Discussion:ATX Class Action Lawsuit

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Business Growth Community --> ATX Class Action Lawsuit


Tal10 (talk|edits) said:

14 May 2013
Has anyone been approached concerning a class action lawsuit against ATX (CCH)? I'm out tens of thousands in lost productivity (and clients) as a result of their ineptitude. Sorry if this has already been discussed. I would love nothing more than to see this company go bankrupt.

AgwmTax (talk|edits) said:

15 May 2013
You may have better luck getting a partial or full refund! i have not seen any lawsuits filed against CCH for ATX or Redgear for Taxworks, the two software that bombed this year!

CathysTaxes (talk|edits) said:

15 May 2013
But the real winner is TRX. Their TaxExact was a real turkey and I don't believe it ever worked.

Kevinh5 (talk|edits) said:

15 May 2013
Talk with DonnieCastleman, he's still finishing up returns that came in before April 15th.

JackTraffic (talk|edits) said:

17 May 2013
I realize this is the sort of thing my dad would have said, but isn't thinking about your personal damages in a class action lawsuit sort of pointless?

I've accidentally found myself in a series of class action lawsuits over the years (first one some suit having to do with Air West later Hughes Air West... or maybe it was one of the regional airlines that became Air West, I don't know. Most recently, and this was a few years ago, the LP Siding (exterior of my house) headache. Some others inbetween.)

I don't remember even getting any remuneration that was material. (What I do remember was the auditor opinion on the Air West deal, which said the accountants and attorneys would soon deplete the damages fund. I think that had something to do with why I choose accounting in college.)

Here are the rational, optimizing, just responses to the ATX issue IMHO: 1. Those of us who bought ATX 2012 need to find an appropriate replacement. I went with Lacerte but lots of people went with ProSeries or Drake. The wrong still-in-denial choice here is staying with ATX. 2. Make the conversion now so you can do all your training and conversion fiddling during the off season. In my little practice, we're actually doing through the returns we did BEFORE we converted to Lacerte and having the least experienced tax accountants redo them in Lacerte. This will let us generate good, data-rich organizers from Lacerte for everybody in 2013... and it lets people better learn the program we chose. 3. I don't want to be vindictive but I think ATX should be punished for the tax season they put people through. I think this because while ATX is now irrelevant to me, I think we tax practitioners want all the remaining and any new tax software companies, their top managers and their developers to say "Oh geez, and don't ever forget what happened to ATX. DISASTER! We need to make sure we don't ever make that sort of screw up..." I think the little part we can play here is to make sure one participates in the tax software review surveys put out by Journal of Accountancy and so on. (I think I gave ATX a 1, meaning terrible, in pretty much every category because the software just fundamentally failed.)

BTW, I think what ATX should have done is, early on, admitted their failed product release... they released alpha software and then expected people to use what amounted to beta software for tax season. That displayed both a lack of understanding about software development and about tax return preparation.

AgwmTax (talk|edits) said:

17 May 2013
Do you think ATX image is destroyed beyond repair with its users. How many ATX users will renew this year for next year with all the problems they suffered. If the renewals don't happen and ATX is in a money crunch, how long do you think before ATX completely goes away like Taxworks?

JackTraffic (talk|edits) said:

17 May 2013
I would think there's some chance that ATX folds. Like New Coke. Or the Edsel.

They've probably lost some meaningful percentage of their business... I'm just guessing this but say 30%... so now their business won't be profitable anymore.

And then their "new customers in" statistics will implode once the TERRIBLE (and deserved) ATX 2012 software reviews come out.

If they can stay around until after the 2013 product reviews come in (these reviews will be from the 70% or whatever of the clients who stayed with product) the reviews will be better of course. But waiting a year or more? that's a long time in purgatory in the software business.

AgwmTax (talk|edits) said:

17 May 2013
It will be very interesting to read the 2012 tax software reviews. I am told ATX declined to participate in CPA Advisor and another publication.

Generally Drake comes out on top anyways!

Gazoo (talk|edits) said:

20 May 2013
The point of the class action is not to win damages necessarily but to do justice. It's to make the company pay. The last time I joined one I got a check for 35 cents. Not worth driving to the bank to deposit it so I borrowed a stamp from a neighbor and mailed my deposit to the bank.

Try not to use your own stamp or you may end up in the hole on the deal.

ZL28 (talk|edits) said:

23 May 2013
Am i wrong that ATX is not usable on networks with the Raven DB; if so..there goes that percentage of clients.

I'm thinking they'll lose over 50% of their clients.

Just that will send a message to other software providers to have their act together well in advance...and probably prices

eventually will rise as we now have fewer choices of software providers.

AgwmTax (talk|edits) said:

23 May 2013
Taxworks exited the market this year, ATX may go next year and then the remaining software vendors will have less competition and prices will most likely rise a bit. I don't anticipate any new software company jumping in with new products unless they are cloud based computing, which i don't like.

From what I can tell ATX work ok on stand alone computers but if you have a network that does not meet their specifications it will most likely give you lots of problems and I don't think ATX will help you fix them either. So if you run your tax prep business on a network, you got to do some serious homework?

Gscpa (talk|edits) said:

23 May 2013
I received a renewal package from ATX even though I applied for, and received, a refund as their product would not run on my network for 2012. I called and talked to my sales "representative" who told me the network problems were corrected. I asked for a reference of a network user who could support his contention but he couldn't give me one. Instead he was going to have me talk with someone from tech support who, unfortunately, wasn't available that day. He was going to call me back. That was two weeks ago.

Ltea (talk|edits) said:

12 June 2013
If there is a class action, I would love to join it. I did file for a refund in February. Didn't hear anything. Then I sent emails. No response. Then I disputed it with Amex. Nothing. Amex resolved in my favor because ATX never responded to their inquiry. Then I got a collection e-mail, to which I responded, and nothing. Yesterday I received another collection email, and I called. They are saying they never got the info from the form on their website for refund (preferred method of refund request per their instructions). They are telling me that unless I can send them a screen shot of the form I filled out on their website, or a copy of the email I used to request refund, they will take me to collections. They also don't have any of the emails I sent them. Love it, really, just what I needed after a brutal tax season that included switching software on 02/22/13. And here's the real drag, I was actually thinking of trying them again for next year because I used to love the software and was optimistic that they could fix it this summer, but I just can't give a company money that can't even keep track of their own info.

Gazoo (talk|edits) said:

12 June 2013
Meet with your lawyer now. Be ready to hit them with a counterclaim when they sue you for the bill; have the case removed to federal district court!*** Throw the kitchen sink at them. If you join in a class action, you'll get less than pennies on the dollar.


      • Unfortunately, because our federal courts are clogged with stupid drug cases, you'll have to wait for years to get justice, but what's left of your opponent will have to wait too.

AgwmTax (talk|edits) said:

14 June 2013
I seriously doubt a class action suit starting now. If some hungry lawyer was interested they would have done it during the tax season when this issue was hot.

Even if you take them to court and win, all you are going to get if you are lucky is the renewal cost that you paid for the 2012 version. You are not going to get any lost profits etc. After you deduct your legal costs you may be in the red! And ATX knows it too.

Dianakcpa1 (talk|edits) said:

5 July 2013
duplicate question; see Discussion:Software Program‎.

AgwmTax (talk|edits) said:

6 July 2013
I received an e-mail from CCH SFS that says that they have fixed the issues with ATX in their latest version?

CathysTaxes (talk|edits) said:

6 July 2013
I would imagine by now, all of the issues should be fixed with the tax software that experienced meltdowns for 2012 tax season.

AgwmTax (talk|edits) said:

7 July 2013
Those who renew ATX for 2013 should demand a good discount for all their troubles! I would leave if they did not offer any discount!

Gplourde (talk|edits) said:

7 August 2013
Also keep in mind that the company in question may have embedded an arbitration clause into the software terms to preclude people from heading to the nearest Federal Courthouse.

To join in on this discussion, you must first log in.
Personal tools