Industry Analysis & Industry Trends
The Tax Preparation Services industry experienced a slight downturn during the recession due to falling national employment and a decrease in disposable income. However, the industry rebounded in 2011 as the national unemployment rate fell, and revenue increased as more Americans were required to file tax returns. Still, the industry landscape has begun to change, with consumer preferences increasingly trending toward operators that provide online filing options. Although improving economic conditions are expected to support industry revenue growth over the next five years, some operators' performance will be stunted, as online providers threaten traditional brick-and-mortar establishments... purchase to read more
Industry Report - Industry Analysis Chapter
Individuals must file tax returns if their incomes surpass a certain level, as determined by filing status, age and type of income received. Due to reduced incomes and lower employment caused by the economy's slowdown, demand for the Tax Preparation Services industry declined in 2009 and 2010. Low employment and income levels meant that fewer individuals reached the income threshold that requires tax filing, slowing industry growth over the five years to 2014. IBISWorld estimates revenue has grown at an average annual rate of 1.3% to $10.1 billion over the five-year period, including anticipated growth of 3.5% in 2014.
According to H&R Block, the industry's largest firm, the number of tax returns filed with the Internal Revenue Service (IRS) declined 1.7% in 2010... purchase to read more