Wednesday
March 22, 8:05 am Eastern Time
Company Press Release
Majority of Americans Comfortable With
E-Filing According to New Survey by H.D. Vest
Acceptance of E-Filing Gives Rise to
Increased Comfort with Web Preparation
IRVING,
Texas--(BUSINESS WIRE)--March 22, 2000--Americans are catching on to the
e-filing craze more swiftly than expected this year. Over half the
country says that they would be comfortable e-filing their tax returns.
This, according to a survey conducted in January by H.D. Vest Financial
Services, Inc., the country's largest provider of financial products and
services delivered through tax professionals. This is good news for the
Internal Revenue Service, as it falls in line with the congressional
mandate that 80 percent of all tax returns be e-filed by the year 2007.
Fifty-four percent of
American taxpayers (65 million) say that they would be comfortable
filing their tax returns electronically - more than twice the number
that actually e-filed their tax returns last year (30 million). An
almost identical proportion expressed the same level of comfort in
receiving their refunds electronically.
How Comfortable Would You Be Filing Tax Returns Electronically?
Very Comfortable 35%
Somewhat Comfortable 19%
Uncomfortable 36%
Neither 6%
Don't Know/Refused 4%
Not surprisingly,
younger Americans in particular are more likely to e-file their tax
returns (and receive refunds electronically) than are citizens age 65
and older who are significantly less comfortable with e-filing. The
nation's elderly are also uncomfortable with receiving a refund
electronically -- in spite of the fact that many have already been
receiving direct deposit of their Social Security payments
electronically.
Respondents Comfortable With Electronic Technology and Taxes
(Respondents Answering "Very Comfortable" or "Somewhat Comfortable")
By Age
18 to 34 35 to 44 45 to 54 55 to 64 65 and older
------- -------- -------- -------- --------- ------------
Filing 63% 63% 57% 49% 31%
Receiving Refund 62% 66% 58% 48% 39%
Web-prepared Tax Returns Gain
Acceptance Alongside Growing Comfort With E-filing
Along with the rising comfort
level and acceptance of e-filing, the survey also showed consumers'
growing comfort with Web-prepared tax returns. Of the approximately 50
million do-it-yourselfers who prepare their own tax returns each year,
10 million (20 percent) said that they would now be comfortable
preparing their taxes online.
Again, there are significant
differences between the various age groups of Americans. Younger
Americans, particularly those under age 35, are most likely to say that
they would prepare their taxes on the Internet. The study also found
that men are much more willing than women to use the Internet for tax
preparation and e-filing.
Would You Prepare Taxes On the Internet?
By Age
18 to 34 35 to 44 45 to 54 55 to 64 65 and older
------ -------- -------- -------- -------- ------------
Yes 33% 16% 24% 8% 10%
------ -------- -------- -------- -------- ------------
Would You Prepare Taxes On the Internet?
By Gender
Male Female
---------- --------- ------------
Yes 26% 16%
---------- --------- ------------
H.D. Vest Offers an Easy, Safe
and Free Way for Consumers to Prepare and E-file Their Tax Returns
Americans now have a new, safe,
and easy way to complete and file their income tax returns completely
free - no matter what their salary is or what forms need to be filed.
H.D. Vest Technology Services, a wholly owned subsidiary of H.D. Vest,
Inc., is offering consumers the opportunity to Web-prepare and e-file
their tax returns for free via www.hdvest.com.
The site offers most federal and state tax return forms. Once the return
is completed, the consumer can elect to either e-file it or print it out
-both options are free of charge.
Security is a major concern for
many of those considering electronic tax return preparation and
e-filing. H.D. Vest has made security a top priority with a state-of-the
art security system and site protection that ensure that the consumer's
tax return and other confidential information cannot be viewed by anyone
other than the consumer. Each user who initially begins work on a tax
return is issued a password. At no time will the consumer's tax return
be available to H.D. Vest affiliates or employees without the consumer's
consent. In fact, consumers desiring to take advantage of H.D. Vest's
other products and services must initiate the first contact with an H.D.
Vest Online Affiliate. Help is available to hdvest.com users via
Frequently Asked Questions, Tax and Investment Tips and 24-hour Online
Technical Support.
``We recognize that security of
financial information is the number one barrier people have to preparing
their income tax returns via the Internet,'' said Herb D. Vest, CPA,
chairman and CEO of H.D. Vest, Inc. ``That's why we have made security
our number one priority at www.hdvest.com so that we can help to
reassure Americans that e-filing and online tax preparation is secure,
private, easy, and the wave of the future.''
In addition to being awarded
the Better Business Bureau's BBBonline Privacy Seal, the H.D. Vest Web
site is the only tax return preparation Web site to qualify for the CPA
Webtrust Seal from the American Institute of Certified Public
Accountants, both attesting to the site's procedures regarding privacy
and security. The CPA Webtrust Seal certifies that www.hdvest.com
maintains effective controls and practices to address privacy and
security matters, such as: encryption of private customer information
and protection of information once it reaches the site. Additionally,
after rigorous testing of www.hdvest.com to ensure accuracy and
security, the Internal Revenue Service has named H.D. Vest an Authorized
IRS e-file Partner. This designation is part of the IRS's ongoing
program to bring taxpayers affordable, convenient, and user-friendly
e-filing options. In a separate audit, an independent certified public
accounting firm, Leach Consulting and Accounting, CPAs, has attested to
H.D. Vest Online's voluntary compliance with the Internal Revenue
Service's standards of security as set forth in OMB 1545-0962 tax
information security guidelines for federal, state and local agencies.
About
H.D. Vest, Inc.
Headquartered in Irving, Texas,
H.D. Vest, Inc. (d/b/a H.D. Vest Financial Services) is the leader in
the growing market for comprehensive financial services. Through a
network of 8,000 affiliates, H.D. Vest manages over $16 billion in
assets for individuals, families, and small businesses in all 50 states.
The company's Web site, www.hdvest.com, enables consumers to prepare and
e-file their tax returns for free, regardless of income. Taxpayers with
broadband access can have their return prepared by an Enrolled Agent or
Certified Public Accountant online using OnVESTsm, H.D. Vest's online
proprietary Web conferencing service. The Web site, hdvest.com, is part
of an e-commerce portal being developed by the company that will offer
customized products and services, both financial and non-financial.
Consumers can access the full range of H.D. Vest's product and service
offerings via Internet, telephone, Web conferencing, or personal
contact. H.D. Vest, Inc.'s common stock trades on The Nasdaq Stock
Market under the symbol HDVS.
Securities offered through
H.D.
Vest Investment Securities, Inc. Member: SIPC, 6333 N. State Highway
161, Suite 400, Irving, TX 75038 (972) 870-6000.
Methodology of Survey
One thousand fifteen adults, 18
years and older were interviewed by telephone between January 4 and
January 9, 2000. Five hundred eleven women and 544 men participated in
this study. ICR Survey Research Group of Media, Pennsylvania,
using computer-assisted telephone interviewing, conducted all the
interviews. The interviewing is based on a random digit dialed sample of
all telephone households in the continental United States. This sampling
procedure provides an equal probability of selection for each and every
telephone household. Thus, the sample represents telephone households
with both listed and unlisted numbers in their correct proportions. The
final data is statistically weighted to ensure that all adults are
represented in their correct proportions in the sample according to key
demographic variables (e.g., sex, age, and region).
Safe Harbor Statement under the
Private Securities Litigation Reform Act of 1995: The statements
contained herein which are not historical fact are forward-looking
statements that are subject to risks and uncertainties that could cause
actual results to differ materially from those expressed in the
forward-looking statements, including, but not limited to, certain
delays in development, deployment and market acceptance of products,
services and technologies and other risks detailed from time to time in
H.D. Vest's filings with the Securities & Exchange Commission.
Contact:
Ogilvy Public Relations
Nancy Lessuk, 212/880-5386
nancy.anne.lessuk@ogilvypr.com
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