Jackson Hewitt Tax Service Inc. (fka JHTXQ)

[discoduc555]

Jackson Hewitt says has full assisted refund coverage

http://www.reuters.com/article/idUSTRE6B83P020101209?feedType=RSS&feedName=globalMarketsNews&rpc=43

Thu Dec 9, 2010 10:34am EST

(Reuters) - Jackson Hewitt Tax Service Inc (JTX.N) said it believed it has secured 100 percent assisted refund coverage for the 2011 tax season, sending the no. 2 U.S. tax preparer's shares up 28 percent.

Jackson Hewitt signed a program agreement with Santa Barbara Tax Products Group (TPG) to be the assisted refund provider at some of its tax service locations, it said in a regulatory filing.

Santa Barbara Tax Products provided 50 percent of Jackson Hewitt's assisted refund coverage for the 2010 tax season.

Assisted refunds allow customers to have the tax preparation fees deducted from their refunds and have the remaining amount disbursed either by direct deposit, check or through a prepaid card issued by Jackson Hewitt.

Assisted refunds help tax preparers attract clients who might otherwise not be able to afford their services.

Jackson Hewitt, which competes with larger rival H&R Block Inc (HRB.N), has yet to secure full funding for refund anticipation loan (RAL) program, one of its most profitable products.

Shares of the Parsippany, New Jersey-based company, which have lost more than 80 percent of their value since the funding of its RAL program fell through last December, were up 20 percent at $0.99 in morning trade on Thursday.

They touched a high of $1.05 in early trade on the New York Stock Exchange.