Jackson Hewitt
| Company type | Private |
|---|---|
| Industry | Tax preparation |
| Founded | 1982 |
| Founder | John Hewitt and investors |
| Headquarters | Jersey City , United States |
Area served | United States |
Key people | Greg MacFarlane (CEO) |
| Products | Tax preparation services, electronic filing, franchise sales, tax training school |
| Parent | Corsair Capital |
| Website | www |
Jackson Hewitt Tax Service Inc. ranks as the second-largest tax preparation provider in the United States, handling over 2 million federal, state, and local tax returns each year. Its corporate headquarters are situated in Jersey City, New Jersey. The company manages more than 6,000 locations nationwide, comprising both franchised and company-owned offices, with nearly 3,000 of these located inside Walmart stores.
In January 1998, Jackson Hewitt was purchased by the consumer conglomerate Cendant Corporation for around $480 million. The firm was later spun off as an independent company in 2004. Since 2020, under the direction of CEO Greg MacFarlane, Jackson Hewitt has concentrated on growing its presence through franchising and strategic retail collaborations.
Origins
Jackson Hewitt was established in 1982 when John Hewitt and a group of investors acquired Mel Jackson's Tax Service—a small chain with six offices based in Norfolk, Virginia—and rebranded it as Jackson Hewitt. The company’s early development was gradual, steadily increasing its number of locations over time.
Growth
The year 1986 marked the start of Jackson Hewitt’s franchising efforts, coinciding with the IRS’s launch of computerized tax filing. By the following tax season, the company had expanded to 22 offices. In 1989, Montgomery Ward engaged Jackson Hewitt to open 169 in-store tax preparation centers nationwide. Although rapid expansion resulted in the closure of 67 outlets to avoid insolvency, by 1990 the business had returned to profitability and continued to grow within Montgomery Ward stores.
By 1992, Jackson Hewitt operated 515 offices across nearly 30 states, preparing approximately 311,000 returns annually and holding the position as the second-largest tax preparation chain in the country. The company secured funding for further growth and relocated its headquarters to Virginia Beach. By 1993, it had expanded to 900 offices spanning 37 states.
In January 1994, Jackson Hewitt transitioned into a publicly traded company by converting private shares held by roughly 700 investors into public stock without issuing new shares. That same year, it piloted locations within Sam's Club stores and initiated plans to open offices inside Walmart stores, integrating tax services with business mail offerings.
Acquisition by Cendant
In December 1997, HFS Inc. acquired Jackson Hewitt for $480 million; shortly thereafter, HFS merged into Cendant Corporation—a large conglomerate owning franchise brands such as Ramada Inn and Century 21. Under Cendant’s ownership, Jackson Hewitt expanded by adding about 1,000 new offices and launched kiosks within shopping malls and Century 21 real estate agencies.
Following the conclusion of the 1999 tax season, the company relocated its headquarters to Parsippany, New Jersey. Growth continued through acquisitions of independent tax firms facilitated by its largest franchisee, Tax Services of America.
Beginning in 2001, Jackson Hewitt opened locations inside Kmart stores and introduced new offerings like MasterCard cash cards designed to expedite refunds and Premier Tax Service tailored for complex filings. Certain offices provided on-site ATMs enabling customers to cash refund checks immediately. By year-end, the company operated over 3,300 locations with more than 600 franchisees and processed upwards of 2.2 million tax returns annually.
At its peak performance, Jackson Hewitt remained second only in size among U.S. tax preparation companies with roughly 3.4 million returns prepared through an extensive network exceeding 7,400 franchised and company-operated sites—including those situated within Kmart and Walmart stores as well as mall kiosks.
The corporate structure consisted of two primary divisions: franchise operations generating royalty fees along with marketing revenues and financial product income; plus company-owned income tax preparation centers. In 2008, Jackson Hewitt maintained company-owned offices in 28 markets alongside 5,763 franchised locations responsible for completing approximately 87% of all returns processed across its system.
Jackson Hewitt Inc., a fully owned subsidiary of Jackson Hewitt Tax Services Inc., manages these company-operated offices via Tax Services of America.
Also in 2008, Jackson Hewitt collaborated with the Magic Johnson Foundation to launch Community Empowerment Centers that provide complimentary tax workshops and financial literacy programs targeting underserved areas such as Sacramento and Houston. Participants gained access to the Jackson Hewitt Money Manager—a digital budgeting platform designed to assist with personal financial planning.
Default
In May 2009, the company resolved a debt default situation but experienced a brief technical default again in May 2010, lasting several days before reaching a creditor agreement within one week.
On May 4, 2011, the company announced a twenty-day extension on its debt repayment with Wachovia/Wells Fargo Bank while exploring alternatives, including a potential prepackaged bankruptcy. This extension ended on May 20, 2011, without any bankruptcy filing or additional extensions granted.
Jackson Hewitt's shares stopped trading on the New York Stock Exchange as of May 7, 2011, with the closing price at $0.19 per share. Two days later, on May 9, 2011, its ticker symbol changed from JTX to JHTX as it began trading on a different exchange. Subsequently, on May 24, 2011, Jackson Hewitt formally filed for bankruptcy protection.
By August 2011, Jackson Hewitt transitioned to private ownership with Philip Sanford appointed as president, CEO, and member of the board.
Post-2011
In 2011, H.I.G. Bayside Capital recapitalized Jackson Hewitt before selling the company to Corsair Capital in 2018.
Following bankruptcy, Jackson Hewitt re-emerged as the second-largest and fastest-expanding tax preparation service provider in the United States and received Walmart’s Vendor of the Year award. During the 2013 tax season, it broadened its presence by opening locations within Sears stores throughout the U.S. and Puerto Rico. On January 7, 2015, Jackson Hewitt unveiled a refreshed brand identity featuring a new logo and the slogan "Working hard for the hardest working," while also reintroducing refund anticipation loans offering zero percent interest and no credit checks.
Tax-return preparation
Jackson Hewitt provides tax return preparation along with electronic filing services powered by its proprietary software platform, ProFiler. The company facilitates computerized federal and state income tax preparation through its network of physical offices. In 2014, Jackson Hewitt partnered with Tax Preparer Solutions to extend its online federal and state tax preparation and e-filing capabilities via its website, thereby enhancing its digital service portfolio.
Franchise sales
With over 5,763 franchise locations nationwide, Jackson Hewitt requires initial investments ranging from $75,000 to $150,000 per franchise. Franchisees receive approved products along with proprietary software and hardware support through an online Support Center staffed by trained professionals who provide remote assistance via email, chat, and phone. In 2005, the company introduced the ESS scan system to facilitate secure paperless uploading of client documents, significantly improving operational workflows.
Tax School
Jackson Hewitt operates a nationwide "Tax School," offering training both in-person and online through a partnership with the University of Phoenix. As an IRS-Approved Continuing Education Provider, it supports workforce development within the tax preparation sector.