TaxAct

TaxAct operates as a key player in the United States tax preparation software market, providing digital and downloadable solutions for individuals, business owners, and tax professionals. The company was established in 1998 under the name 2nd Story Software by founders Lance Dunn, Cammie Greif, Jerry McConnell, and Alan Sperfslage, who had previously worked at Parsons Technology. Launching a cloud-based version in 2000, TaxAct became the first online software provider to offer free federal tax filing, a significant milestone that has since helped over 90 million filers.

The company's journey includes several significant ownership changes. In 2004, private equity firm TA Associates acquired a majority stake. A planned acquisition by H&R Block in 2010 was blocked by the U.S. Department of Justice due to antitrust concerns. Subsequently, in 2012, the company was sold to Blucora (formerly Infospace, Inc.) for over $287 million and was officially renamed TaxAct Holdings, Inc. in 2013. The most recent change in ownership occurred in November 2022, when the private equity firm Cinven acquired TaxAct for approximately $720 million, with plans to combine its operations with Drake Software under a new holding company.

TaxAct generates revenue through a tiered pricing model for its software and services. While offering a free version for simple federal tax returns, it charges for state filings and more complex return scenarios through its Deluxe, Premier, and Self-Employed packages. These paid tiers accommodate various financial situations, including itemized deductions, investment sales, rental property income, and freelance work. The company also serves tax professionals with dedicated software solutions and offers expert assistance from CPAs and other credentialed agents as an add-on service. Its products are designed to guide users through the tax filing process with features like deduction maximizers, and it supports a comprehensive range of IRS forms and schedules.

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