Tax Tips & News: stifling competition

Jackson Hewitt Loses RAL Funding

4 minutes read

Jaskson Hewitt–the 2nd largest tax preparation business behind H&R Block–has lost over 50% of their Refund Anticipation Loan (RAL) funding for the 2010 tax season.  Due to regulatory crackdowns, the bank that funded Jackson Hewitt’s RAL program–Pacific Capital Bankcorp Inc.–was blocked by the Office of the Comptroller, and ordered to leave the RAL business.

“It’s potentially disastrous for Jackson Hewitt,” said Vishnu Lekraj, an analyst at Morningstar Inc. “If they lose the ability to provide...

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H&R Block CEO Encourages Stifling of Competition

3 minutes read

Ahhh H&R Block.  You really are the McDonalds of income tax preparation.  It’s like I always say, if you wan’t a good burger, you don’t go to McDonalds.  Sure, it tastes good going down, but you’ll be sorry later…

Here’s H&R Block big wig Russ Smyth being interviewed about why he favors the new tax preparer regulations.  One of his answers: Because it will drive smaller Mom & Pop industries out of business.  He then quickly followed up that statement with “H&R Block encourages competition..,”

Well,...

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