YOUR AFFORDABLE SOLUTION FOR. Tax Software

Transcription

1 YOUR AFFORDABLE SOLUTION FOR Tax Software

2 TaxACT 2007 Press Kit Table Of Contents 14 What's New For 2007 Find out what features and products are new to the TaxACT Family for the 2007 Tax Season. 16 TaxACT Online Editions The power of boxed software online. Prepare, print and e-file taxes conveniently over-the-web. Anytime. Anywhere. 2 TaxACT Facts Find out why TaxACT has earned the status of Value Leader and the loyalty of millions of customers. 18 TaxACT Desktop Editions Packed with features so taxpayers can confidently prepare their tax returns fast and easy. 20 TaxACT Business Editions The perfect choice for preparing business 1065, 1120S, and 1120 tax returns. 22 TaxACT Press Releases Learn about TaxACT s most recent announcements. 27 TaxACT Company Summary 2nd Story Software and TaxACT Fast Fact Finder. 29 TaxACT Contact Us Phone, Fax or TaxACT, we are happy to help. TAXACT SYSTEM REQUIREMENTS: Additional Questions Regarding TaxACT? Check out TaxACT s Online Media Center at: Here you will find an extensive FAQs section, logos, sample screens, box shots, and more! Operating System: Windows 95/98/Me/2000/XP/Vista Processor: Pentium or equivalent RAM: 64MB recommended Monitor: SVGA or better (256 colors minimum) Hard Drive Space: 42MB Internet Access: Required for e-filing & online features Web Browser: Internet Explorer version 4.0 or greater Printer & Mouse: Highly recommended TaxACT 2007 Press Kit

3 TaxACT Facts FROM PRICE TO PERFORMANCE, THERE IS NO COMPARISON! Naturally, when a company has the confidence to lead with a completely FREE product, you re bound to gain some attention. And, while we aren t afraid to acknowledge that price may be one of the factors which initially helped the TaxACT brand gain a bit of exposure; it takes much more than competitive pricing for a product line, such as TaxACT, to earn the status of value-leader and the loyalty of millions of customers. TAXACT ACKNOWLEDGES THE FUNDAMENTALS & RETAINS THE NO. 2 MOST VISITED ONLINE DESTINATION FOR TAX PREPARATION SOFTWARE AND SERVICES! Customer satisfaction is our bottom line. Improvements to TaxACT s interface, content, and functionality have always been driven by user feedback; and, the challenges that the majority of American taxpayers face when preparing and filing a tax return. Because we have listened to our customers and have correctly interpreted key trends among do-it-yourself taxpayers for nearly a decade, the popularity of TaxACT has flourished gaining significant market share. Point of fact, according to the collective week end-reports provided by Hitwise during the 2004, 2005, and 2006 primary tax seasons, TaxACT has been the 2 nd most visited online destination for tax preparation services for three consecutive years. Representative of TaxACT s success is a monthby-month aggregate of the data contained within Hitwise s audience measurement week end-reports for the Business & Finance Accountancy Category, which details the traffic share of the top three tax software titles during the 2006 primary tax season including TaxACT. TAX YEAR 2006 Web traffic share JANUARY FEBRUARY MARCH APRIL COMBINED 4-MONTH AVG TaxACT 14.11% 19.90% 28.27% 21.31% 20.90% TurboTax 44.70% 46.68% 39.77% 43.54% 43.67% TaxCut 13.01% 9.95% 7.39% 11.82% 10.54% All Others 28.18% 23.47% 24.57% 23.33% 24.89% WHAT MAKES OUR FREE OFFER SO UNIQUE? Simple: TaxACT Standard enables ALL American taxpayers the ability to prepare, print and e-file their Federal return at nocharge no restrictions, no exceptions to the rule, no gimmicks, and no fine print. Since its inception, 2nd Story has very much been a progressive company as we pioneered the concept that everyone can use free tax software to prepare their own federal return. Each year, TaxACT demonstrates its belief that no American taxpayer should be obligated to pay fees for basic tax software Tax Year 2006 Web Traffic Share 10.54% 24.89% TaxACT TurboTax TaxCut All Others Data source: Hitwise for 5/1/2006 to 4/28/ % 43.67% calculations or, to e-file a federal return. This is a real testament which validates a software company can succeed by scaling its fees accordingly for its valueadded software features. After a decade of service, TaxACT continues to help American taxpayers combat the complexities of our nation s ever-changing tax codes by providing Web-based tax solutions that help to conserve time, save money, strategize a tax-savings plan, and avoid making costly mistakes. 2 TaxACT 2007 Press Kit 3

4 TaxACT Facts TAXACT OFFERS VALUE BEYOND ITS FREE STANDARD EDITION TaxACT Online Standard users can elect to purchase TaxACT Online 1040 State a la carte a software service option, which also includes one (1) free state e-file. Those choosing to purchase a TaxACT Online 1040 State Edition do so because TaxACT States are fully integrated with all Federal 1040 versions of TaxACT helping them to conserve time and money, and eliminate the opportunity for costly mistakes to occur, while ensuring they receive a speedy refund. Another option available to TaxACT Online Standard and Online Deluxe Edition users is to upgrade to TaxACT s best value package the Online Ultimate Bundle. Our Online Ultimate Bundle includes TaxACT Online Deluxe and Online 1040 State software; and, includes the ability to e-file one (1) federal and state return for a cost less than what our competitors charge to e-file a single return. TAXACT FACTS Evidence of TaxACT s exceptional performance and popularity is signified, year-after-year, by independent statistical studies that continue to demonstrate TaxACT s ability to grow its traffic share. For three consecutive tax seasons (2004, 2005, and 2006), TaxACTOnline.com was the 2nd highest visited online destination for tax preparation services during the primary tax season. According to Hitwise s week end-reports, beginning February 20 April 16, 2005, TaxACT Online commanded the 2nd highest draw in traffic as compared to other Web-based tax preparation services during the 2004 tax season; According to Hitwise s week end-reports, beginning February 5 April 29, 2006, TaxACT Online commanded the 2nd highest draw in traffic as compared to other Web-based tax preparation services during the 2005 tax season; According to Hitwise s week end-reports, beginning January 14 April 30, 2007, TaxACT Online commanded the 2nd highest draw in traffic as compared to other Web-based tax preparation services during the 2006 tax season; and According to a March 14, 2007 press release posted to the wire by comscore Media Metrix (the leading Internet audience measurement service that reports details on online media usage), the respective Web site visits for Intuit.com, TaxACT.com and HRBlock.com during Feb. 07 were equal to 12M, 6.4M and 4M. 4 TaxACT 2007 Press Kit 5

5 TaxACT Facts TRAFFIC SHARE COMPARISON BY GENDER Women represent just over 62% of all traffic for TaxACTOnline. This hold true across the competitive industry segment as well. TaxACT Online Traffic Share by Gender 37.74% TaxACT Online Traffic Share by Age 21.99% 18.14% 11.97% Male Female Data source: Hitwise for 5/1/2006 to 4/28/ % Data source: Hitwise for 5/1/2006 to 4/28/ % 62.25% TRAFFIC SHARE COMPARISON BY AGE TaxACTOnline s traffic share is dominated by the demographic. This age range represented a little over 47% of the web traffic share. The largest increase with respect to age in tax season 2006 was in the 55+ age group. Traffic Share Comparison by Household Income (HHI) Households with an income between $30k - $100k represented slightly less than 60% of all traffic to TaxACTOnline during the 2006 tax season. TaxACT saw its largest growth in households with an income under $30k (2.98%). TaxACT Online Traffic Share by HHI 24.47% 11.98% 4.07% <30K 30-60K K K >150K Data source: Hitwise for 5/1/2006 to 4/28/2007 TaxACT continues to show strong growth year-after-year In fact, TaxACT saw nearly double the growth rate of accepted e-file returns compared to the industry as a whole for tax year TAX Season IRS Online Returns* TaxACT Returns** TaxACT Market Share Growth 20,325,903 22,557, % 2,520,742 3,008, % 12.40% 13.34% 25.24% 34.24% The rankings data is based on market share of visits, which is the percentage of online traffic to the website or industry, for the months January 2007 through April 2007 from the Hitwise sample of 10 million US Internet users. Hitwise measures more than 1 million unique websites on a daily basis, including sub-domains of larger websites. Hitwise categorizes websites into industries on the basis of subject matter and content, as well as market orientation and competitive context. * Consumer software e-file returns accepted by the IRS ** IRS accepted consumer e-file returns submitted by 2nd Story. Tax season 2005 & 2006 ending October 2006 & 2007 respectively. 6 TaxACT 2007 Press Kit 7

6 TaxACT Facts TaxAC T A Class of Its Own TaxACT s ability to grow its market share year-after-year goes well beyond having an innovative pricing model. The TaxACT product line flourishes because of 2nd Story Software s commitment to consistently turning out superior products and dedication to providing top-notch customer service and support. In fact, where TaxACT leads, others are now trying to follow. Why? In the end, do-it-yourself (DIY) tax preparers are investing their time and money in products that offer functionality and content that are in direct proportion to their specific situation. How does TaxACT s product line compare to the competitions? We think you will agree, from price to performance, TaxACT is the tax preparation software value-leader. 8 Entry Level/Standard Software Comparison Chart TaxACT Online Standard TurboTax Free Online Edition TaxCut Online Basic FREE FREE $14.95 $13.95 $30.95 $29.95 Price: Federal Price: (e-file included) State Price: (e-file included) Industry Leadership TaxACT Standard The Pioneer of FREE Our completely FREE products, TaxACT Online Standard and Standard Software for Windows support Form 1040, 1040A and 1040EZ. Users can prepare, print and electronically file one (1) federal return again all at no-cost! No restrictions, no gimmicks, no mail-in rebates. Better still, TaxACT Standard users can elect to purchase state tax software without having to pay an inflated cost to file a state tax return. What may surprise you is that TaxACT Standard contains all of the forms that are offered in its premium counterpart, TaxACT Deluxe, minus Form 1040x. Thus, the Standard Edition is also well-used among DIY taxpayers that need little handholding because the program offers complex forms for Business Income, Capital Gains, Rental Property, Itemized Deductions, Depreciation and much more. Ultimately, TaxACT Standard s popularity is not solely based on its free sticker price. TaxACT Standard s real strength is that it is a robust, fully-functional, easy-touse tax software product. TaxACT 2007 Press Kit Pioneer of completely free tax preparation Free to prepare, Free to print and Free to e-file N/A Has provided free federal tax preparation software for a decade N/A Supports the most diverse group of tax filers including Schedule C filers N/A Most economical state e-file option Key Features Step-by-step interview Check for errors & flags potential audit risks Includes free support via the Web and Year round tax software solution Preview: October December Final: January October Information verified 10/26/

7 TaxACT Facts Deluxe/Premium Software Comparison Chart TaxACT Online Deluxe TurboTax Online deluxe maximizer TaxCut Online premium + e-file Price: Federal Price: (e-file included) $9.95 $49.95 $19.95 State Price: (e-file included) $13.95 $39.95 $29.95 Unlimited session topic support Additional $29.95, limited to 20 mins of assistance Limited to one tax advisory session Industry Leadership: Most economical federal software product in its class Most economical state e-file option Key Features: Tax topic guidance/support Life Event Guidance Looks for deduction opportunities as you go TaxAC T Deluxe Value Beyond Free Like the Standard Edition, TaxACT Deluxe includes complex forms, such as forms for Business Income, Capital Gains, Rental Property, Itemized Deductions, Depreciation, and more. Deluxe users have the added benefit of being able to access more in-depth help features, extra advice, guidance systems and TaxACT TaxPayer Support far below the cost of comparable tax packages. Availability of an All-inclusive Package TaxACT Audit Alerts TaxCut All-inclusive Package: Offers package for federal & state software, plus federal & state e-file Helps find overlooked deductions TurboTax $16.95 $44.95 Online Deluxe + State Premium + State + E-file Information verified 11/26/2007 Free Technical Support by Phone, , and Over-the web Information verified 11/26/ TaxACT 2007 Press Kit 11

8 TaxACT Facts By challenging the development and marketing conventions that have become common practice of other tax software producers, TaxACT has been able to grow and maintain its users by: Doing something almost unheard of today Provide a FREE, no gimmick, fully functional product without confusing restrictions. Eliminating the fine print. Give consumers savings upfront. It s called Bottom Line Pricing. TaxACT believes savings should be upfront and without strings attached eliminating inducements like rebates, free bundled software, or shopping reimbursements at nationwide retailers. Simply put, rebates make big corporations rich by enticing consumers to think they are getting a discount. But, in reality, few people actually attempt to redeem or are able to realize their rebates leaving a lot of money in the pockets of corporations. TaxACT also provides it s users with consistent pricing. Eradicating expensive marketing initiatives that cause price increases. Why don t I see TaxACT offered in retail outlets? As you can imagine, we hear that question quite often. Retail is a great way to gain brand recognition. Conversely, selling products via the retail channel tends to cause pricing inconsistencies and increases a concept that is completely outside of our value-vision. By eliminating the middleman and emphasizing TaxACT s distribution direct to its end-users via the Web, our customers never need to shop around for the best price. Plus, we are able to consistently offer our premium wares at rates that are far less than what the other tax software producers promote even after their rebates have been applied. Maintaining customer service functions in-house and within U.S. borders. All of our development, marketing, and service/ support functions are maintained in-house and are located in Iowa. The close proximity of our company s departments allows us to react quickly and concisely to customer feedback and requests. In addition, 2nd Story Software is dedicated to helping U.S. taxpayers formulate and implement wellinformed tax savings strategies with ease, while looking out for the cost-conscious. We do so by utilizing the U.S. labor force exclusively. It is our company s belief that outsourcing beyond U.S. borders and to overseas countries invites an opportunity for taxpayers data to be at risk and is likely to create communication barriers with our customers. The environment that we have established has enabled us the ability to have a dialogue with our customers, which is the foundation of our success. The Translation? By eliminating the risk of expense, marketing responsibly and targeting our customers needs, millions of Americans have put TaxACT to the test. Sure, we realize that some of our customers may only need to use our free product and we are glad to help. But by providing the content and functionality that is fundamental to the preparation of tax returns, TaxACT s suite of products and services proves its longevity by continuing to serve its users as their needs have changed or grown more complex. Do you have additional questions regarding TaxACT? Don t forget to visit the TaxACT Online Media Center! At www. TaxACT.com/media you will find an extensive FAQs section, logos, box shots, and much, much, more. 12 TaxACT 2007 Press Kit 13

9 What's New For 2007 From price to performance there is no comparison! And now TaxACT just got better! Take a look at some of the new and improved features that TaxACT Standard and Deluxe offer for the 2007 tax season. New Features Available Exclusively in TaxACT 2007 Deluxe: New! TaxACT TaxPayer Support. Doing your taxes is stressful especially when you re stumped by a tax question. Many do-it-yourselfers need the guidance of a tax specialist to walk them through specific tax situations. Via phone or , TaxACT TaxPayer Support provides Deluxe desktop and Online users access to a highly qualified panel of TaxACT experts at no additional cost. New & Improved Features For TaxACT 2007 Standard & Deluxe: Enhanced! Improved State Interview. Resolve your questions quickly and concisely. Completing your state return has never been easier with TaxACT s intuitive and comprehensive interview process enabling you to complete your tax return with confidence. Enhanced! Display Screen Auto-sizer (desktop Only). Don t squint to see that form! TaxACT now programmatically auto-sizes the forms displayed on your screen to whatever resolution you re running. Reading forms on your screen just got a ton easier. Enhanced! Life Events Guidance. Get the direction you need to manage the events that have an impact on your unique tax situation. Pinpoint the deductions and credits you re eligible to receive this tax season with even greater precision while spending less time preparing your tax return. This season, TaxACT expands its guidance and tax consequences for 15 major Life Event categories, including: Bankruptcy, Child Care Expenses, Community Property Sales, First Job/First Time Filing, Foreclosure/Abandonment, Foreign Nationals, Hosting an Exchange Student, Major Illness, Military, Multiple State Filings, Non-business Bad Debt, Purchase a Vehicle, Received an IRS Notice, Received Tip Income, and Sold a Home. Enhanced! PDF Printing Capabilities (desktop Only). No printer? No Problem. TaxACT s newly enhanced PDF printing functionality inside the program now supports the ability to print anything to a PDF formatted file. The pdf file is a great convenience that you can take to a printer anytime, and it makes storing a copy of your return easier. No need to keep old versions of TaxACT around just to view or print your prior year return. New! Learn More Self-help Feature. Get answers to your questions faster! Help is on the way with the new Learn More link on Quick Q&A Topics. Enhanced! Q&A Search Feature. Have a question about where to enter your tax information? TaxACT s Q&A Search feature has been expanded to include even more topics. Just enter the keywords in the Search Box located in the top right corner of TaxACT s screen. You ll immediately be given a list of relative tax topics to guide you to the appropriate interview question. New! Data Archive service (online only). Preserve access to your 2007 tax return! In the world of computers, backing up your files is essential. But, let s face it, print outs, discs and saved files get lost. TaxACT s Data Archive Service safeguards your tax return and makes your 2007 tax data available over-the-web for 3 years from the date of filing 24/7, wherever you are. Avoid paying the IRS $39 replacement fee for a lost tax return. Online Deluxe and Standard users can purchase this beneficial service for the introductory price of $5.95 $7.95 respectively during the primary tax season. 14 TaxACT 2007 Press Kit 15

10 TaxACT Online Editions Users may access TaxACT s Online service by visiting TaxACT online 2007 standard: Includes the ability to prepare, print, & e-file one (1) FREE Federal tax return. TaxACT Standard users also receive free technical support online as well as by . TaxACT Online 2007 State 1040: Integrates seamlessly with TaxACT 2007 Online Deluxe & Standard, plus, the ability to e-file one (1) state return at no extra cost. (TaxACT supports all states assessing state income tax. E-filing is available for all states that accept e-filing.) PRICE: $13.95 PER STATE RELEASE DATE: January 8, 2008 TaxACT Online 2007 Ultimate Bundle (Deluxe + State): Includes TaxACT Online Deluxe, one designated Online State Edition, and the ability to e-file one (1) Federal and State return at no additional cost. PRICE: $16.95 (One Federal Tax Return) RELEASE DATE: January 8, 2008 PRICE: FREE (One Federal Tax Return) RELEASE DATE: January 8, 2008 TaxACT online 2007 Deluxe: Includes the ability to prepare, print, & e-file one (1) Federal tax return. Also included are advanced calculators, reports, convenience features (i.e. the ability to import past year returns), and a robust help/alert system including J.K. Lasser s Your Income Tax 2008 Guide. Deluxe purchasers also receive free access to technical support by phone (after dialing a toll-number) over-the-web, and by ; plus, TaxACT TaxPayer Support - a panel of TaxACT tax experts who specialize in discussing tax topics. PRICE: $9.95 (One Federal Tax Return) RELEASE DATE: January 8, 2008 TaxACT Standard & Deluxe Online users wanting to prepare a State return must use TaxACT Online States. Prices and product offerings are subject to change without notice. 16 TaxACT 2007 Press Kit 17

11 TaxACT Desktop Editions Users may download TaxACT software by visiting Prefer to order TaxACT on CD-ROM and have the software shipped? Orders for TaxACT on CD may be placed at or by calling 2nd Story s Sales Department at (800) TaxACT 2007 standard: Includes the ability to prepare, print, & e-file one (1) FREE Federal tax return. TaxACT Standard users also receive free technical support online as well as by . PRICE: FREE (One Federal Tax Return) RELEASE DATE: January 8, 2008 TaxACT 2007 Deluxe: Includes the ability to prepare, print, & e-file one (1) Federal tax return*. Also included are advanced calculators, reports, convenience features (e.g. the ability to import past year returns), and a robust help/alert system including J.K. Lasser s Your Income Tax 2008 Guide. Deluxe purchasers also receive free access to technical support by phone (after dialing a toll-number) over-the-web, and by ; plus, TaxACT TaxPayer Support - a panel of TaxACT tax experts who specialize in discussing tax topics. PRICE: $12.95 (Unlimited paper returns. One federal e-file return*) RELEASE DATE: January 8, 2008 TaxACT 2007 State 1040: Integrates seamlessly with TaxACT 2007 Deluxe & Standard. TaxACT supports all states assessing state income tax. State e-filing is available for all states that accept e-filing. The cost to e-file is $7.95 per return. PRICE: $13.95 PER STATE (Unlimited paper returns.) RELEASE DATE: January 8, 2008 TaxACT 2007 Ultimate Bundle (Deluxe + State): Includes TaxACT Deluxe, one designated State Edition, and the ability to e-file one (1) Federal return at no additional cost. Additional federal and state e-files are $7.95 each, up to 5 e-file returns allowed. PRICE: $19.95 (Unlimited paper returns. One federal e-file return*) RELEASE DATE: January 8, 2008 Prices and product offerings are subject to change without notice. *Additional e-file returns are $7.95 each. Up to 5 e-file returns allowed. * CD-ROM shipping & handling fees apply ($5.95 per order). Additionally, desktop users wanting to prepare a State must use TaxACT State Editions on desktop. 18 TaxACT 2007 Press Kit 19

12 TaxACT Business Editions TaxACT Business Editions are the perfect choice for preparing 1065, 1120S, and 1120 tax returns. Business Editions are available on CD-ROM* or can be downloaded straight to your computer. Orders may be place at or by calling 2nd Story s Sales Department at (800) TaxACT 2007 business 1065: Includes the forms, schedules & worksheets to prepare Form 1065 for a partnership return. PRICE: $22.95 (One Federal Tax Return) RELEASE DATE: January 8, 2008 TaxACT 2007 Business 1120S: Includes the forms, schedules & worksheets to prepare Form 1120S for an S Corporation return. PRICE: $22.95 (One Federal Tax Return) TaxACT 2007 Home & Business 1065 Bundle: Includes TaxACT 2007 Deluxe, one (1) TaxACT 1040 State Edition, TaxACT 2007 Business 1065 & one (1) free electronically filed 1040 Federal return. PRICE: $44.95 TaxACT 2007 Home & Business 1120S Bundle: Includes TaxACT 2007 Deluxe, one (1) TaxACT 1040 State Edition, TaxACT 2007 Business 1120S & one (1) free electronically filed 1040 Federal return. PRICE: $44.95 TaxACT 2007 Home & Business 1120 Bundle: Includes TaxACT 2007 Deluxe, one (1) TaxACT 1040 State Edition, TaxACT 2007 Business 1120 & one (1) free electronically filed 1040 Federal return. PRICE: $44.95 TaxACT 2007 state 1120S: Includes seamless integration with TaxACT S. (State package are available for the following states: AZ, FL, CA, GA, IA, IL, IN, MN, MO, NY, SC & WI PRICE: $13.95 per state TaxACT 2007 state 1120: Includes seamless integration with TaxACT (State package are available for the following states: FL, NY, & WI PRICE: $13.95 per state TaxACT 2007 Business 1120: Includes the forms, schedules, & worksheets to prepare Form 1120 for a C Corporation return. PRICE: $22.95 (One Federal Tax Return) TaxACT 2007 state 1065: Includes seamless integration with TaxACT State package are available for the following states: AZ, FL, CA, GA, IA, IL, IN, MN, MO, NY, SC & WI PRICE: $13.95 per state TaxACT 2007 Business Editions allow users to prepare one return only. Prices and product offerings are subject to change without notice. * Purchasers ordering software on CD-ROM will need to include $5.95 for shipping & handling. 20 TaxACT 2007 Press Kit 21

13 TaxACT Press Releases Get A Head Start On Year-End Tax Planning Maximize your return fast & FREE with TaxACT 2007 Preview Products Cedar Rapids, IA October 2, nd Story Software, Inc., developers of TaxACT software, celebrates ten years of free federal Webbased tax preparation software and announces the immediate release of TaxACT 2007 Preview products now available. As a trusted and secure source for tax preparation & electronic filing services for millions of taxpayers, TaxACT.com is the only Web-based tax planning and preparation solution to offer taxpayers a year-round solution. Choosing the right TaxACT product is contingent upon the taxpayer s situation and the amount of assistance that s/he may need to recognize & take full advantage of the various deductions & credits that one is entitled to claim. TaxACT Standard, a popular choice among those who traditionally file a straight-forward federal return is free to prepare, print & e-file. The Deluxe version, which is $9.95 when you choose to print or e-file a federal return, is packed with additional help & guidance. In addition, consumers can choose between two platforms: TaxACT Online (overthe-web) or TaxACT software (a download file that installs to their hard drive). All taxpayers are encouraged to put TaxACT s free Deluxe Preview Edition to the task of calculating their 2007 tax liability for a FREE end-of-the-yearcheck-up helping to minimize their tax bill & maximize personal savings. This unique & powerful tax planning service provides an easy-to-use interview format that helps taxpayers conduct a thorough analysis of their tax situation. For the second consecutive year taxpayers can perform end-of-year tax planning for both their federal & state taxes with the TaxACT State Planner feature. Visitors need only to complete the site s free online registration to gain access to TaxACT s Online Deluxe Preview version to generate a forecasted federal & state income tax refund or liability amount providing users with valuable insight into their tax situation. The tax code is dynamic subject to change every year. Couple that with even the smallest change to your personal circumstances and the impact on your tax liability can be tremendous, says Stephanie Behrends, spokeswoman for 2nd Story Software, Inc. Behrends continues, While early tax preparation offers filers a distinct opportunity to coordinate the lion s share of financial information and documents, the real goal of effective tax planning is to reduce your tax liability. To reach that objective, taxpayers have turned to TaxACT Preview as it is a workhorse that helps users to formulate a comprehensive tax planning strategy providing them with tax guidance, tips, calculators, access to the most current tax laws & more. Deluxe Preview outlines tax-savings strategies tailored to your unique tax situation which can be implemented prior to the end of the year helping you to save money on your taxes. Other Deluxeonly features include access to: additional forms, calculators & reports. Plus, Deluxe integrates America s all-time best selling tax guide, J.K. Lasser s Your Income Tax Guide by John Wiley & Sons, Inc.; this contextsensitive, line-by-line help provides insight to complex tax laws, planning opportunities, & potential pitfalls to avoid based on recent tax law changes & pending legislation before Congress. 22 TaxACT 2007 Press Kit 23

14 TaxACT Press Releases Don t Suffer the Alternative The Alternative Minimum Tax That Is Reduce the effect of AMT by using TaxACT 2007 Preview CEDAR RAPIDS, IA October 24, 2007 The individual Alternative Minimum Tax (AMT), implemented in 1969, is a parallel income tax system that was created to prevent 155 wealthy Americans from aggressively using tax credits, deductions, and legal tax shelters as tools to help them avoid having to pay federal income tax. The idea was simple: Create a minimum tax that ensured everyone pays Uncle Sam his due. Fast forward to present day and you ll find millions of middle-income Americans are now getting snared by the AMT. The main reason the AMT now reaches into the pockets of the middle-class is because regular income tax brackets are indexed for inflation but the AMT thresholds are not. The result has been the steady expansion of households who find themselves hit by the AMT -- especially households with a large number of children, education credits, residential energy credit and/or state and local taxes. Why haven t Americans been clamoring for an immediate overhaul to the AMT? Thus far, the full effects of the AMT have been deferred by Congress enacting a series of temporary patches -- boosting the amount of the AMT exemption. The last temporary fix to increase the exemption, however, expired at the end of If Congress fails to ratify another provisional one-year increase in the next few months, the number of households paying the AMT will escalate exponentially from approximately 4 million in 2006 to nearly 23 million for To determine if a taxpayer owes tax under the AMT, filers must calculate their taxes under both the regular tax and AMT systems making the Alternative Minimum Tax tax a bit of a misnomer considering taxpayers must pay the higher of the two. The biggest factor impacting AMT filers is that they are no longer eligible to claim certain deductions and exemptions (i.e. education credits, child care credits, and the deduction for state and local taxes). Sound complicated? It can be if taxpayers don t plan ahead and use the tools that are available to them as a significant portion of taxpayers may be surprised when they are suddenly hit with a big tax bill, plus possible penalties come next April. Some planning tools are even free, such as the tool offered by 2nd Story Software, Inc., makers of the popular tax program TaxACT. It seems unlikely that lawmakers will fail to pass another patch to serve as a quick fix to hold down the reach of the AMT. Guessing wrong, however, could prove costly. Unfortunately, there are a vast number of factors that will trigger the alternative tax for any given taxpayer, says Stephanie Behrends, spokeswoman for 2nd Story Software. TaxACT Preview is a taxpayer s ally allowing users to perform what-if scenarios to determine their estimated tax liability. Users simply need to step through the TaxACT interview entering their forecasted income and deductions for the tax year by answering simple questions in layman s terms. TaxACT simultaneously calculates your projected tax with the regular tax system and the AMT system based on the taxpayer s tax bracket and the most recent tax information available. Behrends continues, TaxACT Preview provides valuable forecasting information. TaxACT Preview will compute the AMT and limit tax credits as appropriate based on the 2007 draft version of Form 6251 Alternative Minimum Tax for Individuals (the amount if Congress doesn t pass an extension) to show the full impact of the AMT; or, estimates can be based on the 2006 Form 6251 instructions (assuming Congress enacts the same 24 TaxACT 2007 Press Kit 25

15 TaxACT Press Releases temporary patch to AMT as last year). Visitors need only to complete the site s free online registration to gain access to TaxACT s Online Deluxe Preview version at com to generate a forecasted federal and state income tax refund or liability amount providing users with valuable insight into their tax situation. Once the Final version of TaxACT releases in early January 2008, users can easily finalize their tax return and print and/ or e-file their federal tax return for just $9.95. About TaxACT As a trusted and secure source for tax preparation and electronic filing services for millions of taxpayers, TaxACT.com is the only Web-based tax planning and preparation solution to offer taxpayers a year-round solution. TaxACT is the pioneer of totally free federal taxpreparation software and online services. Dedicated to providing consumers with a complete Webbased tax resource for a decade, TaxACTOnline.com is the 2nd most visited online destination for tax preparation services. (1) Designed to make preparing taxes electronically possible for everyone for little to no-cost, TaxACT was the first to offer free federal electronic tax preparation, printing and electronic filing services directly to all American taxpayers. About 2nd Story Software, Inc. 2nd Story Software, a privately held company founded in 1998, is critically acclaimed as being a leader in developing and marketing affordable tax preparation software and Web-based services directly to consumers. The comprehensive suite of TaxACT products continues to empower its users to devise well-informed tax strategies with ease, while looking out for the cost-conscious. More information regarding 2nd Story and the TaxACT product line may be found by visiting (1) According to collective week end-reports released by Hitwise during the 2004, 2005, 2006 primary tax seasons, TaxACT Online ranked second in the percentage of traffic it received as compared to other monitored Web-based tax preparation services. More information regarding Hitwise may be viewed by visiting 2nd Story Software, Inc., company and product logos, TaxACT and TaxACT Online, among others, are registered trademarks of 2nd Story Software. Other party trademarks or service marks are the property of their respective owners and should be treated as such. TaxACT Company Summary TaxACT Overview: Dedicated to providing consumers with webbased tax resources for a decade, TaxACT is America s value-leader in tax preparation software and consumer services. TaxACT is the nation s pioneer and trusted leader of free e-filing services directly to consumers. 2nd Story Software Overview: Founded in 1998, 2nd Story Software is a privately held company and the pioneer and a leader in developing & marketing affordable tax preparation software and Web-based services directly to consumers. During March 2005, 2nd Story completed an $85 million recapitalization with TA Associates, a leading Boston-based, private equity firm. Online Product Offerings: TaxACT Online Standard FREE over-the-web tax service. Users can prepare, print and e-file one (1) Federal return at no-cost. TaxACT Online Deluxe $9.95 over-the-web tax service. This premium service provides advanced planning and convenience features, as well as one (1) free Federal e-file. TaxACT Online Ultimate Bundle $16.95 over-the-web tax service including TaxACT Online Deluxe and TaxACT Online 1040 State for one low price. Also included: one (1) free Federal and one (1) State e-file. TaxACT Online State 1040 $13.95 over-the-web TaxACT 1040 State software. Also included: one (1) free state e-file. 26 TaxACT 2007 Press Kit 27

16 TaxACT Company Summary Desktop Product Offerings: TaxACT Standard Free Federal tax software download. Users can prepare, print and e-file one (1) Federal return at no-cost. TaxACT Deluxe $12.95 Federal tax software download. Provides advanced planning and convenience features, as well as one (1) free Federal e-file. TaxACT Ultimate Bundle $19.95 software download including TaxACT Deluxe and TaxACT 1040 State. Also included: one (1) free Federal e-file. TaxACT State 1040 $13.95 TaxACT State 1040 software download. TaxACT Contact Us "This was my first time using TaxACTOnline.com, and I was very pleased with the process. It was easy and quick. It only took 10 days & my refund is already in my account. I would recommend TaxACT to anyone!" Francine S. Wolcott, CT Media RELATIONS CONTACT: Stephanie Behrends Public Relations Manager Company President: Phone: (319) Sales & Support Information: 2ND STORY SOFTWARE Lance Dunn Lance Dunn joined 2nd Story Software, Inc., in 1998 as President. As a veteran of the financial software industry, Dunn came to 2nd Story from Parsons Technology, a softwaredevelopment company, where he served as Vice President of Software Development for the finance, reference and utility units. A Certified Public Accountant since 1985 and former Senior Tax Analyst with Ernst & Young, Dunn is an expert in tax preparation and played an integral role in bringing 2nd Story Software s turn-key product, TaxACT, to the forefront of the tax software industry. Dunn, his wife and two children live in Cedar Rapids, Iowa, where he is an active member of the community. He serves as a member of the Iowa Society of CPA s as well as the Entrepreneurial Development Center Advisory Board of Cedar Rapids. Dunn earned his bachelor s degree in business administration and accounting from Coe College in Cedar Rapids. Fax: (319) stephanieb@taxact.com Sales Line: (800) Sales Fax: (319) Support Line: (319) support@taxact.com 5925 Dry Creek Lane NE Cedar Rapids IA TaxACT 2007 Press Kit 29

17 2ND STORY SOFTWARE 5925 Dry Creek Lane NE Cedar Rapids IA Copyright nd Story Software, Inc. All rights reserved.