Increasingly complicated rebate schemes make boxed tax software more expensive and time consuming than doing your taxes directly via www.taxbrain.com. (Photo: Business Wire)

TRACY, Calif.--(Business Wire)--Mar. 17, 2005--From the millions of dollars being spent advertising tax software packages, one might think this is the only alternative to doing your taxes on the kitchen table with pencil and paper.

However, there is more to the story. In fact, doing your taxes online is rapidly becoming the preferred method, and is coming at the expense of those heavily advertised software packages.

Leroy E. Petz, Sr. TaxBrain.com president said, "With just a month to go before the April 15th filing deadline, we have 50% more users than the same period last year. Taxpayers have been learning that doing their taxes online is not only quick and easy; it's the fastest way to get a refund. By specifying direct deposit, the refund appears in the taxpayer's account in as little as two days, which is the greatest incentive to online preparation and filing.

"As anyone who has stood in a check-out line at the local office supplies store knows, purchasing anything at retail can be a tedious, time-consuming chore. When buying boxed tax software, the experience borders on the excruciating. Getting to the register is bad enough - but dealing with the rebate receipt - that long streamer of contradictory and confusing information - can make it seem like the effort simply wasn't worth it," he said.

"Let's contrast the retail situation with online," says Eric Hayes, TaxBrain.com Senior Tax Analyst. "From anywhere, any time, the taxpayers simply access www.taxbrain.com. The friendly, easy interface prompts the user through every step. If the return is a 1040EZ or straightforward 1040, then the process shouldn't take more than 40 minutes. If a question arises, the taxpayer simply pushes a button, and chats directly with a qualified tax professional. TaxBrain.com features instant messaging, making the procedure even faster.

"But what about taxpayers with more complicated returns, such as small business owners? Good news, here, too," continued Mr. Hayes. "First, TaxBrain.com creates a permanent account that the small business person can access all through year, so at tax time, the system is completely ready to go, and preparation is held to the minimum. Because the software development experts at Taxbrain.com have developed the best professional-level software in the industry, in essence the business taxpayer gets the same - or better - level of expertise as a third-party preparer. Compared to the local walk-in tax office, the combination of sophistication and ease-of-use give online preparation a significant edge."

Finally, comparing boxed tax software to an online system such as TaxBrain.com dramatically shows that online is better. As long as Internet access is available, there are no compatibility issues. Also, the online tax filer does not have to sift through a variety of options, ranging from "basic" to "premium" to get what is necessary to file-and-forget. In many cases, efiling delivers the refund well before it is expected.

Is online tax preparation and filing replacing the pencil and paper? Not yet. But more than 10 million tax returns will be e-filed in the 2004/05 season. As of the first week in March 2005, do-it-yourself on-line filings are up 14.4 percent, generating $87 billion in refunds via direct deposit. And tax experts know that the month of March is usually the quietest period of the season.

This year as April 15th looms into view, the annual last-minute crunch will be a lot less stressful. The last minute lines at the post office will be shorter, and hopefully the breathless TV coverage will be subdued. If so, it will be because millions of taxpayers have gone online to file and get their refunds. It's simply the best way.

About TaxBrain® Online Tax Service

TaxBrain Online is the only web-based tax solution delivering online preparation, filing, professional assistance and representation in all 50 states. TaxBrain is a full-service online tax center providing tax advice, tools, and resources all year to help taxpayers manage their tax burden with greater confidence and ease. For more information visit www.taxbrain.com/press.

About Petz Enterprises, Inc.

Petz Enterprises, Inc. (a closely-held California corporation) is a software development company and a leading provider of tax preparation and filing solutions for the professional and consumer markets, helping to automate and simplify federal, state and local tax compliance. PEI's Crosslink® line of professional tax software products enable tax practitioners and service bureaus to accurately prepare and file large volumes of individual tax returns. Founded in 1974, Tracy, CA-based PEI is dedicated to serving the needs of the professional tax community and individual taxpayers worldwide. For more information, visit http://www.petzent.com.