John Hewitt (tax preparation entrepreneur)
Encyclopedia
John T. Hewitt is a U.S. entrepreneur, the co-founder of Jackson Hewitt
and sole founder of Liberty Tax Service
. As of late 2006 Hewitt served as CEO, chairman of the board
and president
of the latter. Together these companies account for more than 9,000 tax preparation offices in the U.S. and Canada
. In addition, John Hewitt was a pioneer in the development and use of specialized tax-preparation software, which is now the industry's standard practice.
. Finding the topic quite interesting, he subsequently obtained employment with that company as a tax preparer. He would rise quickly within the organization, reaching the rank of regional director by 1980.
Hewitt perceived a need for technological innovation within the tax industry and he left H&R Block in order to pursue that opportunity. Working alongside his father, he pioneered the development of decision-free tax-preparation software. However, H&R Block was not interested in this new way of doing business. This led Hewitt to found a tax-preparation service that would exploit the efficiency of the new technology.
in the United States.
By 1992 Jackson Hewitt was one of the fastest growing private companies in the United States, according to Inc. Magazine, attaining a secure second-place ranking in its industry. The company became public in 1994, and was sold for $483 million in 1997, by which time it was operating 1,345 offices.
ually barred from competing with it until 2000 in most of the United States. However, he decided to launch a new company which would be the vehicle for yet further innovations, Liberty Tax Service. In order not to infringe the terms of the contract with the purchasers of Jackson Hewitt, the new company initially restricted its operations to Canada
. Liberty Tax Service was launched there when Hewitt purchased a local tax company on September 1, 1997.
The new concern soon achieved a large measure of success; its more than 3,000 offices in North America
as of 2009 make it the fastest-growing major tax-preparation company in history, and put it on pace to eventually equate or overtake its older competitors. Liberty Tax Service is best known for the costumed "wavers" dressed as the Statue of Liberty used in front of the offices across the country.
Liberty Tax Service is perennially ranked in the Entrepreneur magazine ranking of the country's most successful franchises, appearing in third place in 2009.
Jackson Hewitt
Jackson Hewitt Tax Service Inc. is the second largest tax preparation service in the United States; responsible for preparing over 2.2 million computerized federal, state, and local individual income tax returns each year. Based in Parsippany, New Jersey, the company currently operates more than...
and sole founder of Liberty Tax Service
Liberty Tax Service
Liberty Tax Service is a United States-based company specializing in the preparation of tax returns for individuals and small businesses. The company began in Canada in 1997 when John Hewitt, co-founder of Jackson Hewitt, acquired a Canadian tax franchisor, U&R Tax Depot. In 1998 the company...
. As of late 2006 Hewitt served as CEO, chairman of the board
Chairman of the Board
The Chairman of the Board is a seat of office in an organization, especially of corporations.Chairman of the Board may also refer to:*Chairman of the Board , a 1998 film*Chairmen of the Board , a 1970s American soul music group...
and president
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
of the latter. Together these companies account for more than 9,000 tax preparation offices in the U.S. and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. In addition, John Hewitt was a pioneer in the development and use of specialized tax-preparation software, which is now the industry's standard practice.
Early career
Hewitt began his career in 1969, while still a student at the University of Buffalo, by attending a tax-preparation course offered by H&R BlockH&R Block
H&R Block is a tax preparation company in the United States, claiming more than 22 million customers worldwide, with offices in Canada, Australia and the United Kingdom. The Kansas City-based company also offers banking, personal finance and business consulting services.Founded in 1955 by brothers...
. Finding the topic quite interesting, he subsequently obtained employment with that company as a tax preparer. He would rise quickly within the organization, reaching the rank of regional director by 1980.
Hewitt perceived a need for technological innovation within the tax industry and he left H&R Block in order to pursue that opportunity. Working alongside his father, he pioneered the development of decision-free tax-preparation software. However, H&R Block was not interested in this new way of doing business. This led Hewitt to found a tax-preparation service that would exploit the efficiency of the new technology.
Co-founder of Jackson Hewitt
That goal would materialize in 1982 in Hampton Roads, Virginia after Hewitt and other investors acquired the six offices of a local tax-preparation company, Mel Jackson Tax Service and launched the "Hewtax" interview program the first of its kind in the industry. Hewitt developed the software with his father Daniel. In 1988, the company changed its name to Jackson Hewitt. By 1986, IRS personnel also began seeing the advantages of computerized filings. That year the IRS tested the electronic filing process, allowing taxpayers to directly file their taxes and bypass the mailing of returns entirely. As a leader in using technology to facilitate tax filings, Jackson Hewitt benefited considerably. Also in 1986, Jackson Hewitt began offering franchisesFranchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
in the United States.
By 1992 Jackson Hewitt was one of the fastest growing private companies in the United States, according to Inc. Magazine, attaining a secure second-place ranking in its industry. The company became public in 1994, and was sold for $483 million in 1997, by which time it was operating 1,345 offices.
Liberty Tax Service
Having left Jackson Hewitt at the time of its acquisition, John Hewitt was contractContract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
ually barred from competing with it until 2000 in most of the United States. However, he decided to launch a new company which would be the vehicle for yet further innovations, Liberty Tax Service. In order not to infringe the terms of the contract with the purchasers of Jackson Hewitt, the new company initially restricted its operations to Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. Liberty Tax Service was launched there when Hewitt purchased a local tax company on September 1, 1997.
The new concern soon achieved a large measure of success; its more than 3,000 offices in North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
as of 2009 make it the fastest-growing major tax-preparation company in history, and put it on pace to eventually equate or overtake its older competitors. Liberty Tax Service is best known for the costumed "wavers" dressed as the Statue of Liberty used in front of the offices across the country.
Liberty Tax Service is perennially ranked in the Entrepreneur magazine ranking of the country's most successful franchises, appearing in third place in 2009.
Honors and awards
- International Franchise AssociationInternational Franchise AssociationThe International Franchise Association is the world's oldest and largest organization representing franchising. Founded in 1960, it is a Washington, DC based trade group and non-profit association that represents a growing membership of more than 1,300 franchise systems, 10,000-plus franchisees...
Entrepreneur of the Year (2006) - Accounting TodayAccounting TodayAccounting Today is a trade magazine servicing the public accounting profession in the United States. Started in 1987, it quickly grew to a circulation of more than 30,000. The parent company of Accounting Today is SourceMedia. With just under 800 employees Source Media is the publisher of more...
Top 100 Most Influential People (2000-2006) - Ernst & YoungErnst & YoungErnst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....
Virginia Entrepreneur of the Year (2003)