8/5/2003 - New Tax Reconciliation Act to Affect Millions of Tax Refunds

New Tax Reconciliation Act to Affect Millions of Tax Refunds; TaxBrain Provides Easy-to-Understand Guidance on Why Surprisingly Few Americans Will Qualify for Checks

TRACY, Calif.--(HISPANIC PR WIRE - BUSINESS WIRE)--August 5, 2003--Petz Enterprises, Inc. (PEI) producers of the popular TaxBrain (TM) Online Tax Center (http://www.taxbrain.com), is providing free guidance on newly created tax legislation and how it applies to the average taxpaying family.

Only 19 percent of the 132 million Americans who filed their returns for the 2002 tax year will be entitled to an advanced refund on the basis that they have dependent children and claimed a Child Tax Credit on their tax return.

In May 2003, President Bush signed into law the much-anticipated Jobs and Growth Tax Relief Reconciliation Act of 2003, a law affecting up to 25 million taxpayers expecting advanced refund checks.

However, having children is insufficient qualification for the Child Tax Credit. 81% of America's 132 million tax filers will receive no refunds. To clarify reasons why families still won't qualify for advanced refund checks, TaxBrain have put together the following simple guidelines:

-- Families or individuals can only claim credits on children born no earlier than 1987 and no later than 2002.

-- Children born in 2003 cannot be claimed on for the 2002 tax year.

-- Anyone who completed a form 1040EZ is unable to claim exemptions relating to anybody else in their family, as there is no section on this form to account for this.

-- On line 35 of form 1040, or line 21 of form 1040A, if the Annual Gross Income exceeds $133,000 on a joint husband and wife filed return, no refund check would be payable (on a joint filed return, if the Annual Gross Income is around $130,000 a phase out computation would be applied to determine the amount of the check).

-- If the individual filing is Single or deemed Head of Household and has an Annual Gross Income greater than $98,000, they would not be eligible for the Child Tax Credit.

Size of Refund

The general rule states that qualifying individuals will receive $400 for every qualifying child.

Refund Timetable

The Treasury Department is scheduling three mailings for refund checks: the dates are July 25th, August 1st and August 8th. Individuals who qualify for refunds can expect to receive checks between the first and third week in August, depending on how their social security numbers end. For those currently on extension who qualify, the IRS will issue advance refund checks within six weeks of receiving a tax return.

About TaxBrain(TM)

TaxBrain is a full service online tax center providing tax advice, tools, and resources all year to help taxpayers manage their tax burden with greater confidence and ease. TaxBrain is the only web-based tax solution that delivers online preparation, filing, professional assistance and representation for taxpayers in all 50 states. Launched in 2000, TaxBrain delivers the vision of a fully integrated tax center that accommodates the schedule and needs of the busy American lifestyle. In 2002, TaxBrain emerged as one of the most popular services for online tax preparation and filing available on the web. For more information, visit http://www.taxbrain.com.

About Petz Enterprises, Inc.

Petz Enterprises, Inc. (a closely held California corporation,PEI) is a leading provider of tax preparation and filing solutions for the professional and consumer markets helping to automate and simplify federal, state and local tax compliance. PEI's CrossLink(TM) line of professional tax software products enable tax practitioners and service bureaus to accurately prepare and file large volumes of individual tax returns. Founded in 1974, and based in Tracy, California, PEI is dedicated to serving the needs of professional tax practitioners and individual taxpayers nationwide. For more information, visit http://www.petzent.com.

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