Taxing Times for Jackson Hewitt

It’s like chocolate suppliers cutting off the supply of hearts to card stores ahead of Valentine’s Day, but Jackson Hewitt Tax Service (JTX) is off sharply after its supplier of refund-anticipation loans, a unit of Pacific Capital Bancorp (PCBC), said it will provide just half of tax-preparer’s loans this year.

Tax-prep outfits, which tend to cater to less-financially-savvy consumers, find it very profitable to advance them their expected tax refunds. Think about it, getting a refund means you’re giving Uncle Sam an interest-free loan; then you pay interest to get the money back a couple of weeks early.

Meantime, Intuit (INTU), the maker of TurboTax software, trades is on the 52-week high list again (even without any endorsement from Tim Geithner.) And H&R Block (HRB) said it will open an office in New York City’s Times Square Thursday featuring a giant “smart wall” that “guides clients through an interactive tax experience.” Kinda makes you nostalgic for Times Square before they cleaned out the hookers and drug dealers. — Randall W. Forsyth

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