Tax Business Slowing Down?

Tax Season is Slowing Down. Have you noticed this tax season has been especially difficult? A lot of our members are reporting a 10% to 30% drop in number of clients.  Why do you suppose this is? The IRS released statistics for week ending February 7, 2020. 

Total Returns Received is down -0.4%

Total Returns Processed is up 2.1%. (this means the IRS is processing returns faster )

E-filing by Tax Professionals is down -3.7% (this is what’s affecting our industry)

Self-prepared returns are up 3.5% (this also affects our industry)

The dollar amount of refunds is down -4.8%.

There are many factors, first of all why are self-prepared returns on the increase?  Are there more ghost preparers?  Are taxpayers going to unqualified tax preparers to get a better price?  Are taxpayers going to big box stores, Turbo Tax, do it yourself websites?  Are more people are doing returns themselves?

Are undocumented workers just not doing their taxes for fear of deportation, immigration proceedings?

Latino Tax Pro recommends that if your tax business is slowing down, then you need to hurry up on ancillary services, like bookkeeping, payroll, sales tax, Corporation and Partnership tax returns or even real estate, insurance, other professional services.

Now is the time to start learning these new skills and more importantly letting your clients know that you are now offering these services.  You need to become a trusted business advisor and be an expert in offering other business services to your clients.  You need to find a reputable online training solution that can help you.

For more information please follow the link below: