I don't se any news to justify this big drop. Especially today. The stock has been drifting to new lows for a few sessions. Today it really dropped and the volume was high. Nothing on the message board over there but spam.
If the p/e ratio gets any lower I might buy some myself. I don't see any scenario where Hewitt won't make the company more valuable so he can monetize some of his own shares at some point. Profits going up. No financial stress I can see. I think the appetite for tax prep stocks is depressed in general until the market sees what trend is going to emerge with the economic situation going forward.
More than likely it was a reaction to the news that Liberty has filed to break the agreement with Republic Bank. For people not involved in the industry and understanding how it is changing, it was seen as a sign of weakness instead of strength. TAX is also a very low volume stock so it may have triggered so preset sell orders as well.
Personally I think it is good buy at these prices but you want to make sure to use limit prices and not market ones as a low volume stock can do some weird things when you use market pricing.
Interestingly Republic only dropped 2% on the news when it will have a far bigger impact on their financials than it will on Liberty's.