Overview

Paying off: Rising employment will increase demand, despite external competition from online providers

IBISWorld’s industry research report on Tax Preparation Services provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • With more consumer options through electronic filing systems, the industry landscape has shifted
  • Regulators have become increasingly tough on the provision of RALs over the past five years
  • Rising employment is expected to provide more customers for tax-preparation businesses
  • Industry Analysis & Industry Trends

    Over the past five years, the industry has experienced solid growth as the unemployment rate fell and caused more Americans to file tax returns. Additionally, as per capita disposable income has risen, more consumers have had the resources to afford bringing their taxes to tax professionals. Although improving economic conditions are expected to support industry revenue growth over the next five years, some operators' performances will be stunted, as online providers threaten traditional brick-and-mortar establishments that are unable to adapt to the changing landscape.

    Industry Report - Industry Products Chapter

    Operators in this industry provide tax return preparation services without also providing accounting, bookkeeping, billing or payroll processing. Consequently, this industry primarily provides consumer tax services, preparation and filing. While many operators provide electronic filing services, this falls out of the scope of this industry. In addition to tax preparation, the industry's largest firms generate revenue through other avenues, including franchise fees and financial service products. Franchise fees are obtained directly from franchise operators for royalties and advertising.

    Consumers use tax preparers to make a necessary task simple, reduce their tax bill and increase their tax refund. In

    Additional Insights for the Tax Preparation Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tax Preparation Services Industry are

  • Experienced work force
  • Being part of a franchising chain
  • Provision of personalized services
  • IBISWorld analysts also discuss how external factors such as National unemployment rate and External competition for the Tax Preparation Services industry in the Tax Preparation Services industry impact industry performance..

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    Industry Products

    What is the Tax Preparation Services Industry?

    Firms in this industry provide tax return preparation services to individuals but do not offer accounting, bookkeeping, billing or payroll process services. Although the offices of CPAs are excluded from this industry, basic knowledge of tax law and filing requirements is required. Online tax return providers (see IBISWorld Report OD4549: Tax Preparation Software Developers) do not fit within the scope of this industry.

    Industry Products
    Basic tax preparation services
    Standard tax preparation services
    Full-service tax preparation services
    Tax-related financial products
    Industry Activities
    Income tax compilation services
    Income tax return preparation services
    Other tax return preparation services

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • National unemployment rate
  • External competition for the Tax Preparation Services industry
  • Percentage of services conducted online
  • Regulation for the Tax Preparation Services sector

  • Current Performance
  • Electronic filing
  • Refund anticipation checks
  • Increasing profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Electronic filing options
  • Provider resistance
  • Other financial products
  • Increasing regulation
  • Table: Tax Preparation Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tax Preparation Services Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Internet Service Providers
  • Law Firms
  • Promotional Products
  • Software Publishing

  • Products & Services
  • Standard tax preparation services
  • Basic tax preparation services
  • Full-service tax preparation services
  • Tax-related financial products
  • Chart: Tax Preparation Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals with income of $29,999 or less
  • Individuals with income from $30,000 to $74,999
  • Individuals with income of $75,000 or more
  • Businesses
  • Government agencies, nonprofits and other
  • Chart: Major Market Segmentation for the Tax Preparation Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Marketing and other
  • Chart: Cost Structure Benchmarking – Sector vs Tax Preparation Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tax Preparation Services Industry

  • Industry Globalization
    Major Companies
    H&R Block Inc.Intuit Inc.
  • Table: H&R Block Inc. - financial performance
  • Table: Intuit Inc. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Tax Preparation Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Tax Preparation Services Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Total employees in the US (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Free File Alliance
  • A public-private partnership with the IRS and a group of tax preparation providers that provides free electronic tax filing services for US taxpayers.
  • Internal Revenue Service (Irs)
  • The federal government agency responsible for collecting taxes and enforcing the internal revenue code.
  • Preparer Tax Identification Number (Ptin)
  • A unique identification number that is required for all paid tax return preparers.
  • Refund Anticipation Loan (Ral)
  • A loan that is made by a lender based on an anticipated federal income tax refund.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tax Preparation Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tax Preparation Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tax Preparation Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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