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  <TITLE> Tier Technologies, Inc. (Form: 8-K) </TITLE>
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  		UNITED STATES<BR>
  	SECURITIES AND EXCHANGE COMMISSION
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  	WASHINGTON, D.C. 20549
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  	FORM 8-K
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  	CURRENT REPORT
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  	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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  	Date of Report (Date of Earliest Event Reported):
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  	&nbsp;
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  	August 24, 2006
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  	Tier Technologies, Inc.
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  <BR>__________________________________________<BR>
  	(Exact name of registrant as specified in its charter)
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  	Delaware
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  	000-23195
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  	94-3145844
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  _____________________<BR>
  	(State or other jurisdiction
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  _____________<BR>
  	(Commission
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  ______________<BR>
  	(I.R.S. Employer
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  	of incorporation)
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  	File Number)
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  	Identification No.)
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  	&nbsp;&nbsp;
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  	10780 Parkridge Blvd., 4th Floor, Reston, Virginia
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  	20191
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  _________________________________<BR>
  	(Address of principal executive offices)
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  	&nbsp;
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  ___________<BR>
  	(Zip Code)
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  	Registrant&#146;s telephone number, including area code:
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  	571-382-1000
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  	Not Applicable
  <BR>______________________________________________<BR>
  	Former name or former address, if changed since last report
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  	&nbsp;
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  <!-- CoverPageRegistrant END --><P><FONT SIZE="2">
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:</FONT>
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  <P><FONT SIZE="2">
  [&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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  	Item 1.01 Entry into a Material Definitive Agreement.
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  On August 24, 2006, the Compensation Committee ("Compensation Committee") of the Board of Directors of Tier Technologies, Inc. (the "Company"), granted options to purchase 40,000 shares of the Company&#x2019;s common stock to the each of the following executive officers:  David E. Fountain, Senior Vice President and Chief Financial Officer;  Steven M. Beckerman, Senior Vice President&#x2014;Government Business Process Outsourcing; Michael A. Lawler, Senior Vice President&#x2014;Electronic Payment Processing; Deanne M. Tully, Vice President General Counsel and Secretary; and Stephen V. Wade&#x2014;Business Development.  In addition, the Compensation Committee granted a total of 147,500 options to 15 other key employees.  The options granted to both the Executive Officers and the 15 other employees were granted with an exercise price of $5.95 per share and will vest over five years.  In the event of the termination of the employment of the employee following a change of control of the Company, the options of that employee will vest immediately as to the number of shares that would be scheduled to vest over the following 18 months.<br>  <br>On August 24, 2006, the Compensation Committee also granted options to purchase 40,000 shares of the Company&#x2019;s common stock to each of the following directors:  Charles W. Berger, Samuel Cabot III, Morgan Guenther, T. Michael Scott, and Bruce Spector, at an exercise price of $5.95 per share.  These options will vest over five years.  In the event of a change of control, all unvested options will vest immediately.<br>
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  	SIGNATURES
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  	Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
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  	Tier Technologies, Inc.
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  <I>
  	August 29, 2006
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  <I>
  	By:
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  <I>
  	David E. Fountain
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  	&nbsp;
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  <I>
  	Name: David E. Fountain
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  <I>
  	Title: Chief Financial Officer
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_14688.htm", "description": "LIVE FILING", "secsgml_size_bytes": 9814}]
metadata_filer: {"company-data": {"conformed-name": "TIER TECHNOLOGIES INC", "cik": "0001045150", "assigned-sic": "7373", "irs-number": "943145844", "state-of-incorporation": "DE", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-23195", "film-number": "061061204"}, "business-address": {"street1": "10780 PARKRIDGE BLVD", "street2": "4TH FLOOR", "city": "RESTON", "state": "VA", "zip": "20191", "phone": "5713821090"}, "mail-address": {"street1": "10780 PARKRIDGE BLVD", "street2": "4TH FLOOR", "city": "RESTON", "state": "VA", "zip": "20191"}}
text: Tier Technologies, Inc. (Form: 8-K)
  UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  Date of Report (Date of Earliest Event Reported):
  August 24, 2006
  Tier Technologies, Inc.
  __________________________________________
  (Exact name of registrant as specified in its charter)
  Delaware
  000-23195
  94-3145844
  _____________________
  (State or other jurisdiction
  _____________
  (Commission
  ______________
  (I.R.S. Employer
  of incorporation)
  File Number)
  Identification No.)
  10780 Parkridge Blvd., 4th Floor, Reston, Virginia
  20191
  _________________________________
  (Address of principal executive offices)
  ___________
  (Zip Code)
  Registrant's telephone number, including area code:
  571-382-1000
  Not Applicable
  ______________________________________________
  Former name or former address, if changed since last report
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:
  [  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Top of the Form
  Item 1.01 Entry into a Material Definitive Agreement.
  On August 24, 2006, the Compensation Committee ("Compensation Committee") of the Board of Directors of Tier Technologies, Inc. (the "Company"), granted options to purchase 40,000 shares of the Company's common stock to the each of the following executive officers:  David E. Fountain, Senior Vice President and Chief Financial Officer;  Steven M. Beckerman, Senior Vice President—Government Business Process Outsourcing; Michael A. Lawler, Senior Vice President—Electronic Payment Processing; Deanne M. Tully, Vice President General Counsel and Secretary; and Stephen V. Wade—Business Development.  In addition, the Compensation Committee granted a total of 147,500 options to 15 other key employees.  The options granted to both the Executive Officers and the 15 other employees were granted with an exercise price of $5.95 per share and will vest over five years.  In the event of the termination of the employment of the employee following a change of control of the Company, the options of that employee will vest immediately as to the number of shares that would be scheduled to vest over the following 18 months.
  On August 24, 2006, the Compensation Committee also granted options to purchase 40,000 shares of the Company's common stock to each of the following directors:  Charles W. Berger, Samuel Cabot III, Morgan Guenther, T. Michael Scott, and Bruce Spector, at an exercise price of $5.95 per share.  These options will vest over five years.  In the event of a change of control, all unvested options will vest immediately.
  Top of the Form
  SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
  Tier Technologies, Inc.
  August 29, 2006
  By:
  David E. Fountain
  Name: David E. Fountain
  Title: Chief Financial Officer