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Taxpayers Flock to Online Tax Prep

HRBlock.com, Taxcut.com and IRS.com Top the Charts

February 16, 2006
Traffic to approximately 29 top tax sites saw a 26 percent spike during the week ending February 5, 2006, compared with the same period a year ago, according to Internet media and market research firm Nielsen//NetRatings.

Eleven percent of the active Internet universe, or 14.1 million unique users, visited tax sites during the first week in February, indicating that a significant portion of Internet users are getting an early start on the 2006 tax season after W-2's were distributed.

The 14.1 million audience number exceeded last year's tax season peak of 12.5 million users during the final deadline week of April 15, 2005, by 13 percent.

The first week in February also saw significant week-over-week growth, with tax sites collectively growing 25 percent.

HRBlock.com led the fastest growing tax sites with an 84 percent jump from 1.3 million to 2.3 million unique visitors. Taxcut.com followed with an 81 percent increase from 519,000 to 937,000 unique visitors. Rounding out the top three was IRS.com, whose 41 percent growth was spurred by 362,000 unique visitors growing to 512,000.

"Traffic to tax Web sites experienced substantial growth during the first week in February, suggesting that people who use online tax resources don't wait until the last minute to tackle their taxes," said Heather Dougherty, senior analyst, Nielsen//NetRatings.

"Financial publications and service providers should take note and optimize their marketing efforts by targeting this group of early-birds on the Web."

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