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Tax Preparation Services in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Tax Preparation Services Market Research Report | NAICS 54121d | Oct 2016

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

IBISWorld’s Tax Preparation Services market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Market Share of Companies
Industry Statistics & Market Size
Annual Growth 11-16
Annual Growth 16-21
Annual Growth
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
  • ... purchase to read more

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... ... purchase to read more

Industry Report - Starting a New Business Chapter

There are few barriers to entry into the Tax Preparation Services industry. A large-scale operation is not essential to compete, and this is reflected by the fact that there are a large number of small businesses, including sole proprietors, operating in the industry. The top four players in the industry make up less than 50.0% of total market share and close to 75.0% of firms are nonemployers. However, to compete against the industry's largest players, firms typically need to establish a reputation, which is difficult given the large pool of operators in the industry. As a result, many small companies choose to join, rather than contend with the industry's largest firms, which are all franchisers. This can pose a barrier in itself, as franchisers require fees to join their network. Fur.. ... purchase to read more

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... purchase to read more


    Industry ProductsRelated Reports

    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 servicesStandard tax preparation servicesFull-service tax preparation servicesTax-related financial products
    Industry Activities
    Income tax compilation servicesIncome tax return preparation servicesOther 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 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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