Liberty Tax franchise parent company has issued a press release admitting that it’s received a NASDAQ notice charging the tax software chain with a notice of non-compliance with its listing rules.
Here’s the JTH Holding, Inc. (NASDAQ: TAX) press release issued August 21, 2013:
JTH Holding, Inc. Receives NASDAQ Notice of Non-Compliance With Listing Rules
VIRGINIA BEACH, VA–(Marketwired – Aug 21, 2013) – JTH Holding, Inc. (NASDAQ: TAX), the parent company of Liberty Tax Service, announced today that it has received a letter from the NASDAQ Stock Market LLC (NASDAQ) indicating the Company was not in compliance with the continued listing requirements under NASDAQ Listing Rule 5250(c)(1). The Company anticipated the letter given that it has not completed its previously announced restatements of prior financial statements necessary in order to file its Annual Report on Form 10-K for the year ended April 30, 2013 with the Securities and Exchange Commission (SEC) by the extended August 13, 2013 deadline.
The Company disclosed earlier this month that it would be restating previously issued financial statements because of accounting changes in response to comments received from the staff (the Staff) of the SEC. The Company is working diligently on this matter and intends to file its Annual Report on Form 10-K as soon as practicable. The Company does not anticipate additional Staff comments that will further delay the restatement process or the filing of the Annual Report on Form 10-K, although that filing and the Company’s other filings will remain subject to further SEC review.
The letter states that the Company has been given until October 14, 2013 to submit a plan to regain compliance. The Company believes it will file its Annual Report on Form 10-K and regain compliance prior to the deadline for submitting a plan.
About JTH Holding, Inc.
Founded in 1997 by CEO John T. Hewitt, JTH Holding, Inc. is the parent company of Liberty Tax Service. As the fastest-growing tax preparation franchise, Liberty Tax Service has prepared over 12 million individual income tax returns. Liberty Tax Service also offers an online tax service, eSmart Tax, which enables customers to do their own taxes wherever there’s a computer. eSmart Tax is backed by the tax professionals at Liberty Tax Service and its nationwide network of over 30,000 tax preparers, ready to offer their assistance at any time.
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Beware, beware of eSmart Tax if you're a homeowner (and not a business owner). On their web site they tell you that "Deluxe" service is for those who itemize deductions, which is what most homeowners need. Nearly all homeowners will itemize, and only a small percentage of homeowners are also business owners that would expect to need the "Premium" service, which is between double and triple the cost depending on how early you get started. After you get about 60% done with your taxes, esmart tax insists that you upgrade to "Premium" in order to submit a 1099INT. We have it in writing from their non-American/outsourced customer service that this is not a bug. If you earned interest in a savings account or an escrow account (I believe banks are required to provide a 1099INT for interest income above $10, but you may want to look it up for yourself) esmart tax throws a pop-up that prevents you from completing your taxes unless you pay double or triple the original cost for the "Premium" service (the final cost is supposedly based on how early you start your taxes). To illustrate how ludicrous this is, people with only a savings account who could otherwise file 1040EZ with five minutes effort, frequently have 1099INTs. This is a predatory policy and an example of bait & switch. For shame, esmart tax, your Liberty Tax CEO John Hewitt should be recognized for his lack of civility and non-existent business ethics when it comes to the American homeowner. With just a single log-in, esmart tax service wasted about four hours of precious weekend time. Thanks John, what are your other dubious corporate policies? We're not sticking around to find out. Beware of esmart tax if you are a homeowner and you itemize.