Tracy, CA--(Business Wire)--October 25, 2005-- TaxBrain.com, (http://www.taxbrain.com) is admonishing the President's Advisory Panel for Federal Tax Reform for completely missing the target of simplifying taxes by looking in the wrong direction.

"Reforming The tax code to make it simpler and fairer is a noble goal," said Craig I. Petz, Vice President of Petz Enterprises, Inc., (http://www.petzent.com), whose online tax preparation brand TaxBrain.com® is the fastest growing tax service in the U.S. "Historically, however, tinkering with the code has not produced the desired results," he said.

IN A HOLE? STOP DIGGING!

Mr. Petz suggested, "The first step in simplification is to stop the endless tinkering that results in late changes and even retroactive modifications. The first proposal should be for a rule prohibiting tax code changes after the start of the tax year. All the regulations regarding a given tax year should be locked in by January 1st. This would force the legislature and administration to focus on meaningful modifications and reduce the urge to tinker for short-term political gains.

"By enacting such a rule, taxpayers would know the rules of the game have time to adjust to changes before they actually have to file their return," Mr. Petz continued. "This not only simplifies tax return preparation - whether done individually or by professionals - it protects the smallest taxpayer from the complexities of the tax code, since they are the least able to deal with never-ending changes.

"Taxpayers in the highest brackets will continue to have professional assistance - but the guy at the bottom of the scale will benefit by having less uncertainty, and a reduced risk caused by uncertainty," he said.

TECHNOLOGY HELPS, TOO

"The role of technology in tax compliance is also being ignored by the President's Panel," said Mr. Petz. "Despite the fact that more than 80% of tax returns are prepared on computers, the IRS continues to shoehorn paper forms into its electronic format. We would strongly urge the panel to flip that paradigm and gear tax processing to electronic formats first with paper provided as a secondary alternative," he stated.

"The private sector has already embraced this fundamental change, but tax authorities still labor under the illusion that we are living in the 1960s. Bottom line - stop moving the target and focus on enabling technology. In the end the underlying tax code changes will manifest themselves as mechanisms that embrace the reality of the new model," Mr. Petz concluded.

About TaxBrain.com®

TaxBrain.com is the only web-based tax solution delivering online preparation, filing, professional assistance and representation in all 50 states. TaxBrain.com 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.