF RESPONDENTS Of the 2,010 AICPA tax-department members who filled out the survey, 12% were sole practitioners and 80.3% were from local, one-location firms (see exhibit 7, below). We had hoped to correlate the type and size of firm with the software used, but again we were stymied by the fact that some packages received very few responses. However, four packages--Lacerte, ProSeries, ProSystem fx Tax and UltraTax--received enough responses to provide at least a conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. analysis. It appears the leading software used by sole practitioners was ProSeries and the leading local-firm package was ProSystem fx Tax. There were too few responses from regional, national or Big Four firms to provide reliable conclusions. Because of the continued intense competition in the tax-software market--and if history is any guide--further consolidation is likely to continue. And as the number of products shrinks, 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 evident the market will see still more concentration.
Exhibit 1: Tax Software Vendors
RIA
Vendor Drake Software (owned by Thomson)
Tax program Drake Software GoSystem Tax RS
Address 235 E. Palmer St. 2395 Midway Rd.
Franklin, NC 28734 Building 1
Carrollton, TX 75006
Telephone 800-890-9500 800-865-5257
E-mail address info@drakesoftware.com gosystem.sales@thomson.com
Web site www.drakesoftware.com http://gosystem.thomson.com
Vendor Intuit Inc. ATX Inc.
Tax program Lacerte Max Plus
Address 5601 Headquarters Dr. P.O. Box 1040
Plano, TX 75024 Caribou, ME 04736
Telephone 800-765-7777 877-728-9776
E-mail address None sales@atxinc.com
Web site www.lacertesoftware.com www.atxinc.com
CCH Tax and Accounting,
Vendor Intuit Inc. a Wolters Kluwer company
Tax program ProSeries ProSystem fx Tax
Address 2632 Marine Way 21250 Hawthorne Blvd.
Mountain View, CA 94043 Torrance, CA 90503
Telephone 800-934-1040 800-739-9998
E-mail address None sales@prosystemfx.com
Web site www.proseries.com www.tax.cchgroup.com/
pfx/products/tax
Universal Tax TaxWorks by
Vendor Systems Inc. Laser Systems
Tax program TaxWise TaxWorks
Address 6 Mathis Dr., NW 350 North 400 West
Rome, GA 30165 Kaysville, UT 84037
Telephone Sales: 800-755-9473 800-230-2322
E-mail address sales@taxwise.com sales@taxworks.com
Web site www.taxwise.com www.taxworks.com
Thomson
Vendor Creative Solutions
Tax program UltraTax
Address 7322 Newman Blvd.
Dexter, MI 48130
Telephone 800-968-8900
E-mail address csi.sales@thomson.com
Web site www.creativesolutions.
thomson.com
Exhibit 2: Rating the Tax Software
Satisfaction
1 = very dissatisfied, 5 = very satisfied
Were you
satisfied
with the With the With the
Number of installation ease of ease
respondents process? learning? of use?
Tax program
Drake Software 17 4.65 4.41 4.35
GoSystem Tax RS 50 4.47 3.65 3.64
Lacerte 584 4.50 4.33 4.42
Max Plus 44 4.20 3.75 3.58
ProSeries 148 4.56 4.39 4.39
ProSystem fx Tax 731 4.21 3.80 4.10
TaxWise 12 4.08 3.67 3.67
TaxWorks 29 4.48 4.14 4.24
UItraTax 395 4.52 3.97 4.17
Average 4.41 4.01 4.06
Total 2,010
Percentage
Overall whose
Overall product Support software
product rating Support rating ran on a
rating last year rating last year network
Tax program
Drake Software 4.35 3.98 1.94 3.94 82.4%
GoSystem Tax RS 3.92 * 2.48 * 82.0%
Lacerte 4.43 4.32 2.24 4.13 87.6%
Max Plus 3.59 4.05 2.90 4.02 59.1%
ProSeries 4.24 4.07 2.48 4.00 70.1%
ProSystem fx Tax 4.35 3.96 2.09 4.15 94.9%
TaxWise 3.42 3.64 3.33 3.25 75.0%
TaxWorks 4.21 4.24 2.34 3.86 75.9%
UItraTax 4.35 4.19 2.18 4.11 91.6%
Average 4.10 3.61 2.44 3.50 79.8%
Total
Percentage who
Network said the product
Network rating contained all the
rating last year necessary forms
Tax program
Drake Software 4.43 4.05 94.1%
GoSystem Tax RS 4.21 * 79.2%
Lacerte 4.33 4.17 84.2%
Max Plus 3.42 3.65 97.7%
ProSeries 3.70 3.59 62.8%
ProSystem fx Tax 4.38 4.13 87.9%
TaxWise 3.88 3.56 91.7%
TaxWorks 4.18 4.10 75.9%
UItraTax 4.32 4.23 88.5%
Average 4.09 3.50 84.6%
Total
* Not rated last year.
Exhibit 3: Switching Products
Percentage who Percentage who
planned to use would recommend
the same product the product
next year to a colleague
Tax program
Drake Software 88.2% 94.1%
GoSystem Tax RS 93.9% 82.0%
Lacerte 95.3% 93.8%
Max Plus 83.3% 79.1%
ProSeries 85.5% 87.7%
ProSystem fx Tax 97.8% 94.9%
TaxWise 66.7% 66.7%
TaxWorks 92.9% 96.4%
UltraTax 97.2% 92.3%
Average 89.0% 87.4%
Percentage who Satisfaction
converted from with conversion
another product package rating
last year (1=poor, 5=good)
Tax program
Drake Software 17.6% 2.50
GoSystem Tax RS 10.2% 2.33
Lacerte 1.2% 4.17
Max Plus 27.3% 2.55
ProSeries 0.7% 3.00
ProSystem fx Tax 3.2% 3.30
TaxWise 25.0% 2.33
TaxWorks 20.7% 3.50
UltraTax 14.0% 3.35
Average 13.3% 3.00
Reasons for switching to another products
Drake GoSystem Lacerte Max Plus
Software Tax RS
Price 32.0% 0.0% 14.3% 91.7%
Hard to use or install 8.8% 0.0% 57.1% 8.3%
Poor support 11.2% 20.0% 28.6% 0.0%
Lacked necessary functions 13.6% 0.0% 57.1% 8.3%
Was not accurate 3.2% 0.0% 14.3% 0.0%
Other 53.6% 80.0% 42.9% 16.7%
ProSeries ProSystem TaxWise TaxWorks
fx Tax
Price 0.0% 8.7% 66.7% 83.3%
Hard to use or install 0.0% 4.3% 0.0% 0.0%
Poor support 0.0% 21.7% 0.0% 16.7%
Lacked necessary functions 0.0% 21.7% 0.0% 0.0%
Was not accurate 0.0% 0.0% 33.3% 0.0%
Other 0.0% 65.2% 33.3% 16.7%
UltraTax Average
Price 20.0% 37.1%
Hard to use or install 9.1% 9.8%
Poor support 5.5% 12.3%
Lacked necessary functions 9.1% 12.6%
Was not accurate 3.6% 6.4%
Other 67.3% 38.5%
Exhibit 4: Filing Statistics
Number of
federal returns Percentage Percentage
prepared for the prepared for prepared for
2003 tax year individuals businesses
Tax Program
Drake Software 534 80.8% 19.2%
GoSystem Tax RS 1,646 58.4% 40.9%
Lacerte 771 69.7% 32.1%
Max Plus 373 72.0% 28.0%
ProSeries 448 71.4% 30.1%
ProSystem fx Tax 1,236 65.3% 35.3%
TaxWise 476 75.6% 24.4%
TaxWorks 578 75.4% 24.2%
UltraTax 856 71.0% 30.1%
Average 769 71.1% 29.4%
Percentage Percentage
of federal of federal Number of
returns returns e-filed state returns
e-filed last year prepared
Tax Program
Drake Software 62.3% 40.5% 390.0
GoSystem Tax RS 27.7% 4.6% 1,978.9
Lacerte 34.3% 19.1% 654.5
Max Plus 32.7% 25.2% 313.4
ProSeries 25.9% 14.8% 370.8
ProSystem fx Tax 28.5% 15.5% 1,350.3
TaxWise 62.4% 47.8% 412.8
TaxWorks 40.9% 30.2% 518.8
UltraTax 39.6% 22.6% 734.2
Average 39.4% 24.5% 747.1
Percentage Percentage Percentage
of state of state who charged
returns returns e-filed extra for
e-filed last year e-filing
Tax Program
Drake Software 47.0% 27.2% 33.0%
GoSystem Tax RS 27.2% 3.0% 13.3%
Lacerte 31.0% 17.2% 20.9%
Max Plus 28.8% 20.0% 35.5%
ProSeries 21.5% 11.6% 30.6%
ProSystem fx Tax 25.5% 13.4% 44.0%
TaxWise 53.1% 35.3% 30.6%
TaxWorks 49.0% 27.3% 45.5%
UltraTax 37.1% 20.0% 48.1%
Average 35.6% 19.4% 31.5%
Percentage who
planned to
charge extra for
e-filing next year
Tax Program
Drake Software 6.3%
GoSystem Tax RS 37.2%
Lacerte 42.3%
Max Plus 38.9%
ProSeries 50.4%
ProSystem fx Tax 37.0%
TaxWise 36.4%
TaxWorks 48.1%
UltraTax 36.1%
Average 37.0%
Exhibit 5: Special Client Services
Percentage Percentage of Percentage that
offering filings that planned to offer
tax-refund included such that service
advances advances next year
Tax program
Drake Software 11.8% 6.0% 11.8%
GoSystem Tax RS 0.0% N/A 0.0%
Lacerte 0.2% 10.0% 0.3%
Max Plus 9.1% 12.0% 13.6%
ProSeries 3.4% 3.3% 2.7%
ProSystem fx Tax 0.6% 2.0% 1.1%
TaxWise 8.3% 15.0% 8.3%
TaxWorks 10.3% 3.0% 10.3%
UltraTax 1.8% 6.3% 2.0%
Average 5.1% 6.4% 5.6%
Percentage that Percentage
offered on line of clients
organizers that
this year used them
Tax program
Drake Software 17.6% 60.0%
GoSystem Tax RS 14.3% 4.7%
Lacerte 27.0% 15.6%
Max Plus 20.5% 9.8%
ProSeries 13.0% 23.7%
ProSystem fx Tax 28.3% 13.7%
TaxWise 8.3% 1.0%
TaxWorks 14.3% 4.0%
UltraTax 28.6% 11.5%
Average 19.1% 16.0%
Exhibit 6: Product Details
Drake Software GoSystem Tax RS
Product prices
1040 $995-$1,495 Starting at $2,500
1040 renewal $995-$1,495 Starting at $2,500
State package Included Included
State renewal Included Included
Additional fee for No No
laser package
Pay-per-return $495-$545 for the No
pricing first 50 returns
Additional cost for No $5/federal;
electronic filing $2/state
software
Additional cost for No No
electronically filed
returns
Conversion package Yes Yes
available
Additional cost for No $2/return
conversion package
Filing
Direct filing (DF), service Both DF
bureau (SB) or both
Files state returns Yes Yes
electronically
Allows for electronic Yes Yes
signature
Market
Number of users, 16,658 75,000
2003 package
Percentage of renewals 95.35% 95%
from 2002 package
Number of years in 26 39
business
Support
Toll-free number No Yes
for support
Days and hours (Eastern M-F 8-10; M-F 9-8;
time) support available Sat. 8-6 Sat. 10-6;
during tax season Sun. 11-5
Days/hours support M-F 8-9; M-F 9-8
available during off-season Sat. 9-5
Number of tax-season 209 24 (for 1040 only)
support staff
Online support Yes Yes
Technology
Operating systems Windows 98, 2000, Windows 2000, XP
available ME, XP, NT
Recommended Windows XP, but Windows 2000, XP
operating system all of the above
are fine
Program size in Mb 57 Mb 273 Mb (1040 only)
Minimum RAM 64 Mb for Windows 128 Mb
recommended 98, 2000, NT and
128 Mb for Windows
ME, XP
Display and data
IRS data displayed on screen Yes Yes
Vendor data displayed on screen Yes Yes
Batch processing Yes Yes
Heads-down data entry Yes Yes
Program management tools
Reports Yes Yes
Organizers Yes Yes
Labels Yes Yes
Client letters Yes Yes
Scheduling program Yes No
Other packages available
Online tax-preparation option Yes Yes
State packages Yes Yes
Multistate package Yes Yes
Does your products include the following?
1120 Yes Yes
Included in price of 1040 Yes Yes
1120S Yes Yes
Included in price of 1040 Yes Yes
1065 Yes Yes
Included in price of 1040 Yes Yes
1041 Yes Yes
Included in price of 1040 Yes Yes
990 Yes Yes
Included in price of 1040 Yes Yes
706 Yes Yes
Included in price of 1040 Yes Yes
709 Yes Yes
Included in price of 1040 Yes Yes
Lacerte Max Plus
Product prices
1040 $2,140 $985 plus shipping
and updating
1040 renewal $1,819 10% early renewal
discount
State package $235-$340 Included
State renewal $199.75-$289 Included
Additional fee for N/A No
laser package
Pay-per-return $22/return federal Unlimited returns
pricing and one state included
Additional cost for No No
electronic filing
software
Additional cost for Unlimited federal: No
electronically filed $1,350 or $2/
returns return federal and
$2/return state
Conversion package Yes Yes
available
Additional cost for No No
conversion package
Filing
Direct filing (DF), service SB SB
bureau (SB) or both
Files state returns Yes Yes
electronically
Allows for electronic Yes Yes
signature
Market
Number of users, About 40,000 2,036
2003 package
Percentage of renewals About 95% 65%
from 2002 package
Number of years in 25 12
business
Support
Toll-free number Yes Yes
for support
Days and hours (Eastern M-F 10-10; Sat. M-F 8-10; Sat.
time) support available 11-6; Sun. 1-6; 9-5. Super
during tax season 24-hour support support: M-F
during week ending 8-midnight; Sat.
on April 15 9-5
Days/hours support M-F 10-9 M-F 8-8;
available during off-season Sat. 9-5
Number of tax-season Not disclosed 200+
support staff
Online support Yes Yes
Technology
Operating systems Windows 98, ME, Windows 95, 98,
available NT 4.0, 2000, XP ME, 2000, XP, NT
Recommended Any of the above Any of the above
operating system
Program size in Mb 26 Mb 800 Mb
Minimum RAM 128 Mb 64 Mb
recommended
Display and data
IRS data displayed on screen Yes Yes
Vendor data displayed on screen Yes Yes
Batch processing Yes Yes
Heads down data entry Yes No
Program management tools
Reports Yes Yes
Organizers Yes Yes
Labels Yes Yes
Client letters Yes Yes
Scheduling program Yes No
Other packages available
Online tax-preparation option No Yes
State packages Yes Yes
Multistate package Yes Yes
Does your products include the following?
1120 Yes Yes
Included in price of 1040 No Yes
1120S Yes Yes
Included in price of 1040 No Yes
1065 Yes Yes
Included in price of 1040 No Yes
1041 Yes Yes
Included in price of 1040 No Yes
990 Yes Yes
Included in price of 1040 No Yes
706 Yes Yes
Included in price of 1040 No Yes
709 Yes Yes
Included in price of 1040 No Yes
ProSeries ProSystem fx Tax
Product prices
1040 $949 (add $399 for $2,850
network license)
1040 renewal Same Call for details
State package $249-$349 $295-$725
State renewal Same Call for details
Additional fee for N/A No
laser package
Pay-per-return $15/return $26/return
pricing federal; $11/ federal; $21/
return state return state
Additional cost for Unlimited federal: Federal: $100;
electronic filing $750; unlimited $50/state or $100
software state: $400 for all states
Additional cost for $3/return federal; Unlimited federal:
electronically filed $2/return state $1,000; state:
returns $250/state or $500
for all states; or
federal: $100 plus
$3/return
transmission
charge; state: $50
per state plus $1/
return or $100 for
all states plus
$1/return.
Conversion package Yes (Drake Yes
available Software, Lacerte,
ProSystem fx, Tax
Relief, Saber,
TaxWise, UltraTax)
Additional cost for No No
conversion package
Filing
Direct filing (DF), service DF Both
bureau (SB) or both
Files state returns Yes Yes
electronically
Allows for electronic Yes Yes
signature
Market
Number of users, 50,000+ 20,000+
2003 package
Percentage of renewals N/A 96%
from 2002 package
Number of years in 13 40+
business
Support
Toll-free number Yes Yes
for support
Days and hours (Eastern Jan.6-April 15: M-F 8:30-9:30;
time) support available Mon.-Thurs. 9-9; Sat. 9-8; Sun. in
during tax season Fri. 9-8; Sat. April 10-6;
10-5; Sun. based 24-hour support
on seasonal demand April 12-15
Days/hours support Mon.-Thurs. 9-8; M-F 9-8
available during off-season Fri. 9-6
Number of tax-season Not disclosed 450+
support staff
Online support Yes Yes
Technology
Operating systems Windows 98, XP, Windows 98, NT
available NT, ME, 2000 Workstation
version 4.0,
Millennium, 2000;
XP Professional,
MDAC version 2.6
Recommended Windows XP, XP
operating system 2000
Program size in Mb 2 Gb 100 Mb (includes
laser forms)
Minimum RAM 512 Mb 256 Mb
recommended
Display and data
IRS data displayed on screen Yes Yes
Vendor data displayed on screen Yes Yes
Batch processing Yes Yes
Heads-down data entry Yes Yes
Program management tools
Reports Yes Yes
Organizers Yes Yes
Labels Yes Yes
Client letters Yes Yes
Scheduling program Yes Yes
Other packages available
Online tax-preparation option No Yes
State packages Yes Yes
Multistate package Yes Yes
Does your products include the following?
1120 Yes Yes
Included in price of 1040 No No
1120S Yes Yes
Included in price of 1040 No No
1065 Yes Yes
Included in price of 1040 No No
1041 Yes Yes
Included in price of 1040 No No
990 Yes Yes
Included in price of 1040 No No
706 Yes Yes
Included in price of 1040 No No
709 Yes Yes
Included in price of 1040 No No
TaxWise TaxWorks
Product prices
1040 $995 $1,095
1040 renewal $995 $995
State package $295 for 1-5 $345
states; $695 for
all states
State renewal $295 for 1-5 $200
states; $695 for
all states
Additional fee for No No
laser package
Pay-per-return $400 for up to $15/return
pricing 30 returns ($400 deposit)
Additional cost for No No
electronic filing
software
Additional cost for Unlimited federal: $1-$5/return
electronically filed $750; $1-$5/return federal (varies
returns federal (depending with volume);
on volume); $1-$2.50/return
$0.50-$1/return state
state
Conversion package Yes (Crosslink, Yes, from
available Drake, Lacerte, most vendors
Orrtax for DOS,
Orrtax for
Windows,
ProSeries, Saber,
TaxWorks and
UltraTax)
Additional cost for No No
conversion package
Filing
Direct filing (DF), service Both DF
bureau (SB) or both
Files state returns Yes Yes
electronically
Allows for electronic Yes Yes
signature
Market
Number of users, 21,131 4,900
2003 package
Percentage of renewals 90% About 91%
from 2002 package
Number of years in 18 33
business
Support
Toll-free number Yes Yes
for support
Days and hours (Eastern M-F 8:30-midnight; M-F 9-10;
time) support available Sat. 8:45-5; Sat. 9-6
during tax season Sun. to be
announced
Days/hours support M-F 8-4 M-F 10-7
available during off-season
Number of tax-season 200+ Varies during time
support staff of day or season
(average 50)
Online support Yes Yes, via e-mail
Technology
Operating systems Windows 2000, XP Windows
available
Recommended Windows 2000, XP XP
operating system
Program size in Mb 160 Mb 80-100 Mb
Minimum RAM 128 Mb 128 Mb
recommended
Display and data
IRS data displayed on screen Yes Yes
Vendor data displayed on screen Yes Yes
Batch processing No Yes
Heads-down data entry Yes Yes
Program management tools
Reports Yes Yes
Organizers Yes Yes
Labels Yes Yes
Client letters Yes Yes
Scheduling program No Yes
Other packages available
Online tax-preparation option No Yes, via
www.taxengine.com
State packages Yes Yes
Multistate package Yes Yes
Does your products include the following?
1120 Yes Yes
Included in price of 1040 No No
1120S Yes Yes
Included in price of 1040 No No
1065 Yes Yes
Included in price of 1040 No No
1041 Yes Yes
Included in price of 1040 No No
990 Yes Yes
Included in price of 1040 No No
706 Yes Yes
Included in price of 1040 No No
709 Yes Yes
Included in price of 1040 No No
UltraTax
Product prices
1040 $1,975
1040 renewal $1,675
State package $200-$300
State renewal $200-$300
Additional fee for No
laser package
Pay-per-return $16/return
pricing federal; $9/return
state
Additional cost for No
electronic filing
software
Additional cost for Unlimited federal:
electronically filed $1,000; $2/return
returns federal; $1/return
state
Conversion package Yes, from
available 14 products
Additional cost for No
conversion package
Filing
Direct filing (DF), service SB
bureau (SB) or both
Files state returns Yes
electronically
Allows for electronic Yes
signature
Market
Number of users, 17,000
2003 package
Percentage of renewals 95%+
from 2002 package
Number of years in 25
business
Support
Toll-free number Yes
for support
Days and hours (Eastern M-F 9-10; Sat.
time) support available 9-6; Sunday before
during tax season filing deadline
10-6
Days/hours support M-F 9-8
available during off-season
Number of tax-season 100+
support staff
Online support Yes
Technology
Operating systems Windows 98 SE,
available 2000, XP,
Terminal Server,
Citrix MetaFrame
Recommended XP
operating system
Program size in Mb 25 Mb
Minimum RAM 64 Mb
recommended
Display and data
IRS data displayed on screen Yes
Vendor data displayed on screen Yes
Batch processing Yes
Heads-down data entry No
Program management tools
Reports Yes
Organizers Yes
Labels Yes
Client letters Yes
Scheduling program Yes
Other packages available
Online tax-preparation option Yes
State packages Yes
Multistate package No
Does your products include the following?
1120 Yes
Included in price of 1040 No
1120S Yes
Included in price of 1040 No
1065 Yes
Included in price of 1040 No
1041 Yes
Included in price of 1040 No
990 Yes
Included in price of 1040 No
706 Yes
Included in price of 1040 No
709 Yes
Included in price of 1040 No
Exhibit 7: Profile of the Respondents
Percentage responding to the survey
Drake GoSystem
Software Tax RS Lacerte Max Plus ProSeries
Number of
respondents for
each product 17 50 584 44 148
Firm type
Sole practitioner 41.2% 6.1% 14.0% 39.5% 26.5%
Local firm 52.9% 55.1% 81.5% 58.1% 71.4%
Regional firm 5.9% 28.6% 4.2% 2.3% 2.0%
National firm 0.0% 4.1% 0.3% 0.0% 0.0%
Big Four firm 0.0% 6.1% 0.0% 0.0% 0.0%
ProSystem
fx Tax TaxWise TaxWorks UltraTax Average
Number of
respondents for
each product 731 12 29 395
Firm type
Sole practitioner 5.1% 33.3% 20.7% 12.0% 12.0%
Local firm 82.0% 66.7% 79.3% 86.0% 80.3%
Regional firm 12.2% 0.0% 0.0% 1.8% 6.9%
National firm 0.7% 0.0% 0.0% 0.3% 0.5%
Big Four firm 0.0% 0.0% 0.0% 0.0% 0.3%
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, now is 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. |
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