Industry Analysis & Industry Trends
Demand for tax preparation services has been restrained over the five years to 2013 due to falls in employment and income levels. In addition, consumers have opted to do their own taxes to save money, using a growing number of free options and at-home software products. While employment and income levels are forecast to pick up and stimulate industry demand, tax preparers will still face strong competition. Nonetheless, a new IRS regulation and expansion of industry services will lead to modest revenue growth... purchase to read more
Industry Report - Industry Analysis Chapter
Individuals must file a tax return if their income is above a certain level; this level changes based on filing status, age and the type of income that an individual receives. Due to reduced incomes and 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 2013. IBISWorld estimates revenue declined at a 0.2% average annual rate, including an estimated 1.4% increase in 2013 to bring revenue to $9.4 billion.
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