Tax ID Fraud May Be Boon for H&R Block (HRB), JTH Holdings (JTH) Others
Tweet
Share
E-mailGet Alerts HRB Hot Sheet
Price: $46.74 -2.48%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.5%
EPS Growth %: +14.8%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.5%
EPS Growth %: +14.8%
Join SI Premium – FREE
As the 2012 tax reporting season gets underway, investors looking to capitalize on gains might be in for a treat.
Over the last few years, more and more Americans have eschewed traditional routes of tax prep via and face-to-face meeting with an advisor, instead opting to file taxes via a PC program. The move has left names like H&A Block (NYSE: HRB), JTH Holding (NYSE: TAX), Jackson Hewett (OTCBB: JHTXQ), and others out to dry.
But, those names might be poised for more upside if recent headlines have anything to say about it. CNBC reported earlier that tax identity fraud is escalating. The IRS reported 47,730 incidents in 2008 where a filers IS was misused, with that number escalating to 242,142 in 2011. About 641,690 incidents were reported through the first three quarters of 2012, data show.
An inspector for the Treasury Inspector General for Tax Administration (TIGTA) said the problem is with the IRS and it has to do with funding and bureaucracy.
The IRS is working to combat fraud, with the latest round including several "filters" to better identify fraudulent returns.
Despite the efforts by the IRS, those increasing numbers might be enough for folks to take out a little time and put tax filing back into the hands of traditional preparers, opting for returns to be mailed in versus being sent over the Internet.
Shares of tax prep companies are positive on the session Monday.
Over the last few years, more and more Americans have eschewed traditional routes of tax prep via and face-to-face meeting with an advisor, instead opting to file taxes via a PC program. The move has left names like H&A Block (NYSE: HRB), JTH Holding (NYSE: TAX), Jackson Hewett (OTCBB: JHTXQ), and others out to dry.
But, those names might be poised for more upside if recent headlines have anything to say about it. CNBC reported earlier that tax identity fraud is escalating. The IRS reported 47,730 incidents in 2008 where a filers IS was misused, with that number escalating to 242,142 in 2011. About 641,690 incidents were reported through the first three quarters of 2012, data show.
An inspector for the Treasury Inspector General for Tax Administration (TIGTA) said the problem is with the IRS and it has to do with funding and bureaucracy.
The IRS is working to combat fraud, with the latest round including several "filters" to better identify fraudulent returns.
Despite the efforts by the IRS, those increasing numbers might be enough for folks to take out a little time and put tax filing back into the hands of traditional preparers, opting for returns to be mailed in versus being sent over the Internet.
Shares of tax prep companies are positive on the session Monday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition
- Microsoft earnings: Will AI help Azure cloud revenue soar?
- Buy earnings selloff in this chip stock - Citi
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
