Jackson Hewitt's week is equally as crucial with one. In fact, one equity analyst, Bob Mowry of Underanalyzed Equities Research, posted an article with "Seeking Alpha, an online publication, in which he stated "Put plainly, JH is on the verge of bankruptcy."

Whatever the possibility, the company faces a Friday, November 19, deadline for informing its lenders about how it will fund 100 percent of its RAL program. During the last tax season, the chain was able to get backing for only 50 percent of its loans by Republic Bank. That came after Santa Barbara Bank & Trust was forced from the refund loan business by regulators.

The inability to provide loans at half of its locations seriously hurt Jackson Hewitt's tax preparation business as consumers went elsewhere seeking RALs. Under the terms of a new credit agreement, the company must provide lenders with a written statement about the sources for funding all of the program for the 2011 tax season. It already has a commitment for Republic to provide loans at the same number of locations for the upcoming season.

Bob Scott

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Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind