History of Jackson Hewitt in Timeline

Jackson Hewitt Tax Service Inc. is the second largest tax preparation service in the United States, known for preparing over 2 million federal, state, and local income tax returns annually.

1982: Founding of Jackson Hewitt

John Hewitt, along with a group of investors, founded Jackson Hewitt in 1982. They purchased the six-location Mel Jackson's Tax Service, based in Norfolk, Virginia, and renamed it Jackson Hewitt.

1986: Franchise Expansion and IRS Computerized Filing

In 1986, Jackson Hewitt began selling franchises, coinciding with the Internal Revenue Service's first experiment with computerized tax filing. By the next tax season, the company had grown to 22 offices.

October 1989: Partnership with Montgomery Ward and Temporary Closure

In October 1989, Jackson Hewitt partnered with Montgomery Ward to open offices in 169 stores nationwide. Due to rapid growth, the company closed 67 offices to avoid bankruptcy during tax season.

1990: Return to Profitability and Expansion

By the end of 1990, Jackson Hewitt had returned to profitability and resumed opening more locations in Montgomery Ward stores.

1992: Expansion and Second-Largest Tax Preparation Chain

By 1992, Jackson Hewitt operated 515 offices in nearly 30 states and prepared 311,000 tax returns annually, becoming the second-largest tax preparation chain in the United States.

1993: Fundraising, New Headquarters, and Continued Growth

In 1993, Jackson Hewitt raised funds for expansion and relocated its headquarters to Virginia Beach, Virginia. The company reached 900 offices in 37 states by the end of the year.

January 1994: Public Offering, Sam's Club Trial, and Walmart Expansion

In January 1994, Jackson Hewitt went public, converting private shares into public ones. The company also initiated a successful trial of offices in Sam's Club stores and announced plans to open eighteen combined tax preparation and business mail service sites in Walmart stores.

December 1997: Acquisition Announcement by HFS Inc. (Later Cendant Corporation)

In December 1997, Jackson Hewitt announced its upcoming acquisition by HFS Inc. for $480 million. Before finalizing the deal, HFS Inc. merged with another company and became Cendant Corporation, which owned various franchise businesses.

January 1998: Acquisition by Cendant Corporation

In January 1998, Jackson Hewitt was acquired by Cendant Corporation, a consumer conglomerate, for approximately $480 million.

1999: Headquarters Relocation and Acquisition of Tax Preparation Offices

Following the 1999 tax season, Jackson Hewitt moved its headquarters to Cendant's location in Parsippany, New Jersey. The company also began acquiring independent tax preparation offices through its largest franchisee, Tax Services of America.

2001: Kmart Expansion, MasterCard Cash Cards, and Premier Tax Service

In 2001, Jackson Hewitt expanded by opening offices in Kmart stores. The company introduced MasterCard cash cards for easier access to accelerated refund accounts and launched a Premier Tax Service for complex returns. Some locations also added ATMs for on-site refund check cashing. They continued to acquire independent tax-service businesses and had over 3,300 offices, owned by 600 franchisees.

2004: Spin-off as a Separate Company

In 2004, Jackson Hewitt Tax Service Inc. was spun off from Cendant Corporation and became a separate company.

2005: Launch of ESS Scan System

In 2005, Jackson Hewitt introduced its ESS scan system, allowing paperless uploads of customer documents to its secure server.

2008: Business Segments and Franchise Operations

In 2008, Jackson Hewitt operated two business segments: franchise operations and company-owned income tax return preparation offices. The company had company-owned offices in 28 U.S. markets and 5,763 franchised offices, which prepared 87% of the total tax returns within its network.

2008: Partnership with Magic Johnson Foundation

In 2008, Jackson Hewitt partnered with the Magic Johnson Foundation to establish Community Empowerment Centers. These centers provided comprehensive tax information seminars, financial educational resources, and free access to the Jackson Hewitt Money Manager, a web-based home budgeting tool.

May 2009: Debt Negotiation

In May 2009, Jackson Hewitt successfully negotiated its debt obligations.

May 2010: Technical Default and Creditor Agreement

In May 2010, Jackson Hewitt experienced a brief technical default on its debt but reached an agreement with creditors within a week.

May 4, 2011: Debt Extension and Consideration of Bankruptcy

On May 4, 2011, Jackson Hewitt secured a twenty-day extension on its debt from Wachovia/Wells Fargo Bank and revealed it was exploring options, including a prepackaged bankruptcy filing.

May 7, 2011: Delisting from New York Stock Exchange

On May 7, 2011, Jackson Hewitt's stock was delisted from the New York Stock Exchange, with a final share price of $0.19.

May 9, 2011: Stock Symbol Change and Trading on a Different Exchange

On May 9, 2011, Jackson Hewitt's stock symbol changed from JTX to JHTX, and trading commenced on a different stock exchange.

May 20, 2011: Debt Extension Expiration

On May 20, 2011, the debt extension granted by Wachovia/Wells Fargo Bank expired, and Jackson Hewitt had not yet filed for bankruptcy or announced another extension.

May 24, 2011: Bankruptcy Filing

Jackson Hewitt officially filed for bankruptcy on May 24, 2011.

August 2011: Privatization and New Leadership

In August 2011, Jackson Hewitt transitioned into a privately held company under the leadership of Philip Sanford as president, chief executive officer, and board member.

2011: Recapitalization by H.I.G. Bayside Capital

H.I.G. Bayside Capital recapitalized Jackson Hewitt in 2011.

2013: Expansion into Sears and Recognition as Fastest Growing Tax Preparation Company

Jackson Hewitt expanded its presence into Sears stores across the U.S. and Puerto Rico. The company was recognized as the second-largest and fastest-growing tax preparation company in America and received the Vendor of the Year award from Walmart.

2014: Partnership with Tax Preparer Solutions for Online Services

In 2014, Jackson Hewitt partnered with Tax Preparer Solutions to offer online federal and state tax preparation and e-filing services through its website.

January 7, 2015: New Brand Logo, Slogan, and Refund Anticipation Loans

On January 7, 2015, Jackson Hewitt launched its new brand logo, slogan "Working hard for the hardest working," and reintroduced refund anticipation loans with 0% interest and no credit check.