Jackson Hewitt president and CEO Harry W. Buckley tried to reassure investors that the tax prep company has been looking for banks to cover its entire refund anticipation loan business, which took a major hit last tax season when its main partner, Santa Barbara Bank & Trust, was forced by banking regulators to get out of the RAL business.
We are continuing our efforts to achieve 100% RAL (refund anticipation loan) coverage for the 2011 tax season, said Buckley, in announcing the companys fiscal 2011 first quarter results on Wednesday, in which it narrowed its loss compared to the year-ago quarter. "We are working closely with bank providers toward this end, particularly as they take into account the IRS decision to remove the debt indicator beginning in the upcoming tax season. We believe the IRS's decision will likely cause hardship for millions of taxpayers seeking RALs due to fewer approvals, lower loan amounts and higher costs."
Not to mention the hardships that the IRSs decision to remove the debt indicator is going to cause for Jackson Hewitt and its RAL business.